| ID | 177365 |
| Title Proper | Potential Impact of the U.S. Carbon Capture and Storage Tax Credit Expansion on the Economic Feasibility of Industrial Carbon Capture and Storage |
| Language | ENG |
| Author | Tarufelli, Brittany |
| Summary / Abstract (Note) | In early 2018, the U.S. Congress expanded the 45Q tax credit program for the capture, storage, and utilization of CO2. The 45Q tax credit expansion creates a financial incentive of $50 for each tonne of CO2 placed in long-term storage, a significant increase from the $20 per tonne that was originally authorized in the Energy Policy Act of 2008. Here, we estimate the net present value of industrial carbon capture and storage with the $50 per tonne credit and find that in some industrial systems, the costs of capturing, transporting, and storing one tonne of CO2 is less than $50. For systems in which the $50 tax credit is not cost effective, economies of scale associated with small emissions quantities are limiting, and a simple gaseous transportation solution which saves on CO2 compression costs improves economics in some cases. However, the $50 tax credit is unlikely to be sufficient to stimulate changes in the management of most industrial CO2 emissions.
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| `In' analytical Note | Energy Policy Vol.149; Feb 2021: p.112064 |
| Journal Source | Energy Policy 2021-02 149 |
| Key Words | Capture ; CCUS Economics ; CCUS Costs |