Decarbon Daily - Issue for July 30, 2021
Inside this issue
Thank you for joining this week! If you have a question or comment, please do not hesitate to hit reply. I read & respond to every comment!
The message from Tuesday mentioned Baker Hughes earnings call comments on the carbon capture utilization and storage market. Baker is tracking 21 projects globally. However, I'm tracking 28 projects globally and 11 CCS facility projects in the United States. From other industry contacts, I'm expecting at least 5-10 more facilities to be announced in 2021.
Large Energy companies like ExxonMobil, Valero, and Baker Hughes along with private equity, corporate agriculture, and others are aggressively commercializing CCS to earn tax credits and gain early mover advantages.
The 2021 announced projects are taking place in opportunistic areas in the midwest, gulf coast, and west coast. Each region has potential advantages due to current industry and infrastructure. The table below outlines the projects announced in 2021 in the USA.
| CCS Project | State | Capacity (tons/year)|
| ----------- | ----------- | ----------- |
| Aemetis Carbon Capture | CA | 1.6 million |
| Green Plains (5 facilities) | NE | 1.9 million |
| Houston Ship Channel CCS | TX | not announced |
| Navigator CO2 (2 facilities) | IL | 12 million |
| Redding Cement Plant | CA | 0.8 million |
| Summit Carbon Solutions | ND | 8.0 million |
The two California facilities will likely be able to take advantage of both the state Low Carbon Fuel Storage credit and federal IRS 45Q. This pushes the tax credit to ~$250 per metric ton of carbon capture and storage.
The facilities outside of California will likely only be able to take advantage of the federal IRS 45Q, which is ~$50 per metric ton of carbon capture and storage.
Aemetis is partnering with Baker Hughes for injection wells at their facility and currently have plans to develop an expanded CO2 pipeline to reach additional dairy farms. Aemetis converts the dairy waste gas into renewable natural gas. The company expects to sequester nearly 2 million tons from the biofuels plants.
Articles in this issue