Fueling the Future: Kinder Morgan's Role in Reducing Emissions and Generating Cash Flow
CCUS Economics are Improving but Remain Challenged
CURRENT ESTIMATED U.S. CARBON CAPTURE COST $/tonne
$140
$120
Additional technological advancements
& government policy could advance
CCUS economics for other facilities
$100
$80
$60
$40
$20
Given 45Q credits, CCUS
could be economic for
ethanol production, natural
gas processing, and natural
gas treating facilities
$0
ethanol
production
facility
large
natural gas
processing
& treating
facilities
45Q tax credits
small
natural gas
processing
& treating
facilities
coal fired
ammonia
power plant production
facility
cement hydrogen
production production
facility
facility
natural gas
fired power
plant
Source: KM analysis, National Energy Technology Laboratory.
Note: Estimated costs are based on 20% BFIT IRR at capture unit tailgate, no tax credits, and at pressure ready for pipeline.
KINDER MORGAN
45Q TAX CREDITS
Capturer controls the tax credit
Industry still contemplating economics across the value
chain
Proposed direct pay option could be a catalyst for CCUS
SEQUESTRATION
$50/tonne deductible tax credit starting in 2027
Lengthy EPA permitting process; only 2 permits ever
issued
States considering regulatory primacy to shorten permitting
process, including Texas
Our source fields in Colorado could potentially be used for
sequestration in the future
EOR
$35/tonne tax credit (beginning in 2027) is lower than for
sequestration, but more feasible today
Our 1.5 bcfd Cortez pipeline delivers ~80% of the CO2
used for Permian EOR
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