![]() ethanol facility by accounting for existing government incentives and the potential uplift of voluntary carbon markets. Here we analyze an economic framework for a CCS project in a U.S. A robust economic framework should facilitate the effective allocation of resources, the development of supportive policies, and mitigation of operational and financial risks, ultimately accelerating the deployment of CCS projects at a pace necessary to achieve climate targets. Understanding the economics of CCS projects for various industries will not only guide investment decisions, but also enable policymakers, investors, and project developers to better assess the financial feasibility, risks and benefits associated with these projects. This underlines the necessity of understanding the economics of CCS projects to ensure that policy measures and investments are effectively aligned. However, despite the recent surge in CCS project announcements, a majority have yet to reach the final investment decision (FID) stage, as outlined in the recent Net Zero Roadmap report by the IEA. following the signing of federal incentives of the Infrastructure Investment and Jobs Act (IIJA) and Inflation Reduction Act (IRA). In this commentary series, we will explore the economic pathways for carbon capture and storage (CCS) projects, beginning with “credit stacking” voluntary carbon market credits and Section 45Q tax credits, with additional pieces on both the California-based Low Carbon Fuel Standard and Section 45Z tax credit.ĬCS has been at the forefront of decarbonization commitments in public and private sectors, with the development of CCS projects rapidly accelerating in the U.S. As RTE injects a fraction of the annual volume of CO 2 compared to ADM (<20% in 2022 as reported on the EPA Subpart RR), monetization pathways are critical without the same economy of scale available to ADM. RTE is the United States’ second carbon sequestration project utilizing an EPA Underground Injection Control (UIC) Class VI well, after Archer Daniels Midland’s (ADM) project in Decatur, IL. Last month, Red Trail Ethanol (RTE) announced their partnership with Puro.earth, a carbon crediting platform focused on engineered carbon removal that has an established Geologically Stored Carbon Methodology to certify actual carbon removal associated with long-term, subsurface storage of carbon dioxide. By Anna Littlefield, Siew Chiang, and Mike Matson
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