Brisbane Friday 31 May 2019: International leaders from industry, government, academia and the private sector have heard of the urgency of addressing rising emissions whilst learning of the opportunities the transition to a low emissions economy presents.
Speaking at the APAC CCS Forum, Brad Page CEO of event organiser the Global CCS Institute, told more than 100 delegates that addressing climate change is urgent, necessary and will require all technologies – including CCS – to be deployed at scale and at a much faster rate than is currently happening.
“Multiple independent and credible bodies have concluded that to achieve global climate change targets in the time frame required, all technologies are needed, and that CCS is the only likely solution for hard to decarbonise industries such as steel, cement and fertiliser manufacturing.
Mr Page highlighted the positive outcomes of a low emissions transition, and the opportunities CCS presents Australia’s communities, regions and the economy as a whole.
“The versatility of CCS to deliver deep emissions reductions across the power, industrial and transportation sectors, as well as presenting an enormous opportunity for the creation of a new low emissions economy, is a great strength of the technology.
“CCS leads to economic growth, it sustains communities and creates vital new jobs for regional areas. It also has a major role to play in the just transition for workers currently employed in the energy and industrial sector and preventing the early retirement of productive assets.
“There is no doubt Australia’s energy transition will be disruptive. However, it can also be a growth story. With an enabling policy framework and increased investment, we will achieve deep emissions reductions while enriching and preserving jobs and communities; including in fossil fuel resource regions”, said Mr Page.
Speakers at the Forum included representatives from the Australian and Victorian governments, UniSuper, Japan Bank for International Cooperation, Santos, Kawasaki Heavy Industries, China Baowu Steel Group and the CO2CRC.
Currently, there are forty-three (43) large-scale CCS facilities – 18 commercially, five under construction and 20 in various stages of development. Australia’s first CCS facility, Gorgon, is due to come onstream this year.
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The Global CCS Institute has launched a report analyzing California’s recently passed Carbon Capture and Storage Protocol (the Protocol). The report provides a summary of the regulation for project developers as well as policymakers in other states and countries, given its global applicability. While comparing it to other relevant regulations – including the federal carbon capture tax credit also known as 45Q – the report seeks to raise awareness for the opportunities created through the Protocol and to help project developers and policymakers understand the incentive structure and requirements alongside the environmental safeguards.
The Protocol, which was passed as an amendment to California's Low Carbon Fuel Standard (LCFS), incentivizes carbon capture and storage (CCS) projects that reduce the lifecycle emissions from bioethanol, hydrogen, and crude, provided the fuel is sold into the California market. The Protocol, in a pioneering move, also incentivizes direct air capture projects globally, provided they adhere to the regulation's standards. The Institute’s report comes on the heels of an announcement that Oxy Low Carbon Ventures and Carbon Engineering will begin engineering the world’s largest direct air capture plant which will also be designed to be eligible for both California’s CCS LCFS credits and US federal 45Q tax credits.
“The Global CCS Institute welcomes the amendment of the LCFS with a CCS Protocol. This relatively recent development demonstrates that governments are beginning to recognize that in light of ambitious climate goals, full decarbonization is close to impossible without large-scale deployment of carbon capture and storage,” said Guloren Turan, General Manager, Advocacy and Communications, at the Global CCS Institute.
The Institute’s report reviews the Protocol which was passed in September 2018 with broad support from a diverse set of stakeholders including environmental and climate advocates, as well as industry, and went into effect in January 2019. The LCFS aims to reduce the carbon intensity of the State’s transport fuel mix by 20 per cent by 2030, relative to 2010 levels.
"Fighting climate change to keep global temperatures from increasing beyond 1.5 degrees Celsius requires immediate and unprecedented action. California pioneered the first Low Carbon Fuel Standard in 2007. With a Protocol for carbon capture and storage now in place, California will continue to drive down its emissions, accelerate investments in breakthrough technology, and create opportunities for a new kind of climate entrepreneur. I look forward to working with my colleagues in Congress to spur innovation in clean energy development though carbon capture technology,” said Congressman Scott Peters (D-CA) about the regulation.
Currently trading at roughly $180 t/CO2, the LCFS provides one of the highest values on carbon globally. For US-based projects it can also be stacked with a CCS-specific federal tax credit known as 45Q, which will ramp up to $50 t/CO2 for geologic sequestration and $35 t/CO2 for CO2 stored via enhanced oil recovery, combining it to the highest CCS incentive globally.
“When California’s Carbon Capture and Storage Protocol took effect in January, it was a major step in ensuring that investment in CCS can be a viable tool in reducing greenhouse gas emissions from the state’s transportation sector,” said Deepika Nagabhushan, Program Director, Decarbonized Fossil Energy with Clean Air Task Force, a major US ENGO involved with advocating technological, regulatory and legislative pathways for addressing global climate change.
“The Institute’s report will help guide businesses to capitalize on the incentives at both the federal and state levels in the near term in developing CCS projects that have the effect of reducing California’s transportation CO2 emissions,” said Ms. Nagabhushan.
The report provides a concise summary of the most important details of the regulation while also offering insight into the interaction of states and federal regulation. For example, it describes how to stack the credits, compares the LCFS and 45Q eligibility, and lays out the criteria projects need to fulfill to qualify for both incentives. It also details storage, MRV, and liability requirements offering a comprehensive yet accessible analysis of the regulation.
“The direct air capture provisions also highlight that climate change is a transnational problem warranting global solutions,” highlights Ms. Turan.
“California has set itself an ambitious and laudable goal of becoming carbon neutral by 2045. To achieve this goal, the state will first have to double down on the carbon solutions that it has already championed, such as efficiency, renewable energy and clean vehicles. But it must also without a doubt aggressively pursue a broader suite of technologies and tools to curb its carbon emissions, and even remove them from the atmosphere. The latest changes to the LCFS regulation enabling CCS to participate in the program represent a visionary move on the state’s part, and a landmark in the quest to deploy such technologies more widely,” says George Peridas, Director, Carbon Management Partnerships, Lawrence Livermore National Laboratory.
UK Committee on Climate Change highlights crucial role for carbon capture and storage in achieving a net-zero target in the UK
2nd May 2019
The Global CCS Institute welcomes the UK Committee on Climate Change (CCC) report, which recommends that the UK commits to cutting its greenhouse gas (GHG) emissions to net-zero by 2050 and highlights the crucial role carbon capture and storage (CCS) needs to play to achieve this goal. The long-awaited CCC report says: “CCS is a necessity and not an option.”
The report recognises that reaching net-zero GHG emissions in the UK will require important contributions from CCS in industry, for hydrogen production, combined with bioenergy (e.g. for power generation) and in flexible fossil-fired power generation, with up to 75-175 MtCO₂ being captured and stored annually by 2050.
The CCC recommends that CO₂ infrastructure development should start as early as possible, with the first CCS cluster being operational by 2026 and four more following soon after, with at least one of these clusters producing substantial amounts of low-carbon hydrogen. As such, it identifies the development of relevant CO2 infrastructure as an important policy priority.
Welcoming the report, Guloren Turan, General-Manager Advocacy and Communications at the Global CCS Institute said:
“This report is very timely and we hope that it will be an important impetus to government, industry and other stakeholders to accelerate their efforts to deploy CCS facilities and develop CO2 transport and storage infrastructure. There are many promising CCS projects in the pipeline across the UK that can bring considerable value for communities and industry.”
There are currently 43 large-scale CCS facilities operating or under development around the world. In the UK, there are six CCS facilities in early development: Acorn CCS, Caledonia Clean Energy, HyNet North West, H21 North of England, Teesside Collective, and BECCS pilot plant at Drax Power Station. Several of these facilities also involve hydrogen production.
You can read the full report here.
The UK Business, Energy and Industrial Strategy (BEIS) Committee has released its final report which presents its recommendations and findings following its Inquiry on carbon capture, usage and storage (CCUS).
The report highlights the importance and value of CCUS to the UK and its economy and urges the UK Government to consider the technology as an important tool for least-cost decarbonisation. The Committee highlighted that CCUS has the unique ability to significantly reduce industrial emissions, enable the production of clean hydrogen and help deliver the UK’s emission reduction targets. The report also recommends urgent and sustained action to help accelerate the deployment of CCUS in the UK by putting forward a series of recommendations to support forward-looking policy development on CCUS.
On the occasion of the launch of the report, the Institute’s General-Manager Advocacy, Guloren Turan said:
“We welcome the constructive recommendations of the BEIS Committee report on CCUS which we believe presents an opportunity to strengthen UK’s ambition towards CCUS both across government and industry to further support the deployment of the technology. We commend Minister Claire Perry’s leadership and commitment to deploying CCUS in the UK and her recognition of the huge opportunities it can bring for the country."
In its report, the BEIS Committee also highlights the early mover advantage to deploying CCUS and the role of government to de-risking investments and developing business models for capture, and transport and storage.
The report is the outcome of a public consultation and several public expert hearings held with industry, academia and civil society. The BEIS Committee - a cross-party group aimed at assessing the policy and administration of BEIS department - launched the CCUS inquiry in May 2018 to examine the UK Government’s ambition to deploy CCUS to meet its climate targets, as highlighted in the UK Government Clean Growth Strategy. With this inquiry, the work of the BEIS Committee aimed to complement the work of the CCUS Cost Challenge Taskforce.
You can read the full report here.
The Institute also recently released a report “Policy priorities to accelerate large-scale deployment of CCS”. Read the full report here.
New report highlights strategic policy priorities for accelerating carbon capture and storage deployment
2nd April 2019
The Global CCS Institute, an international think tank and a leading authority on carbon capture and storage (CCS), is launching today a report exploring how to stimulate investment in CCS. The new report identifies concrete policy actions to ensure CCS delivers on global climate targets.
The Institute’s report reviews the progress achieved until now, and identifies the policies and commercial conditions that enabled investment in the 18 large-scale CCS facilities currently in operation, and the additional five that are under construction. The report also identifies overarching barriers to CCS deployment including market and information failures, which recent projects had to overcome.
Based on an assessment of existing CCS projects, the Global CCS Institute found that several of these facilities have common features, most built with grant support and relying on revenue from enhanced oil recovery. Others, in particular those in the United States, relied on tax credits, or the regulation of carbon emissions, in the case of the Gorgon project in Australia. The paper also highlights that the cost of CCS is closely linked to the number of CCS facilities in operation and that it will continue to fall as new projects come online due to economies of scale and learning by doing.
Despite some progress in the deployment of CCS, the current policy environment will not suffice to stimulate the scale-up of the technology to deliver the number of projects needed to meet the Paris targets. The paper reveals a policy framework that will enable the scaling up of CCS deployment, one that must focus on de-risking investments, creating new business models around shared transport and storage networks and long-term storage liability management. To achieve this, governments will have an important role to play.
The report also found that debt financing will be an essential asset for future projects. To accelerate project development, banks will have to provide access to affordable debt financing to CCS project developers. The paper also examines the eventual progression from high cost debt financing to the mitigation of risks that will result in the reduction of the cost of debt for future CCS projects.
Finally, the report puts forward a set of key recommendations that will create an enabling policy environment to accelerate the deployment of CCS:
- Establish a value on carbon to create a financial incentive for investing in CCS
- For governments to play the critical role of enabling the development of shared transport and storage infrastructure by investing directly in infrastructure or by setting the regulatory framework within which networks can be developed cost effectively
- Implement a legal and regulatory framework that clarifies storage operators’ liabilities
- Provide capital support in the form of grants, accelerated depreciation, concessional loans, or other mechanisms to attract private capital to CCS investments in the early stages of deployment.
- Identify and consider additional policy interventions designed to reduce specific risks perceived by financiers and equity investors in order to bring down the cost of capital and enhance the financial viability of future CCS investments.
A webinar will be held on April 4th to discuss the report findings. Two authors of the Institute’s report, Dominic Rassool, Senior Consultant Policy and Finance and Alex Townsend, Senior Consultant Economics both from the Global CCS Institute will present the findings. You can register to the webinar here.
You can download the full report here.
Antonios Papaspiropoulos (Melbourne) : +61 401 944 478 firstname.lastname@example.org
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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. 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 this vital technology can play its part in reducing greenhouse gas emissions. For more information, visit www.globalccsinstitute.com
Major US climate change forum rallies behind CCS as a key technology to decarbonize the economy
19th March 2019
Washington, DC, March 19, 2019: Leaders from government, industry and the public sector meeting in Washington, DC have been told that no decarbonization option should be taken off the table given the scale and urgency of climate change.
Speaking at the 8th Annual Forum on Carbon Capture and Storage (CCS) hosted by the Global CCS Institute, Brad Page, the organisation’s CEO, told the audience of more than 120 delegates that all clean energy technologies must be deployed immediately to meet Paris targets and transition to a new energy economy.
Mr. Page, who heads the international think tank, said the 45-year old technology is proven and backed by science and commercial application. In fact, there are currently 18 large-scale CCS facilities in operation globally. Mr. Page added that CCS must sit alongside renewables and other clean technologies as a mainstream decarbonization option.
“The Intergovernmental Panel on Climate Change’s (IPCC) recently released 1.5 °C Report has reaffirmed the essential role CCS has to play in decarbonization. “The reality is, all decarbonization options are needed and all available technologies must be deployed at scale to ensure an emissions-free future by mid-century.”
Mr. Page said CCS can deliver deep emissions cuts in the power, industrial, and transportation sectors.
“Furthermore, as organizations like the International Brotherhood of Boilermakers have attested, CCS can create significant economic opportunities for job creation, new industries and growth.”
“CCS opens up a new set of opportunities for decarbonizing the United States’ economy. Not only will it allow a just transition for workers currently employed in the energy sector but will also prevent the early retirement of productive assets. As such, large-scale CCS deployment, alongside renewable and clean energy and as part of an economy-wide decarbonization strategy, has the opportunity to boost the US to become the manufacturing heart of a zero-emissions future.”
Mr Page said the United States has now joined a growing number of countries which are creating the “policy confidence” necessary to scale-up the deployment of CCS.
“An enabling policy framework is fundamental for large-scale CCS deployment globally, and project developers and investors need the confidence generated through consistent government support.
“In the US, the tradable tax credit incentive known as 45Q which was passed last year has created a climate that is allowing CCS to flourish.
“The 45Q tax credit should be seen as the most progressive CCS-specific incentive globally. At $50 t/CO2 for CO2 stored in geologic storage and $35 t/CO2 for CO2 permanently stored via enhanced oil recovery (EOR), it has already seen new projects announcements. More are expected, especially once the Internal Revenue Service (IRS) clarifies the administrative processes that will apply.”
Mr Page also pointed to the state of California’s recently passed CCS protocol for its Low Carbon Fuel Standard (LCFS) as an enabler to CCS projects that will reduce emissions from transportation – the state’s largest source of greenhouse gas emissions.
Additionally, Direct Air Capture, a technology that removes CO2 out of the air, would also benefit from the receipt of credits in the LCFS market.
Speakers at the Forum included representatives from Toyota, Occidental Petroleum, Southern Company, Exelon, LafargeHolcim, the Clean Air Task Force, the International Brotherhood of Boilermakers, and the Aspen Institute.
The Global CCS Institute welcomes the European Parliament’s adoption of the resolution on Europe’s long-term emission reduction strategy. The joint resolution puts forward the European Parliament’s position on the vision proposed by the European Commission for a competitive and prosperous climate neutral Europe. The resolution will help set a clear direction of travel for Europe’s climate and energy policy.
The Institute is pleased that the European Parliament took a positive stance on carbon capture and storage (CCS) acknowledging its important role in decarbonizing the industrial and energy sectors and achieving global climate targets, as highlighted in the IPCC SR15.
In response to the vote, Guloren Turan, General Manager for Advocacy at the Global CCS Institute stated that: “ Today’s vote recognises that Europe is ready to step up and take ambitious action to tackle climate change. This resolution marks an important step forward in the Parliament’s recognition of the role of CCS in achieving Europe’s climate targets. In addition to its important role as a climate mitigation technology, CCS can also deliver significant value to European economies and support a just transition for all. The upcoming European Council meeting and the Sibiu Summit will also be key opportunities to emphasize the need to embrace all climate solutions, including CCS, in Europe’s climate strategy.”
The Institute believes that it will be critical for Europe and its Member States to embrace CCS alongside other climate mitigation actions and technologies to deliver its ambitious climate goals. CCS will be needed to reduce emissions in the scale and timeframe required to deliver net-zero by mid-century. Three out of the four pathways included in the IPCC SR15 include CCS as a necessary solution to reach the 1.5 target.
The Institute stresses that CCS is a proven technology that has the potential to deliver deep emission reductions in energy-intensive industries and the power sector. In light of the European Parliament's resolution, it is important to emphasise that different carbon removal and negative emissions technologies have different stages of technological maturity and are confronted with different scalability challenges.
In the case of CCS, this is a proven and safe technology that has been in commercial use for over 40 years. To date, more than 200 million tons of CO2 have been safely stored. There are currently 18 CCS large-scale projects in operation globally. In Europe, Norway hosts two large-scale CCS projects, Sleipner and Snøhvit.
To deliver Europe’s climate ambition, immediate climate mitigation action is needed and efforts to develop CCS and CO2 transport and storage infrastructure should be a priority to mitigate emissions.
You can read the text of the adopted resolution here.
European Commission announces investment programme supporting low-carbon technologies
27th February 2019
The Global CCS Institute welcomes the launch of the European Commission’s ETS Innovation Fund. The Fund will be one of the key funding instruments supporting Europe’s transition to a climate neutral economy. The investment programme of around €10bn, corresponding to the market value of 450 million emission allowances, will support the deployment of carbon capture and storage (CCS) and other innovative low-carbon technologies. The fund succeeds the NER300 programme and builds extensively on its learnings. The Fund, said to be one of the world’s largest funding initiatives, aims to finance projects that will have strong value for Europe and achieve significant emission reductions. The first call for proposals is expected in 2020.
In welcoming the funding available for carbon capture and storage, Guloren Turan, General-Manager – Advocacy at the Global CCS Institute said: “This announcement is a positive sign for the CCS community and shows the EU's commitment to supporting CCS and its deployment. Numerous stakeholders have been involved since the fund’s inception to make sure it has the right criteria and incorporates the lessons learned from the NER300. Following the release of the Commission’s vision for the EU long-term strategy, it is clear that CCS has an important role to play in the decarbonization of Europe’s economy. The fund will provide vital funding to support CCS projects, this alongside other funding instruments including the Connecting Europe Facility. There are several promising CCS projects across Europe that will be eligible for funding under the Innovation Fund. We hope to see mature CCS projects submitting their applications in 2020 and that the Fund will result in important developments in CCS deployment.”
Innovation Fund Delegated Regulation - Frequently Asked Questions
The Global CCS Institute is saddened by the news that Professor Wallace S. Broecker, one of the world’s leading climate scientists, has passed away. Professor Broecker was a geo scientist and professor at the Department of Earth and Environmental Sciences at Columbia University. The world-renowned climate scientist coined the term “global warming” in 1975. He spent an important part of his academic career researching the ocean’s role in climate change.
During an interview with BBC Hardtalk, he spoke realistically about the pressing need to decarbonise the global economy with the deployment of carbon capture and storage. He said: “I think we have an option and the option is to let them [industrializing nations] industrialize but take care of the problem by capturing and storing the CO2. We’re going to have to learn to capture the CO2 and bury it – just like we learned to collect and put away garbage [and] sewage… We’ve taken over stewardship of the planet and with that we have the responsibility to take care of it.”
Professor Broecker was a strong advocate for climate action and carbon capture and storage. He will leave behind an important legacy with his remarkable contributions to the climate field.
You can read more about Professor Broecker’s achievements here.
Drax power plant becomes first of its kind BECCS pilot
8th February 2019 - London
Statement on Drax's announcement
Global CCS Institute’s member Drax has announced that a tonne of carbon dioxide a day is now being captured at the company’s power station in North Yorkshire. The biomass power generation project aims to become the world’s first carbon negative power station. The project also features a new form of post combustion carbon capture on biomass feedstock, instead of coal. In the IPCC 1.5 report, BECCS plays an important role in delivery of global climate targets. In fact, it is present in three of the four scenarios put forward by the IPCC report.
Responding to the announcement, Guloren Turan, General-Manager, Advocacy, for the Global CCS Institute said: “It is exciting to see Drax’s innovative project taking form. It shows the power of industry leadership on climate action. The project has the potential to kickstart BECCS in the UK and globally. It will also help demonstrate the potential of the technology to decarbonise our energy system.”
For further information about the project and the latest announcement, you can find Drax’s press release here.
Melbourne, 1 February 2019: The world’s leading authority on carbon capture and storage (CCS), the Global CCS Institute, has today welcomed three new appointments to its Board of Directors.
- Philip Bainbridge – non-executive Chairman of the Papua New Guinea SustainableDevelopment Program and non-executive director of Beach Energy (Australia);
- Cynthia Wang – Client Advisor, Bridgewater Associates (China);
- Sumie Nakayama – Senior Advisor, Climate Change, J-POWER (Japan).
Welcoming the appointments, Global CCS Institute Chairman, Claude Mandil, said:
“As carbon capture and storage becomes more widely deployed as an essential climate change solution, we are delighted to welcome three new highly credentialled directors to our Board. Their business backgrounds and commitment to address the climate change challenge adds still more depth to an already impressive set of capabilities.”
The appointments bring the total number of Global CCS Institute directors to seven. In addition to today’s three appointments, they include:
- Board Chairman, Claude Mandil (France);
- Shell International, Group Climate Change Adviser, David Hone (United Kingdom);
- BHP Vice President, Sustainability and Climate Change, Dr Fiona Wild (Australia);
- Thunderbolt Clean Energy CEO, Eric Redman (United States of America).
Currently, there are forty-three (43) large-scale CCS facilities globally– 18 operational, five under construction and 20 in various stages of development.
Mr Phil Bainbridge is currently the non-executive Chairman of the Papua New Guinea Sustainable Development Program and a non-executive director of Beach Energy, and was formally Chairman of Sino Gas and Energy Holdings Ltd.
Mr Bainbridge worked for the BP Group for 23 years in a range of petroleum engineering, development, commercial and senior management roles in the UK, USA, Australia and around the world. From 2006, Mr Bainbridge worked at Oil Search initially as the Chief Operating Officer and then as Executive General Manager LNG, responsible for all aspects of Oil Search’s interests in the US$19 billion PNG LNG project.
Mr Bainbridge has a BSc (Hons) in Mechanical Engineering and is a Member of the Australian Institute of Company Directors.
Ms Wang is currently a Client Adviser at Bridgewater Associates and previously held positions as the Managing Director at Rothschild & Co and also the Managing Director at China International Capital Corporation (CICC), covering Energy, Infrastructure and Technology sectors.
Ms Wang has advised many clean energy companies on IPOs, debt and equity financing and Mergers and Acquisition transactions and has more than 20 years of experience in global capital markets and corporate finance.
Ms Wang is a Trustee of the International School of Beijing, holds an MBA degree and an MS in Computational Finance from Carnegie Mellon University.
Ms Sumie Nakayama is currently the Senior Advisor on Climate Change with the Corporate Planning and Administration Department / Thermal Power Department at J-POWER.
Ms Nakayama has established her expertise in research of global energy and climate policy, including the development of low carbon technologies incorporating CCS, and is a specialist inmodel-based energy demand/supply analysis. She worked as a visiting researcher at theCenter for Energy and Environment Policy Research, Massachusetts Institute of Technology.
Ms Nakayama holds a Bachelor of Science in applied physics from Tokyo Institute of Technology and Master of Engineering in Energy Science from Graduate School of Tokyo Institute of Technology.
Antonios Papaspiropoulos (Melbourne): +61 401 944 478 firstname.lastname@example.org
Lucy Temple-Smith (Melbourne): +61 466 982 068 email@example.com
Annya Schneider (Brussels): +32 (0) 25503972 firstname.lastname@example.org
Lee Beck (Washington DC): +1 202-677-9053 email@example.com
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. For more information, visit globalccsinstitute.com
Sacramento, California – The Global CCS Institute welcomes California’s Air Resources Board’s (ARB) decision to include a protocol for carbon capture and storage (CCS) in its Low Carbon Fuel Standard (LCFS), a rule which became effective on January 1, 2019. “The inclusion of the CCS protocol in the LCFS signals that California – arguably one of the most active states when it comes to combatting climate change – recognizes that CCS has a role in its energy transition to deliver emissions reductions”, says Guloren Turan, General Manager, Advocacy and Communications, at the Global CCS Institute.
The protocol allows transportation fuels whose lifecycle emissions have been reduced through CCS to become eligible for credits under the LCFS. Currently, the credits are trading at roughly $180 per ton, and can be combined with the federal tax credit for CCS projects. Also known as 45Q, the federal tax credit provides $50/t for CO2 stored geologically, and $35/t for CO2 stored permanently via enhanced oil recovery. “In the medium term, the establishment of a CCS protocol also paves the way for CCS to become eligible in the state’s Cap-and-Trade Program”, says Turan.
CARB’s decision comes on the heels of two other landmark climate commitments in California, which the Global CCS Institute applauds. In September, the California State Legislature passed SB100, which requires the state to generate 100% of electricity from carbon-free sources with a renewable portfolio standard of 60% built in. The same month, former Governor Jerry Brown also signed Executive Order B-55-18, requiring the entire economy to achieve carbon neutrality by 2045.