The Role of Carbon Capture in Delivering Net-Zero Emissions
This blog was written by guest contributor, Lee Beck, CCUS Policy Innovation Director, Clean Air Task Force.
In July, Young Professionals in Energy New York City hosted a panel discussion on the role of carbon capture, utilization and storage (carbon capture) in climate change mitigation on the path to net-zero emissions. Speakers included:
Bala Nagarajan, Investment Director, Equinor Ventures
Jessie Stolark, Public Policy & Member Relations Manager, Carbon Capture Coalition
The discussion was moderated by Lee Beck, CCUS Policy Innovation Director, Clean Air Task Force.
Carbon capture technologies trap the CO2 from energy-intensive industries such as steel, cement, and power plants, and store them deep underground. Taking note that institutions such as the International Energy Agency (IEA) and the Intergovernmental Panel on Climate Change (IPCC) have put forward that carbon capture technologies are needed to deliver on net-zero emissions targets by mid-century, the panelists discussed carbon capture’s different applications, its role in climate change mitigation, and its available paths for overcoming technical and business model challenges.
According to the IEA, some 2000 carbon capture facilities are expected to be needed to meet climate and sustainable development goals. Today, there are 20 operating, large-scale facilities globally.
In the US, there are currently more than 30 carbon capture projects in various stages of development and applications including cement, fertilizer, and power generation, according to a carbon capture project map released by the Clean Air Task Force and presented by Lee Beck during the panel introduction. The projects are, to a large extent, a result of the recently expanded 45Q tax credit for carbon capture, which now provides $50 a ton of CO2 for geologic storage, and $35 a ton for CO2 stored via enhanced oil recovery (EOR) and non-EOR utilisation.
Policies like 45Q are vital to making the business case for investment in carbon capture projects, but a lot more needs to be done. Specifically, a meaningful carbon price could significantly accelerate the deployment of large-scale carbon capture facilities, said Equinor’s Bala Nagarajan. He also noted that the global average carbon price currently hovers around $2 per tonne of CO2, which is far from what experts believe is required to accelerate emissions reductions. Equinor, which operates a successful offshore wind business globally and runs two carbon capture projects in Norway, is slated to invest in the Northern Lights project to safely and permanently store CO2 from industrial facilities from all across Europe in the North Sea. The project, which is developed in partnership between Equinor, Shell, Total, and the Norwegian government, is expected to offer significant learnings for the rest of the world on offshore CO2 storage, business model development, and large-scale carbon management.
Alongside incentives like 45Q, it will also be important to plan and invest in carbon management infrastructure, including CO2 transportation options and geologic storage, explained Jessie Stolark citing a newly released-study by the Great Plains Institute. The study provides insight into ways to optimize carbon management infrastructure, including minimizing cost and environmental footprint to meet mid-century decarbonization goals. Stolark also pointed out the economic benefits of carbon capture, noting that a single carbon capture plant can create hundreds of high-paying, high-quality jobs in manufacturing, construction, and operation.
Martin Keighley who runs Carbonfree Chemicals, a company that provides CO2 and other pollutant capture and utilization technologies, elaborated on the role of CO2 utilization (CCU) in commercializing carbon capture technologies. CCU utilizes captured CO2 for marketable products, thus creating market demand for CO2, which is particularly important in light of an absent meaningful carbon price. Marketable products include baking soda, aggregates, fuels, and more. CCU can be a viable option to reduce emissions from energy-intensive industries in areas with limited CO2 transportation and saline storage potential. However, its overall CO2 storage potential is significantly smaller compared to geologic storage options.
Questions from the audience prompted further discussion on policies, business models, and carbon capture applications on the path to net-zero emissions by mid-century. You can click here to view the full discussion, along with audience follow-up questions.
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On behalf of YPE NYC, we’d like to thank Lee Beck for contributing to our blog! We’d also like to thank Samuel Bordenave, a YPE NYC events director, for organizing the panel of carbon capture experts mentioned above.
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