CONSENSUS: Carbon Management and Energy Transition Projects - an Economic Opportunity for Kansas
The current national target is to reduce CO2 emissions by three gigatons per year until 2050, increase power grid sustainability and capacity, and provide sufficient power generation and infrastructure for electric vehicles. Based on analyses by Black Rock and other investment funds, carbon management, hydrogen, critical minerals development, and related technologies are part of a projected $130 trillion market revolution.
In planning for this market revolutions, energy transition hubs and clusters are repeating themes that have evolved through collective strategizing by DOE, industry, and academia. There is a vision that leveraging government initiatives and private investment can fuel technology development, link urban and rural economies, and create new opportunities in regions beyond a current handful of high-growth centers. These activities would support community-led redevelopment projects that can spark economic activity, provide services and amenities, build community wealth, and close current gaps in access to the Innovation Economy for minority and rural communities that have suffered from decades of disinvestment and neglect.
There are several new technologies that the Kansas Geological Survey has worked on in recent years, including carbon management, hydrogen storage, critical minerals, and others. The energy transition concept includes combining these new technics and growing industries for enhanced economic benefits and more sustainable energy and commodities production. One of the proposed industrial hub concepts is the conversion of a decommissioned coal power plant to a hydrogen generation facility that will supply a local electricity grid or retail market with a new type of fuel. CO2 emissions will then be captured and utilized to produce cement or polymers for 3D printed houses.
Interest in new carbon management applications, such as the above, is growing due to several events and trends that produce a fertile environment for new business models. Updates and further guidance to the “45Q” tax incentives have clarified the process for obtaining tax credits for utilization and sequestration. California updated its Low Carbon Fuel Standards (LCFS) to include incentives for carbon capture, utilization, and storage (CCUS) demonstrating how states can catalyze CCUS and its secondary benefits. This briefing will provide a glimpse into a decarbonized and environmentally and economically just and prosperous future!