New Bills In U.S. Senate Would Bolster Efforts To Store Carbon Underground

New Bills In U.S. Senate Would Bolster Efforts To Store Carbon Underground

A carbon capture unit attached to an industrial facility. A pair of new bills in the U. S. Senate aims to bolster the nascent carbon capture and storage industry, as oil and gas companies increasingly embrace the technology to achieve emissions reduction targets. One new bill, introduced this week, would strengthen an existing tax credit known as 45Q that lets companies take a deduction for every ton of carbon sequestered from the air and stored underground, either permanently or as part of the extraction process for liquids such as crude oil. The new bill extends by five years until 2030 the window for carbon capture and storage (CCS) projects to begin construction and qualify for the 45Q tax credit. The bill also increases the value of the 45Q credit from $50 to $120 per metric ton of CO2 captured and stored in saline geologic formations, and from $35 to $75 for CO2 captured and stored in oil and gas fields or used in the processing of fuels, chemicals or other products. The bill, called the Carbon Capture Utilization and Storage Tax Credit Amendments Act, has support from a bipartisan group of senators, according to the Carbon Capture Coalition, including Chuck