The Global CCS Institute Welcomes Call from the White House to Accelerate Carbon Management
22nd April 2023 - Washington DC
The Global CCS Institute welcomes President Biden’s call for accelerating carbon capture, utilization, storage, and removals (CCUS and CDR) at the Major Economies Forum (MEF); in addition to decarbonizing energy, ending deforestation and tackling non-CO2 pollutants.
“The Carbon Management Challenge announced by the White House will be a major catalyst in accelerating the deployment of carbon capture technology globally” says Jarad Daniels, CEO of the Global CCS Institute. He observes “Only a few days ago, the G7 energy and climate minsters’ communique demonstrated a united front in commitment towards carbon management and climate change mitigation, in scaling up this critical technology to gigatonne scale. Now, with the call to catalyse global climate action at the MEF, we are at a pivotal point to accelerate the deployment of all the necessary solutions to keep 1.5°C limit on warming within reach.”
The International Energy Agency (IEA) estimates that roughly 1.2 gigatonnes of CCUS and CDR will be needed by 2030 to limit warming to 1.5°C. According to the Institute’s CO2RE database, currently there are 37 commercial facilities in operation with a capacity to capture and store 50 million tonnes of CO2 per annum (mtpa). In addition, there are over 200 facilities in various stages of development, bringing the total capacity of the project pipeline close to 300 mtpa. This means that the current pipeline of projects would need to grow by 4x by 2030 to put us on the right trajectory for net-zero emissions by mid-century.
Mr. Daniels says: “Carbon management will continue to play multiple, unique roles in decarbonising the global economy, both in reducing and removing emissions. We anticipate even more strategic partnerships and public-private collaboration driving its deployment and stand ready to support governments and businesses in accelerating the scale-up of this critical climate technology.”
Read the full announcement from the White House here:
- FACT SHEET: President Biden to Catalyze Global Climate Action through the Major Economies Forum on Energy and Climate (April 20, 2023)
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About the Global CCS Institute: The Global CCS Institute is an international think tank whose mission is to accelerate the deployment of carbon capture and storage (CCS), a vital technology to tackle climate change and deliver climate neutrality. For more information, visit www.globalccsinstitute.com
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Global CCS Institute Welcomes White House Announcement of Two New Taskforces on Carbon Capture and Storage
29th July 2022 - Washington DC
In the Federal Register today the White House Council on Environmental Quality announced the creation of two new taskforces on “Carbon Dioxide Capture, Utilization, and Sequestration (CCUS)” which will provide recommendations on increasing the efficiency and equity of CCUS permitting and development. One of the taskforces will focus on CCUS deployment on federal lands and offshore waters, while the other focuses on non-federal lands.
The Global CCS Institute’s CEO, Jarad Daniels, welcomed this development, saying: “Today’s announcement further demonstrates the Biden Administration’s commitment to climate leadership. The science tells us that CCUS is necessary to achieve our global climate goals, and these two new taskforces will help accelerate decarbonization across the United States, putting us on a stronger trajectory towards net-zero emissions.”
The U.S. is undoubtedly a global leader in CCUS with 12 commercial facilities in operation and approximately 70 additional facilities under development, but further action is urgently needed. “The challenge before us is that globally we need to scale well beyond five gigatonnes of carbon capture annually within the next few decades to help achieve our global climate goals, which is over 100x our current capacity,” Mr. Daniels said, referencing findings from recent International Energy Agency reports. “Reaching gigatonne scale CCUS is an all-hands-on-deck effort and that means we need broad public support. These two new taskforces will help ensure that a wide range of stakeholders, particularly local communities, have a voice in CCUS projects and benefit from their development.”
Senior Communications Lead for the Americas
The Global CCS Institute is an international think tank whose mission is to accelerate the deployment of carbon capture and storage (CCS), a vital technology to tackle climate change and deliver climate neutrality. For more information, visit www.globalccsinstitute.com
New wave of CCS activity: Ten large-scale projects announced
29th October 2019 - Washington DC
Washington, DC – The Global CCS Institute, a think tank, announced that ten large-scale carbon capture and storage (CCS) facilities were verified and added to its database. “There are now 51 CCS facilities globally – 19 in operation, four under construction, and 28 in various stages of development with an estimated combined capture capacity of 96 million tonnes of CO2 per annum”, said Brad Page, CEO, Global CCS Institute. “We are thrilled to see this new momentum of CCS project announcements globally. Eight of the ten facilities added are in the US, where policy confidence has resulted in increased project activity”, he adds.
The Global CCS Institute identifies and tracks large-scale CCS projects around the world.
The new US projects cover applications such as ammonia production, ethanol production, power, direct air capture, and integrated commercial storage hubs. CO2 storage hubs, which can store large amounts of CO2, remove barriers to CCS investment and help to bring down costs.
“These carbon capture and geologic storage projects across multiple industries and different regions of the country underscore how the revamped federal 45Q tax credit, coupled in some cases with DOE funding for engineering, is stimulating early project development and investment,” said Brad Crabtree, Vice President for Carbon Management at the Great Plains Institute and director of the Carbon Capture Coalition. “This is just the beginning—we will see even more projects emerge as soon as the U.S. Treasury comes out with its long-delayed guidance on the 45Q credit.”
The US-based projects are the result of a combination of sustained government support for CCS deployment and progressive incentive mechanisms triggering private sector action. These include the 45Q tax credit and the eligibility of CCS to receive credits under California’s Low Carbon Fuel Standard (LCFS). The project update also comes on the heels of the US Department of Energy announcing $110 million in federal funding for CCS, including support for Front-End Engineering Design (FEED) Studies for nine CCS projects.
“CCUS plays an important role in reducing emissions and in carbon dioxide removal in the Intergovernmental Panel on Climate Change’s pathways that can limit warming to 1.5-2.0 degrees Celsius. I am encouraged that a diverse set of projects are moving forward across a variety of sectors and applications”, said Karl Hausker, Senior Fellow, World Resources Institute Climate Program.
Two of the projects added were announced by Oxy Low Carbon Ventures, which already operates the Century Plant CCS facility. They include capturing the CO2 from two ethanol facilities, as well as the largest direct air capture project to date, aimed at capturing 1 Mtpa of CO2. The projects are expected to be designed to be eligible for both 45Q and the LCFS. In addition to the projects it is leading, the company also announced a letter of intent for a CO2 offtake agreement with a carbon-negative fuel production facility recently.
“We’re excited to expand our existing carbon capture project plans,” said OLCV President Richard Jackson. “Development of carbon capture, utilization and storage technologies is core to Oxy Low Carbon Ventures’ mission to advance a low carbon economy, and these new projects will open a pathway to producing fully carbon-neutral or even net-negative fuels.”
The global project pipeline also includes important technology developments including what could become the first large-scale direct air capture (DAC) project, as well as what could become the first large-scale CCS application on a natural gas power plant with the UK-based Clean Gas Project. In the Middle East, Abu Dhabi National Oil Company (ADNOC) is adding a second CCS plant to its portfolio. The company is also operating the first CCS project on a steel plant. CCS, which is seen as vital to achieving climate goals, enjoys broad and diverse support.
“It's exciting to see the growing project pipeline for CCS projects both in the US and around the globe. Our hope is that these new projects will demonstrate the importance of investment in CCS and its vital role in creating jobs and sustaining communities”, said Cecile Conroy, Director Government Affairs Department, International Brotherhood of Boilermakers.
This new wave of CCS projects update comes ahead of the release of the Global Status of CCS 2019 Report on December 9 at COP25. The report is the Global CCS Institute’s annual, flagship report and details progress, policies and projects on CCS globally.
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About the Global CCS Institute: The Global CCS Institute is an international think tank whose mission is to accelerate the deployment of carbon capture and storage (CCS), a vital technology to tackle climate change and provide energy security. For more information, visit www.globalccsinstitute.com
US Enacts Landmark CO2 Storage Policy
12th February 2018 - Washington DC
Early Friday morning, the US Congress approved the most significant pro-carbon capture and storage (CCS) national policy in a decade, a tax credit for CO2 storage, known as 45Q for its section number in the US tax code. The new law is widely expected to stimulate the development of new CCS projects.
The policy change culminates a six-year effort broadly supported by stakeholders in the US and members of both political parties. Institute members Great Plains Institute and the Clean Air Task Force led an advocacy coalition with strong support from Occidental Petroleum, ClearPath and Cloud Peak Energy.
Global CCS Institute CEO, Brad Page, said project developers strongly believe the 45Q program dramatically improves the future CCS financing picture.
“We believe the intersection of better economics with the exciting technology advancements that the US Department of Energy has supported and developed will accelerate the critical deployment of CCS in North America.”
”Financial instruments have always been an essential part of getting any new clean technology deployed and this is the kind of incentive that is needed.”
While government incentives and subsidies dating back to 1992 have pushed a rapid rise in US wind and solar energy, US national support for CCS came later and with more limited application.
A CO2 storage tax credit beginning at $US10 per metric tonne was enacted only in 2009 and capped at 75 million metric tons. With that limit effectively now reached, project development in North America has stalled as developers and stakeholders awaited action by the US to reconsider policy.
The new law both extends and expands upon the original.
Firstly, it includes no cap on storage available for the credit, providing more certainty for projects that may take years to plan and develop.
Secondly, over time the law increases values for geological storage to US$50 per ton and for utilization such as enhanced oil recovery to US$35 per ton.
Thirdly, it lowers the eligibility threshold from 500,000 to 100,000 tonnes of CO2 stored on an annual basis. The higher level in the existing law has prevented smaller industrial projects from using the credit.
Mr Page said the Institute believes the new 45Q law can be a win on all counts.
“This is potentially a boon for business, for global CCS deployment, for energy security, and certainly for the climate. Its sponsors in the US Congress are to be commended for their tireless work as are stakeholders and our Institute members.”
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About the Global CCS Institute: Our mission is to accelerate the deployment of carbon capture and storage (CCS), a vital technology to tackle climate change and provide energy security. Working with and on behalf of our Members, we drive the adoption of CCS as quickly and cost effectively as possible by sharing expertise, building capacity and providing advice and support so that this vital technology can play its part in reducing greenhouse gas emissions. Our diverse international membership consists of governments, global corporations, small companies, research bodies and nongovernment organisations, committed to CCS as an integral part of a low-carbon future. We are headquartered in Melbourne, Australia with regional offices in Washington DC, Brussels, Beijing and Tokyo. For more information, visit www.globalccsinstitute.com