Economic Potential of DACCS and Global CCS Progress
DIVERSE PARTNERSHIPS PROMOTE CCS DEPLOYMENT
Significant momentum for CCS project developments and announcements in various
sectors continues. The high level of activity related to CCS project developments is
likely due to a number of reasons that include collaboration and partnerships between
companies with differing capabilities and requirements in the CCS value chain; policy
changes such as enhanced 45Q tax credits; and innovative pipeline service changes
from natural gas to CO2 transport conversions. Examples of some these innovative
projects include:
•
•
Talos Energy, Carbonvert, and Chevron announced an expanded joint venture to
develop the Bayou Bend CCS hub, with Talos being the operator. (23)
NEXT Carbon Solutions and California Resources Corporation jointly announced an
agreement to explore further the decarbonisation of CRC's Elk Hills Power Plant. The
companies seek to capture and utilise the emissions from the Elk Hills Power Plant for
permanent storage in oil-producing reservoirs. (24)
• Carbon America will finance and operate systems to capture and store underground
95 per cent of CO2 emissions from two Colorado ethanol plants. (25)
•
Tallgrass plans to convert its Trailblazer natural gas pipeline to transport CO2 captured
from a carbon capture project at an ADM corn processing complex in Nebraska. The
400 mile (644 km) pipeline expands the reach of its Eastern Wyoming Sequestration
Hub. (26)
⚫ The Red Trail Energy CCS project at its ethanol facility near Richardton, North Dakota,
is officially operating. The project is the first in the US to operate under a state-led
regulatory authority for carbon storage (27). The Red Trail project was aided by
benefits from the 45Q tax credit.
•
•
More companies announced support for the massive proposed carbon capture and
storage hub in the Houston Ship Channel, bringing the number of industrial facilities
to 14. (28)
Occidental plans to build 70 - 135 carbon capture facilities by 2035. The facilities are
expected to each remove as much as 1 Mtpa of CO2 directly from the atmosphere.
(29)
DEVELOPMENTS IN BRAZIL
Brazil hosts an operating CCS facility in the Santos Basin where Petrobras continues
progressing toward its goal of injecting 40 million tonnes of CO2 by 2025. Significant
policy developments regarding CCS deployment occurred in 2021 and 2022 in Brazil.
In addition to updating its NDC, significant legislation was introduced into Brazil's
legislature (30). Bill 1.425/2022 establishes a legal framework for the geological storage
of carbon dioxide, addressing pore space property rights, long-term responsibilities
and its transfer from private to public agent, the definition of regulatory agencies, and
the period of monitoring. (31)
Additionally, Decreto 11.075/2022 establishes the procedures for the preparation of
"Sectoral Plans for Mitigation of Climate Change" and sets the National System for the
Reduction of Greenhouse Gas Emissions (31).
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GLOBAL CCS
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