Key policy actions needed to scale up carbon capture and storage


Proven potential

Carbon capture and storage (CCS) is one of the few proven technologies with the potential to significantly reduce emissions from certain hard-to-decarbonize sectors, such as manufacturing and heavy industry. We have a concept for a CCS hub along the Houston Ship Channel, which has the potential to capture about 100 million metric tons of CO2 annually by 2040 and could help Houston achieve its net-zero goal. However, new policies are needed to spur the investment required to deploy CCS at such a pace and scale. To move forward in Houston, these key and immediate actions are required:

Enhance the CCS Production Tax Credit (45Q) for non-EOR (enhanced oil recovery)

  • Initially increase value to ~$100 per metric ton from current $50
  • Extend eligibility period to 30 years from current 12 years
  • Eliminate deadline for starting construction

Provide financial support for CCS infrastructure

  • Provide a $10 billion grant to help develop infrastructure in Houston by extending current U.S. Department of Energy programs beyond research, development and demonstration (RD&D)
  • Expand the U.S. Department of Energy Title XVII program to include the deployment of existing CCS technologies at scale
  • Amend TIFIA (Transportation Infrastructure Finance and Innovation Act) to add CCS projects, or create a program dedicated to CCS

Ensure government approval for CO2 storage

  • Specifically allow offshore storage of CO2 from sources other than coal
  • Authorize the Bureau of Ocean Energy Management to issue leases, rights of way and pore space
  • Clarify that the U.S. Environmental Protection Agency has authority for permitting CO2 injection in subsea formations