Report Examines Federal, State, And Regional Opportunities For Investors to Consider

Carbon capture and storage projects are rapidly emerging as lucrative investment opportunities, due to a combination of federal and state tax credits and other incentives. But for states, counties, utilities, and corporations seeking to meet carbon emission reduction goals—and for the investment community seeking to fund these projects—it can be difficult to understand and apply the various incentives that exist. A new report from the United States Energy Association (USEA) and the US Department of Energy (DOE), prepared by Orrick and FTI Consulting, offers insights into these complexities.

Incentives for renewable energy technology are well-documented. This report outlines tax and non-tax incentives for carbon capture, utilization, and sequestration (CCUS)—another vital climate tool to help achieve carbon-neutral goals. The United States has become a global leader in CCUS, attributable to robust policy support, private sector engagement, and the availability of geological storage. Ten of the 21 large-scale CCUS projects operating across the globe are hosted by the United States, and here within the country there are more than 30 projects in development.

"Carbon capture, utilization, and storage technology can significantly lower emissions and be an integral part of reaching global greenhouse gas targets, if these CCUS projects can get over the finish line,” says Michael Moore, USEA Program Director. “This sector—with the 45Q tax credit—is the next place the investment community is considering."

Beyond the comprehensive analysis of federal and state incentives, the report provides a candid assessment of roadblocks preventing more widespread investment in CCUS projects—including government and regulatory hurdles, market potential, technical improvements, and public perception. The authors also present three case studies that identify the value of the various incentive mechanisms that exist to help pioneering projects become viable.

This report will be of particular interest to:

• Tax equity investors (corporations with a significant federal income tax base, financial institutions, commercial banks, private equity firms, and insurance companies)
• Industrial facilities looking to reduce their carbon emissions, as well as shareholders and boards seeking to meet corporate responsibility goals
• States seeking to attract business investment
• Industries seeking to relocate
• Attorneys with clients in environmental mitigation and land/mineral rights
• Federal and state regulatory and legislative agencies
• Project developers, energy infrastructure contractors

Join report authors and representatives from USEA and DOE in a webinar on October 1 at 1:00pm Eastern to discuss the emerging opportunities—and hurdles—for investment in CCUS technology. Register now.