Carbon management technologies enjoy broad support: political, business, economic, and environmental leaders agree on the need for these technologies as part of the overall mix of technologies to address climate change. While there is no silver bullet to address the impacts of our changing climate, carbon management technologies -- which includes carbon capture from industrial and power facilities, carbon dioxide (CO2) removal directly from the atmosphere, transport, reuse, and safe and permanent storage of captured CO2 -- are an essential part of the effort to decarbonize our highest emitting sectors and help the US achieve net zero emissions by mid-century.&nbsp; Over the past decade, the Carbon Capture Coalition and its 100+ members have helped to build this broad, diverse foundation and played a central role in advocating for a comprehensive portfolio of bipartisan federal policies to commercialize the full suite of carbon management technologies. Thanks to efforts from the Carbon Capture Coalition and allied organizations, a framework is in place for the large-scale deployment of carbon management technologies across emitting sectors. The Inflation Reduction Act (IRA), coupled with the historic investments for carbon management in the Bipartisan Infrastructure Law (BIL), has turbocharged interest in carbon capture at industrial facilities and power plants and directly from the air. &nbsp; With these historic investments leading to increasing projects across the country, engaging local communities and providing accessible information on the clean energy transition is of the utmost importance. The Carbon Action Alliance, an initiative of the Great Plains Institute, is a growing network of governmental, industry, labor, environmental, and community partners working to inform the public about carbon management opportunities, address decarbonization challenges, support project deployment, and benefit communities. The Alliance provides resources and tools accessible to the public through resources on its website, through convenings, and events. &nbsp;45Q Sets the Foundation for Commercial Deployment of Carbon Management Technologies Today, there are 14 domestic commercial-scale facilities with the capacity to capture and store approximately 20 million metric tons of CO2 per year, representing nearly half of the global deployment of the technology to date. Historically, carbon capture technology has been primarily applied in those industrial sectors that emit a pure stream of CO2, such as ethanol production or natural gas processing. However, enhancements to the 45Q tax credit have turbocharged interest in applying carbon management technologies across emitting sectors.&nbsp; This August marked the second anniversary of the IRA, a critical milestone for the section 45Q tax credit, the foundational policy for the deployment of carbon management technologies. The 45Q tax credit provides a credit on a per-metric ton basis for carbon that is captured from emitting facilities or directly from the air and then permanently stored or reused to make useful products. Today, thanks to these historic policies in support of carbon management, there are now nearly 220 announced carbon management projects in the US across a range of emitting sectors. 45Q Tax Credit Structure &nbsp; Below, we detail several recent techno-policy developments for the deployment of these climate-crucial technologies across power, industry, CO2 transport, and promising developments in carbon removal.Deploying Carbon Capture Technologies at Point Sources In the US power sector, the deployment of carbon management will play an essential role in addressing emissions from existing power plants, where fossil fuel generation currently provides around 60 percent of total power. Looking forward, carbon capture deployment in the power sector will provide flexible, low-emissions energy resources in regions with growing shares of renewable energy sources.&nbsp; The Biden administration has recognized the role that carbon capture will play across emitting facilities. In April, the administration published final rules to regulate greenhouse gas emissions from existing coal-fired and new natural gas power plants. In the rule, EPA recognizes carbon capture technologies as a key climate mitigation tool to reduce CO2 emissions and criteria air pollutants from coal and natural gas electric generating units. Additionally, carbon management technologies are not optional for decarbonizing the industrial sector. According to EPA emissions data, the industrial sector is responsible for 30 percent of domestic emissions when associated emissions from electricity use at industrial facilities are included. Nearly half of industrial emissions occur in just three sectors: steel, cement, and basic chemicals. These sectors provide the essential building blocks for modern lifestyles and provide family-sustaining jobs.&nbsp; Certain industrial processes have limited or no emissions reduction strategies beyond carbon capture. This is for two primary reasons. First, the industrial sector relies on fossil fuels to provide high-temperature heat that cannot be easily substituted with renewable sources. Additionally, many industrial processes directly emit CO2, meaning these emissions are directly produced and emitted by the chemical or physical conversion of raw materials into finished goods and cannot be abated without carbon capture. These so-called process emissions are responsible for approximately one-quarter of the emissions from the industrial sector.Developments in Direct Air Capture and CO2 Transport&nbsp; Direct Air Capture (DAC) technology directly captures carbon dioxide (CO2) from the atmosphere to store underground or convert into useful products. DAC uses large fans to pass large amounts of ambient air over materials to separate out the carbon dioxide.&nbsp; IRA enhancements to 45Q provide additional incentives to deploy carbon management technologies in higher-cost but absolutely crucial sectors to decarbonize. According to the DAC Coalition, there are approximately 30 operational DAC facilities, ranging from 1 metric ton per year to nearly 40,000 metric tons per year. While this progress is encouraging, to meet net zero emissions by midcentury, according to the International Energy Agency, this nascent but important sector must be scaled up globally to capture more than 85 million tons of CO2 per year in 2030 and nearly 1 gigaton (or billion tons) of CO2 per year by 2050. Programs like DOE’s investment of $3.5 trillion into Regional DAC Hubs will help jumpstart the industry by creating regional hubs for direct air capture technologies.&nbsp; Last but not least, one critical piece links all the steps from capturing CO2 from facilities or the air to storing it underground or reusing it in new products: transport infrastructure. CO2 pipelines are the backbone of the economywide deployment of carbon management technologies across the United States.&nbsp; The continued safe operation of CO2 pipelines is paramount as the industry expands. With over 5,000 miles of CO2 pipelines in operation, incidents are rare, and the industry has maintained an excellent safety record, according to a new issue brief from the Great Plains Institute. However, as carbon management projects grow, we must ensure the continued safe operation of these systems. To that end, the federal Pipeline and Hazardous Materials Safety Administration (PHMSA) is working on updated regulations to ensure safety standards as this network expands as additional capture and removal facilities come online. As the nation continues to invest in carbon management technology, ensuring the safety of CO2 pipelines is crucial. The forthcoming PHMSA regulations and federal funding efforts must continue the commitment to building a safe and sustainable carbon transport infrastructure. In parallel, the BIL provided DOE $2.1 billion through the Carbon Dioxide Transportation Infrastructure Finance and Innovation Act (CIFIA) to offer access to capital for large-capacity, common-carrier carbon dioxide transport projects. To meet net zero emissions by midcentury, we must see a networked system of CO2 pipelines transporting CO2 from emitting sources or the air, to secure geologic storage. Conclusion The Inflation Reduction Act, coupled with the groundbreaking investments made in the Bipartisan Infrastructure Law, is a historic step forward in fostering the economywide deployment of carbon management technologies. These technologies are necessary to achieve midcentury emissions reduction targets while safeguarding high-wage jobs that sustain families and communities and ensuring the long-term viability of key domestic industries. Reflecting on the impact of these laws, one thing is clear — the passage of these laws marked the beginning, not the end, of necessary efforts to build the portfolio of policies for carbon management technologies and fulfill the promise of this landmark legislation. &nbsp;Authors: Leo Duke, Coalition Coordinator at Carbon Capture Coalition Diana Leane, Communications and Public Relations , Strategist at Carbon Action Alliance <a href="mailto:dleane@gpisd.net ">dleane@gpisd.net&nbsp;</a>&nbsp;Featured in Issue 2, 2024 of Carbon Capture Magazine

2024-10-21 - Broad & Bipartisan Backing (Carbon Capture Magazine)

Drivers to Enabling Economywide Deployment of Carbon Management Technologies 

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Carbon Capture Magazine - Issue 2 2024