Why the carbon capture subsidies in the climate bill are good news for emissions

But in the heated debate about carbon sequestration, it is often lost that technology can also play critical roles in accelerating emissions reductions across a variety of industries. This includes cleaning up highly polluted industrial sectors such as cement, steel and fertilizers. These actions could also support the development of low-emissions fuels and so-called bioenergy with carbon capture and storage, or BECCS, which is being prepared by the United Nations climate panel. Models To rely heavily on drawing up feasible scenarios that prevent the planet’s temperature from rising by more than two degrees Celsius above pre-industrial levels.

Finally, the subsidies should spur the development of the carbon dioxide pipelines and storage facilities that will be needed to reliably transport and sequester increasing amounts of carbon dioxide in the coming decades, says Paulina Jaramillo, a professor of engineering and public policy at Carnegie Mellon University.

This will be critical to reducing the cost of other carbon capture efforts, making cleaning a wider range of products more affordable. It would also provide a major boost to the increasing efforts to suck up greenhouse gases from the atmosphere at huge scales, leading to increased research body The discoveries will also be necessary to keep global warming under control. (This type of technology, known as decarbonization, is different from capturing emissions before they leave a power plant or factory.)

The Replication Project, a Princeton-based effort to model the impact of climate policies, Estimates That the package will drive about $28 billion in annual capital investment in carbon dioxide transmission and storage projects, as well as power plants with carbon capture equipment, by 2030. At that point, US utilities will sequester about 200 million metric tons of carbon dioxide. per year, a 13-fold increase About what would likely happen with just the infrastructure bill that was passed last year. According to the analysis, the amount of carbon sequestered will double again by 2035. (For comparison, the country’s total greenhouse gas emissions were about 5.6 billion tons in 2021).

“The IRA creates an opportunity for the United States to do so [carbon capture and storage] says Julio Friedman, chief scientist at Carbon Direct, a research, investment, and advisory firm focused on decarbonization. “It provides opportunities to reduce pollution in societies, to develop and test technologies, to create clean jobs, and to compete globally in trade and technology.”

the details

Irish Republican Army includes Hundreds of billions in grants, loans, federal purchases, and tax credits designed to drive research and development efforts, renewable energy projects, electric vehicle sales, build the clean energy manufacturing sector, and more. In addition, it can accelerate the development of carbon capture and storage in several ways.

Notably, it increases so-called 45Q tax credits for projects that capture, remove, and store carbon away. With these larger subsidies, companies in certain sectors can break even or even profit from adding needed equipment and managing the resulting carbon.

Specifically, the credit increased from $50 per metric ton to $85 per ton for industrial facilities and power plants that permanently sequester carbon dioxide in deep underground geological reservoirs, according to the analysis by the law firm of Gibson Dunn. It also raises that credit from $50 to $180 for utilities that permanently remove carbon dioxide from the air and store it away, a process known as direct air capture.

Leave a Comment