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ID: 175268

Could congressionally mandated incentives lead to deployment of large-scale CO2 capture, facilities for enhanced oil recovery CO / Edmonds, James

Edmonds, James	Journal Article
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Summary/Abstract

In passing the Bipartisan Budget Act of 2018, Congress reformed and strengthened a section of the tax code, 45Q, which provides tax credits of up to $35/ton CO2 for the capture and utilization of CO2 in qualifying applications such as enhanced oil recovery (EOR) and up to $50/ton CO2 for CO2 that is captured and permanently stored in a geologic repository. Earlier versions of the tax credit with lower credit values generated limited interest. This change to the tax code could potentially alter U.S. energy systems. This paper examines the effect of the increased 45Q credits on CO2 capture, utilization and storage (CCUS) deployment in the United States and on petroleum and power production. A range of potential outcomes is explored using five modeling tools. The paper goes on to explore the potential impact of possible modifications of the current tax credit including extension of its availability in time, the period over which 45Q tax credits can be utilized for any given asset and increases in the value of the credit as well as interactions with technology availability and carbon taxation. The paper concludes that 45Q tax credits could stimulate additional CCUS beyond that which is already underway.

Key Words

Enhanced Oil Recovery ; CCUS ; CO2 Capture ; Utilization and Storage ; 45Q Tax Credits ; EOR

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ID: 099250

Optimizing a CO2 value chain for the Norwegian continental shel / Klokk, O; Schreiner, P F; Pages-Bernaus, A; Tomasgard, A

Klokk, O	Journal Article
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2010.

Summary/Abstract

This paper presents a mathematical model for designing a carbon dioxide (CO2) value chain. Storage of CO2 in geological formations is recognized as an important alternative for carbon abatement. When CO2 is deposited in oil reservoirs it can sometimes be used to achieve additional oil production, enhanced oil recovery (EOR). The model determines an optimal CO2 value chain from a fixed set of CO2 emission points and a set of potential injection sites. It designs a transport network and chooses the best suited oil fields with EOR potential or other geological formations for storage. A net present value criterion is used. The model is illustrated by an example of a Norwegian case with 14 oil fields, two aquifers and five CO2 sources. A sensitivity analysis is performed on the most important parameters.

Key Words

Carbon Capture and Storage ; CO2 Value Chain ; Enhanced Oil Recovery

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