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Carbon capture and sequestration (or storage)—known as CCS—is a process that involves capturing man-made carbon dioxide (CO2) at its source and storing it permanently underground. (CCS is sometimes referred to as CCUS—carbon capture, utilizationutilization, and storage.) CCS could reduce the amount of CO2—an important greenhouse gas—emitted to the atmosphere from the burning of fossil fuels at power plants and other large industrial facilities.
Globally, two fossil-fueled power plants currently generate electricity and capture CO2 in large quantities: the Boundary Dam plant in Canada and the Petra Nova plant in Texas. Both plants retrofitted post-combustion capture technology to units of existing plants. A third fossil-fueled electricity-generating operation, the Kemper County Energy Facility in Mississippi, was scheduled to begin CCS operations by now, but cost overruns and delays in construction and operations led to the suspension of the plant's CCS component on June 28, 2017.
Each of the power plants using CCS systems may be referred to as a demonstration project, or a nearly first-of-its-kind venture using technologies developed at a pilot scale ramped up to commercial scale. Such projects move through many phases, from the initial research and development (R&D) phase through the final commercial deployment phase. It is not unusual for projects in the demonstration phase of this process to experience higher-than-anticipated costs, delays, and other challenges. Several other U.S. Department of Energy (DOE)-supported demonstration projects, such as FutureGen, the AEP Mountaineer project, and the Hydrogen Energy California Project, among others, faced challenges that led to their cancellation or suspension. Given the mixed success of large CCS projects in the United States, the economic viability of, and the commercial interest in, such projects remains uncertain.
The U.S. Department of Energy has long supported R&D on CCS within its Fossil Energy Research and Development (FER&D) portfolio. The Trump Administration proposed to cut FER&D funding substantially in its FY2018 budget request. The Trump Administration's proposal differs from the policy trends of the previous two Administrations, which supported R&D on CCS and emphasized the development of large-scale demonstration projects to evaluate how CCS might be deployed commercially. Some in Congress have signaled continued support for DOE's R&D efforts with respect to CCS. The House Energy and Water Development appropriations draft legislation would support CCS R&D at a level comparable to that in FY2017, for example ($635 million versus $668 million enacted for FY2017). The Senate version of the bill would fund FER&D at $573 million in FY2018, $95 million less than in FY2017 but $293 million more than the Administration request. In addition, some Members of Congress have continued to introduce legislation in the 115th Congress intended to advance CCS. These bills include H.R. 2010, H.R. 2011, H.R. 2296, S. 843, S. 1068, S. 1535, and S. 1663. Two of these bills, S. 1663 and S. 1068, were offered as amendments to tax reform legislation (the Tax Cuts and Jobs Act) under consideration in the Senate Finance Committee.
The Obama Administration commissioned a CCS task force, which concluded in 2010 that the largest barrier to long-term demonstration and deployment of CCS technology is the absence of a federal policy to reduce greenhouse gas emissions. The task force further concluded that widespread deployment of CCS would occur only if the technology is commercially available at economically competitive prices. None of those factors appear to be in place currently, which may indicate that demonstration and deployment of industrial-scale CCS will be delayed compared to earlier projections, pending future policy, technological, and economic developments.
The U.S. Department of Energy (DOE) has funded research and development (R&D) of aspects of CCS since 1997 within its Fossil Energy Research and Development (FER&D) portfolio. Since FY2010, Congress has provided more than $5 billion total in appropriations for DOE CCS-related activities. The Trump Administration proposed to reduce FER&D funding substantially in its FY2018 and FY2019 budget requests, but Congress has not agreed to the proposed reductions. In FY2018, Congress increased funding for DOE FER&D by nearly $59 million (9%) compared to FY2017, and the House- and Senate-passed appropriations bills for FY2019 would match or increase the appropriated amount compared to what Congress enacted for FY2018 ($727 million). The Petra Nova plant in Texas is the only U.S. fossil-fueled power plant currently generating electricity and capturing CO2 in large quantities (over 1 million tons per year). Globally, the Boundary Dam plant in Canada is the only other large-scale fossil-fueled power plant with CCS. Both facilities retrofitted post-combustion capture technology to units of existing plants, and both offset a portion of the cost of CCS by selling captured CO2 for the purpose of enhanced oil recovery (EOR). Some CCS proponents point to the expanded Section 45Q of the Internal Revenue Code tax credits for CO2 capture and sequestration or its use as a tertiary injectant for EOR or natural gas production that were enacted as part of P.L. 115-123 as a significant step toward incentivizing more development of large-scale CCS deployment like Petra Nova and Boundary Dam. A number of bills introduced in the 115th Congress potentially would affect CCS in the United States. Several bills or provisions of bills address the Section 45Q tax credits (S. 1535, S. 1663, S. 2256, H.R. 1892, H.R. 2010, H.R. 3761, H.R. 4857). H.R. 1892, the Bipartisan Budget Act of 2018, enacted into law as P.L. 115-123, amended Section 45Q and increased the amount of the tax credit from $20 to $50 per ton of CO2 for permanent sequestration, increased it from $10 to $35 for EOR purposes, and effectively removed the 75 million ton cap on the total amount of CO2 injected underground, among other changes. Some proponents suggest that enactment of this provision could be a "game changer" for CCS, leading to more widespread adoption of the technology, although others question whether the increased incentives are large enough to affect CCS deployment. Other bills address a suite of measures to advance CCS. Several would provide additional financial incentives, such as tax-exempt private activity bonds, and provisions that would enable eligibility of master limited partnerships for CCS infrastructure projects (S. 843, S. 2005, H.R. 2011, and H.R. 4118). One bill (S. 2602) could help advance CCS by making CCS infrastructure projects eligible under the FAST Act (42 U.S.C. 4370m(6)). Other bills (S. 2803, S. 2997, H.R. 2296, H.R. 5745) would support increased R&D for CCS, carbon utilization technologies, and direct air capture of CO2. One bill (H.R. 4096) would authorize a $5 million prize to promote advances in CCS technology research and development. There is broad agreement that costs for CCS would need to decrease before the technologies could be deployed commercially across the nation. The issue of greater CCS deployment is fundamental to the underlying reason CCS is deemed important by a range of proponents: to reduce CO2 emissions (or reduce the concentration of CO2 in the atmosphere) and to help mitigate against human-induced climate change.Carbon capture and sequestration (or storage)—known as CCS—is a process that involves capturing man-made carbon dioxide (CO2) at its source and storing it to avoid its release to the atmosphere. (CCS is sometimes referred to as CCUS—carbon capture, utilization The concept of carbon utilization has gained interest within Congress and in the private sector as a means for capturing CO2 and converting it into potentially commercially viable products, such as chemicals, fuels, cements, and plastics, thereby reducing emissions to the atmosphere and helping offset the cost of CO2 capture. Direct air capture is also an emerging technology, with the promise to remove atmospheric CO2 directly and reduce its concentration.
The U.S. Department of Energy (DOE) has long supported research and development (R&D) on CCS within its Fossil Energy Research and Development portfolio (FER&D). Since FY2010, Congress has provided more than $5 billion in total appropriations for CCS activities within DOE FER&D (not including the one-time appropriation of $3.4 billion provided for CCS in the American Recovery and Reinvestment Act of 2009, P.L. 111-5). The U.S. Department of Energy (DOE) has long supported research and development (R&D) on CCS within its Fossil Energy Research and Development portfolio (FER&D); however, the Trump Administration proposed to cut FER&D funding substantially in its FY2018 budget request In recent years, utilization as part of CCUS increasingly has been viewed as a potentially important component of the process. Utilization refers to the beneficial use of CO2 as a means of mitigating CO2 emissions and converting it to chemicals, cements, plastics, and other products.2 (This report uses the term CCS except in cases where utilization is specifically discussed.)
The Trump Administration's proposal to curtail funding for CCS, coupled with the successful launch of one large CCS plant in January 2017 (the Petra Nova plant in Texas) and the suspension of another in June 2017 (the Kemper County Energy Facility in Mississippi), has contributed to uncertainty about the future of CCS. This report provides a summary and analysis of the current state of CCS in the United States.
Globally, two fossil-fueled power plants currently generate electricity and capture CO2 in large quantities: the Boundary Dam plant in Canada and the Petra Nova plant. Both plants retrofitted post-combustion capture technology to units of existing plants. (The different types of carbon capture technologies are discussed in "CCS Primer.") A third fossil-fueled electricity-generating operation, the Kemper County Energy Facility, was scheduled to begin CCS operations by now, but cost overruns and delays in construction and operations led to the suspension of the plant's CCS component on June 28, 2017.2 Unlike the two retrofitted plants, Kemper was built from scratch with a precombustion integrated gasification combined cycle (IGCC) system. These three plants are discussed below.3
The Petra Nova–W.A. Parish Generating Station is the first industrial-scale coal-fired electricity-generating plant with CCS to operate in the United States. On January 10, 2017, the plant began capturing approximately 5,000 metric tons of CO2 per day from its 240-megawatt-equivalent slipstream using post-combustion capture technology.4 The capture technology is approximately 90% efficient (i.e., it captures about 90% of the CO2 in the exhaust gas after the coal is burned to generate electricity) and is projected to capture between 1.4 million and 1.6 million tons of CO2 each year.5 The captured CO2 is transported via an 82-mile pipeline to the West Ranch oil field, where it is injected for enhanced oil recovery (EOR).6 NRG Energy, Inc., and JX Nippon Oil & Gas Exploration Corporation, the joint owners of the Petra Nova project, together with Hilcorp Energy Company (which handles the injection and EOR), expect to increase West Ranch oil production from 300 barrels per day before EOR to 15,000 barrels per day after EOR.7
DOE provided Petra Nova with more than $160 million from its Clean Coal Power Initiative (CCPI) Round 3 funding, using funds appropriated under the American Recovery and Reinvestment Act of 2009 (Recovery Act; P.L. 111-5) together with other DOE FER&D funding for a total of more than $190 million of federal funds for the $1 billion retrofit project.8 Petra Nova is the only CCPI Round 3 project that expended its Recovery Act funding and is currently operating.9 The three other CCPI Round 3 demonstration projects funded using Recovery Act appropriations, (as well as the FutureGen project—slated to receive nearly $1 billion in Recovery Act appropriations) all have been canceled, have been suspended, or remain in development.10
The Petra Nova plant is projected to capture more CO2 per year than the other currently operating power plant with CCS, Canada's Boundary Dam (which captures about 1 million tons per year; see "Boundary Dam: World's First Addition of CCS to a Large Power Plant," below). Petra Nova also generates more electricity than Boundary Dam, about 240 megawatts compared to Boundary Dam's 115 megawatts. Both projects retrofitted one unit of much larger multi-unit electricity-generating plants. The Petra Nova project retrofitted Unit 8 of the W.A. Parish power plant, which in total consists of four coal-fired units and six gas-fired units, comprising more than 3.7 gigawatts of gross capacity, making it one of the largest U.S. power plants.
In 2015, the entire W.A. Parish complex emitted nearly 15 million tons of CO2 from all of its generating units.11 The Petra Nova project reduces CO2 emissions overall from the entire complex by about 11%. By comparison, in 2015, total U.S. CO2 emissions from the electricity-generating sector were about 1.9 billion tons.12 The Petra Nova project would reduce that total by a small percentage (about 0.08%). However, according to DOE, a purpose of Petra Nova was to demonstrate that post-combustion capture and reuse can be done economically for existing plants when there is an opportunity to recover oil from nearby oilfields. DOE also has stated that the success of Petra Nova has the potential to enhance the long-term viability and sustainability of coal-fueled power plants across the United States and throughout the world.13
On June 28, 2017, Southern Company and its subsidiary Mississippi Power announced they were suspending the start-up of the coal gasification component of their Kemper County Energy Facility,14 a precombustion technology that would combine IGCC with CCS to capture CO2 and transport the gas for EOR at a nearby oilfield. The suspension of operations comes after several years of cost overruns and delays; total costs escalated to more than $7 billion from approximately $2.67 billion, and the original target start-up date was 2014.15 The plant will continue to generate electricity from burning natural gas, according to Southern Company, pending a decision from the Mississippi Public Service Commission on future operations.16
DOE supported the Kemper County plant with a $270 million award for the development and deployment of a gasification technology called Transport Integrated Gasification (TRIGTM), under a cooperative agreement as part of the CCPI Round 2 program. The $270 million award represented approximately 10% of what DOE had reported as the overall cost to build the plant, approximately $2 billion.17 At the time of the award, the plant was expected to have an estimated peak net output capability of 582 megawatts and was designed to capture 65% of the total CO2 emissions released.18 According to DOE, that would have made the CO2 emissions from the Kemper project comparable to emissions from a natural gas-fired combined cycle power plant. The estimated 3 million tons of CO2 captured each year from the plant were to be transported via pipeline for use in EOR operations at nearby depleted oil fields in Mississippi.
The Mississippi Public Service Commission approved the project, subject to a cap on total costs of $2.9 billion.19 Construction began in 2010.20 Some observers attribute the cost escalation and project delays to a combination of increased piping, materials, and labor costs due to resizing and re-scoping of the original design of the CCS component.21 In addition, Kemper's status as a first-of-its kind facility likely contributed to cost overruns and construction delays.
Suspension of the Kemper County plant increases uncertainty about the future of large CCS projects at coal-fired power plants in the United States and, by extension, into the future of coal. Kemper is not the first large, DOE-supported CCS demonstration project to hit roadblocks leading to delay and even cancellation.22 The Trump Administration has signaled that it will not support large CCS demonstration projects in its FY2018 budget request, proposing to substantially reduce CCS funding and refocus its entire FER&D portfolio on "early-stage" research.23 The House Appropriations Committee's FY2018 bill funding DOE disagrees with the Administration budget request and would fund CCS activities at roughly FY2017 levels. However, suspension of the Kemper County Energy Facility might affect budget negotiations if, as some CCS critics suggest, it signals a deeper problem with the viability of CCS at fossil-fuel-burning power plants generally.24
The Boundary Dam project was the first commercial-scale power plant with CCS in the world to begin operations. Boundary Dam, a Canadian venture operated by SaskPower,25 cost approximately $1.3 billion according to one source.26 Of that amount, $800 million was for building the CCS process and the remaining $500 million was for retrofitting the Boundary Dam Unit 3 coal-fired generating unit. The project also received $240 million from the Canadian federal government. Boundary Dam started operating in October 2014, after a four-year construction and retrofit of the 150-megawatt generating unit. The final project was smaller than earlier plans to build a 300-megawatt CCS plant, but that original idea may have cost as much as $3.8 billion. The larger-scale project was discontinued because of the escalating costs.27
Similar to the Petra Nova project discussed above, Boundary Dam captures, transports, and sells most of its CO2 for enhanced oil recovery, shipping 90% of the captured CO2 via a 41-mile pipeline to the Weyburn Field. CO2 not sold for EOR is injected and stored about 2.1 miles underground in a deep saline aquifer at a nearby experimental injection site. By March 2017, the plant had captured almost 1.5 million metric tons of CO2 since full-time operations began in October 2014.28 The 115-megawatt (net) plant plans to capture at least 1 million tons of CO2 per year.29
Some observers contend that Boundary Dam has yet to meet its expectations for capture efficiency, cost, and availability.30 Some technical and operational issues that reduced the amount of CO2 captured after start-up were reported in 2016, and these issues led to shortfalls in delivery of CO2 to the utility using the gas for EOR.31 Some reports also indicated that the CCS system consumed approximately 45 megawatts to capture and compress the CO2,32 out of a total capacity of 150 megawatts (approximately 30% reduction, also known as the energy penalty or parasitic load).
Each of the projects discussed above is a demonstration project. Projects move through many phases, from the initial R&D phase through the demonstration phase to the final commercial deployment phase. It is not unusual for projects in the demonstration phase of this process to experience higher-than-anticipated costs, delays, and other challenges, although deploying technologies such as CCS at a commercial scale should provide cost estimates closer to operational conditions than projects at the research or pilot scale. Figure 1 shows a typical cost trend for new technology as it develops from R&D to commercial deployment. It could be argued that the high costs and project delays apparent for the Kemper and Boundary Dam projects reflect the fact that these projects' stage in the process corresponds to the peak of the cost curve in Figure 1.
In recent years, the DOE CCS program (discussed below) has emphasized commercial-scale demonstration projects to better estimate the future costs and technical challenges for CCS. Some CCS critics contend that the gap in time and cost between the "first of a kind" project, such as the three discussed above, and the "Nth of a kind" project—representing projects at the commercial deployment stage—could be decades away and require hundreds of billions of dollars in capital investment.33 Such speculations, however, are highly uncertain, given the possible changes in U.S. and other countries' policies aimed at restricting carbon emissions, as well as technological development, the cost of competing fuels such as natural gas, and other factors. Nevertheless, with the recent suspension of the Kemper project, a near-term estimate of the economic viability of—or even interest in—new, commercial-scale electricity-generating plants with CCS in the United States remains uncertain.
The Senate and the House have seen bills introduced in the last several Congresses that would have tried to foster or shape CCS development in the United States. This trend has continued in the 115th Congress; several bills have been introduced that would address aspects of CCS. These bills are summarized briefly below.
S. 1535 would amend Section 45(Q) of the Internal Revenue Code to increase the tax credit from $20 per ton to $50 per ton for capture and permanent storage of CO2 and from $10 per ton to $35 per ton for capture and use of CO2 for EOR. The tax credit amount would ramp up over a 12-year period through 2025, increasing by an inflation factor after that. In addition to CO2 captured from facilities such as power plants and oil refineries, the credit would be available for facilities that capture CO2 directly from the atmosphere (direct air capture). The tax credit also would be available for utilization of CO2, such as through bacteria or algae growth or the conversion of CO2 into a solid material. Facilities and processes that use CO2 to make materials or otherwise use CO2 for any other purpose for which a commercial market exists (other than EOR) through utilization would be eligible for the tax credit.
S. 1068 would make available an investment tax credit for qualified CCS equipment that is installed at an electricity-producing facility and captures at least 50% of the CO2 emissions at the facility that otherwise would have been emitted to the atmosphere. To qualify, the captured CO2 would need to be disposed of in secure geological storage.34
H.R. 2011 and S. 843 would make carbon capture facilities eligible for tax-exempt bonds by amending Section 142 of the Internal Revenue Code. The CCS facility components would be eligible for the tax-exempt bond if the facility captures and stores at least 65% of the CO2 that otherwise would be emitted to the atmosphere. If the facility captures and stores less than 65% of the CO2, the percentage of the cost of CCS components eligible for tax-exempt bonds could not be greater than the capture and storage percentage (i.e., if the facility captures and stores 50% of the CO2, then 50% of the cost of the components would be eligible for the tax-exempt bond).
H.R. 2296 would require the Secretary of Energy to conduct an annual evaluation of every CCS-related project that uses DOE funds for research, development, demonstration, or deployment of CCS technologies (including CO2 utilization technologies).35 The bill would require the Secretary to determine if the project—whether under contract, lease, cooperative agreement, or other similar transaction with a public agency, private organization, or person—has made significant progress in advancing a CCS technology. Based on the determination of whether progress has been made, the Secretary would make a recommendation to increase funding or would determine that the project has reached its full potential and recommend whether the project should continue. The Secretary would be required to report on the recommendations and make the report available to the public, the Senate Committee on Energy and Natural Resources, and the House Committee on Energy and Commerce's Subcommittee on Energy.
H.R. 2010 and S. 1663 would amend Section 45Q(d) of the Internal Revenue Code to require that the Secretary of the Treasury, in consultation with the Secretaries of Energy and the Interior and the Administrator of the Environmental Protection Agency (EPA), establish regulations for the geological storage of CO2. Those regulations would determine compliance for both CO2 injected for EOR purposes and CO2 injected for non-EOR purposes (i.e., permanent geological sequestration). For CO2 injected for EOR purposes, the bill would consider the CO2 disposed of (in secure geological storage) if it is stored in compliance with the rules promulgated by the EPA under subpart UU of 40 C.F.R. Part 98, under the Clean Air Act, and subpart C of 40 C.F.R. Part 146, under the Safe Drinking Water Act, to the extent the rules apply to Class II wells.36
On November 13, 2017, the Senate Committee on Finance began considering legislation entitled the Tax Cuts and Jobs Act, which would make changes to the U.S. tax code. Amendments offered to the legislation include S. 1663, as introduced by Senator Hoeven (amendment offered by Senator Hatch), and S. 1068, the Clean Energy for America Act (amendment offered by Senator Wyden). The tax reform bill being considered in the House, H.R. 1, was reported from the House Ways and Means Committee on November 9, 2017, but did not contain any provisions to use the tax code for CCS that are under consideration in the Senate.
DOE has funded R&D of aspects of the three main steps leading to an integrated CCS system since 1997. Since FY2010, Congress has provided more than $4.3 billion in annual appropriations for CCS activities at DOE. The Recovery Act provided an additional $3.4 billion to that total.37
CCS-focused R&D has come to dominate the coal program area within DOE FER&D since 2010. The Trump Administration's FY2018 budget request, however, would cut the overall FER&D budget by more than half compared to FY2017. The budget request also would reduce CCS-related activities substantially and would refocus nearly the entire R&D portfolio toward "early-stage" research.38 The Trump Administration's approach would be a reversal of Obama Administration and George W. Bush Administration DOE policies, which supported large carbon-capture demonstration projects and large injection and sequestration demonstration projects.
Table 1 shows the funding for DOE CCS programs under FER&D from FY2010 through FY2017 and includes the President's FY2018 budget request. Compared to the FY2017 total of $668 million for all FER&D, the Trump Administration's request of $280 million would be a reduction of approximately 58%. The CCS-focused activities, shown in Table 1 under "Coal CCS and Power Systems," would receive $115 million under the Trump Administration's request, compared to $424 million for FY2017, a 73% reduction.
The June 29, 2017, draft Energy and Water Development and Related Agencies appropriations bill approved by the Energy and Water Subcommittee of the House Appropriations Committee would appropriate $634.6 million for FER&D for FY2018, about $33 million less than the FY2017 amount. On July 20, 2017, the Senate Appropriations Committee approved S. 1609, which would appropriate $572.7 million for FER&D in FY2018, less than the House bill but $293 million more than the Trump Administration request. The House and Senate bills are at odds with the Administration's request, as the legislation likely would continue to fund the range of CCS-related activities within DOE and not just early-stage research.39
Table 1. Funding for DOE Fossil Energy Research, Development, and Demonstration Program Areas
Congress did not accept the Administration's FY2018 request for DOE FER&D and instead increased funding by nearly $59 million (9%) compared to FY2017. In 2018 Congress also enacted legislation (Title II, Section 4119 of P.L. 115-123) that would increase the tax credit for capturing and sequestering or utilizing CO2, leading many observers to predict increased CCS activity as a result. This report includes a primer on the CCS (and carbon utilization) process and discusses the current state of CCS in the United States, as well as the DOE program for CCS R&D and CCS-related legislation in the 115th Congress.
Source: U.S. Department of Energy, Office of Fossil Energy, "Carbon Utilization and Storage Atlas," Fourth Edition, 2012, p. 4. Note: EOR is enhanced oil recovery; ECBM is enhanced coal bed methane recovery. Caprock refers to a relatively impermeable formation. Terms are explained in "CO2 Sequestration." The transport and injection/storage steps of the CCS process are not technologically challenging per se, as compared to the capture step. Carbon dioxide pipelines are in use for EOR in regions of the United States today, and large quantities of fluids have been injected into the deep subsurface for a variety of purposes for decades, such as disposal of wastewater from oil and gas operations or of municipal wastewater. However, the transport and capture steps still face challenges, including economic and regulatory issues, rights-of-way, and questions regarding the permanence of CO2 sequestration in deep geological reservoirs, as well as ownership and liability for the stored CO2, among others. The first step in CCS is to capture CO2 at the source and separate it from other gases. Currently, three main approaches are available to capture CO2 from large-scale industrial facilities or power plants: (1) post-combustion capture, (2) precombustion capture, and (3) oxy-fuel combustion capture. For power plants, current commercial CO2 capture systems theoretically could operate at 85%-95% capture efficiency—meaning that 85% to 95% of all the CO2 produced during the combustion process could be captured before it goes up the stack into the atmosphere.3 In a worst-case scenario, energy penalty in the capture phase of the CCS process may increase the cost of electricity by 80% and reduce an electricity-generating plant's net capacity by 20%.4 Further, as much as 70%-90% of the total cost for CCS is associated with the capture and compression phases of CCS.5 Other estimates indicate that the energy penalty could be lower, resulting in smaller impacts to subsequent electricity costs.6 A detailed description and assessment of these capture technologies is provided in CRS Report R41325, Carbon Capture: A Technology Assessment, by [author name scrubbed]. Other than the Petra Nova plant (discussed in "Petra Nova: The First (and Only) Large U.S. Power Plant with CCS"), no large U.S. commercial electricity-generating plants currently capture large volumes of CO2 (i.e., over 1 million tons per year). As the Petra Nova project indicates, the post-combustion capture process includes proven technologies that are commercially available today.
Source: E. S. Rubin, "CO2 Capture and Transport," Elements, vol. 4 (2008), pp. 311-317. One example of precombustion capture technology in operation today is at the Great Plains Synfuels Plant in Beulah, ND. The Great Plains plant produces synthetic natural gas from lignite coal through a gasification process, and the natural gas is shipped out of the facility for sale in the natural gas market. The process also produces a stream of high-purity CO2, which is piped northward into Canada for use in enhanced oil recovery (EOR)10 at the Weyburn oil field.11
Source: E. S. Rubin, "CO2 Capture and Transport," Elements, vol. 4 (2008), pp. 311-317. Currently oxy-fuel combustion projects are at the lab- or bench-scale ranging up to verification testing at a pilot scale.13
Source: E. S. Rubin, "CO2 Capture and Transport," Elements, vol. 4 (2008), pp. 311-317. After the CO2 capture step, the gas is purified and compressed to produce a concentrated stream for transport. Pipelines are the most common method for transporting CO2 in the United States. Currently, approximately 4,500 miles of pipelines transport CO2 in the United States, predominately to oil fields,14 where it is used for EOR. Transporting CO2 in pipelines is similar to transporting fuels such as natural gas and oil; it requires attention to design, monitoring for leaks, and protection against overpressure, especially in populated areas.15 Typically, CO2 would be compressed prior to transportation into a supercritical state,16 making it dense like a liquid but fluid like a gas. Using ships may be feasible when CO2 must be transported over large distances or overseas. Liquefied natural gas, propane, and butane are routinely shipped by marine tankers on a large scale worldwide. Ships transport CO2 today, but at a small scale because of limited demand. Rail cars and trucks also can transport CO2, but this mode probably would be uneconomical for large-scale CCS operations. Costs for pipeline transport vary, depending on construction, operation and maintenance, and other factors, including right-of-way costs, regulatory fees, and more. The quantity and distance transported will mostly determine costs, which also will depend on whether the pipeline is onshore or offshore; the level of congestion along the route; and whether mountains, large rivers, or frozen ground are encountered. Shipping costs are unknown in any detail, because no large-scale CO2 transport system via ship (in millions of tons of CO2 per year, for example) is operating.17 Ship costs might be lower than pipeline transport for distances greater than 1,000 kilometers and for less than a few million tons of CO2 transported per year.18 Even though regional CO2 pipeline networks currently operate in the United States for EOR, developing a more expansive network for CCS could pose regulatory and economic challenges. Some observers note that development of a national CO2 pipeline network that would address the broader issue of greenhouse gas reduction using CCS may require a concerted federal policy beyond the current joint federal-state regulatory policy.19 One recommendation from stakeholders is for federal regulators to build on state experience for siting CO2 pipelines, for example.20 DOE's Regional Carbon Sequestration Partnership Initiative has been actively pursuing a three-phase approach to the sequestration step in the CCS process since 2003. It is currently in the development phase.21 The development phase includes implementation of large-scale field testing of approximately 1 million tons of CO2 per project to confirm the safety, permanence, and economics of industrial-scale CO2 storage in seven different regions of the United States.22 The development phase began in 2008 and is projected to last through 2018 and possibly beyond. (in billions of metric tons) Low Medium High Oil and Natural Gas Reservoirs 186 205 232 Unmineable Coal 54 80 113 Saline Formations 2,379 8,328 21,633 Total 2,618 8,613 21,978 Pumping CO2 into oil and gas reservoirs to boost production (that is, enhanced oil recovery) is practiced in the petroleum industry today. The United States is a world leader in this technology, and oil and gas operators inject approximately 68 million tons of CO2 underground each year to help recover oil and gas resources.26 Most of the CO2 used for EOR in the United States comes from naturally occurring geologic formations, however, not from industrial sources. Using CO2 from industrial emitters has appeal because the costs of capture and transport from the facility could be partially offset by revenues from oil and gas production. Both of the currently operating large electricity-generating plants with CCS, Boundary Dam and Petra Nova (discussed below in "Coal-Fired Power Plants with CCS"), offset some of the costs by selling the captured CO2 for EOR. Carbon dioxide can be used for EOR onshore or offshore. To date, most U.S. CO2 projects associated with EOR are onshore, with the bulk of activities in western Texas.27 Carbon dioxide also can be injected into oil and gas reservoirs that are completely depleted, which would serve the purpose of long-term sequestration but without any offsetting benefit from oil and gas production. U.S. coal resources that are not mineable with current technology are those in which the coal beds are not thick enough, are too deep, or lack structural integrity adequate for mining.29 Even if they cannot be mined, coal beds are commonly permeable and can trap gases, such as methane, which can be extracted (a resource known as coal-bed methane, or CBM). Methane and other gases are physically bound (adsorbed) to the coal. Studies indicate that CO2 binds to coal even more tightly than methane binds to coal.30 CO2 injected into permeable coal seams could displace methane, which could be recovered by wells and brought to the surface, providing a source of revenue to offset the costs of CO2 injection. Unlike EOR, injecting CO2 and displacing, capturing, and selling CBM (a process known as enhanced coal bed methane recovery, or ECBM) to offset the costs of CCS is not yet part of commercial production. Currently, nearly all CBM is produced by removing water trapped in the coal seam, which reduces the pressure and enables the release of the methane gas from the coal. The concept of carbon utilization has gained increasingly widespread interest within Congress and in the private sector as a means for capturing CO2 and storing it in potentially useful and commercially viable products, thereby reducing emissions to the atmosphere, and for offsetting the cost of CO2 capture. The carbon utilization process is often referred to in legislative language and elsewhere as CCUS.31 (See, for example, S. 2803, S. 2997, H.R. 2296, discussed below in "CCS-Related Legislation in the 115th Congress.") P.L. 115-123, the Bipartisan Budget Act of 2018, defines carbon utilization as
Source: U.S. DOE, National Energy Technology Laboratory, CO2 Utilization Focus Area, at https://www.netl.doe.gov/research/coal/carbon-storage/research-and-development/co2-utilization. Notes: Enhanced fuel recovery is not considered carbon utilization under P.L. 115-123 for the purposes of tax credits under Section 45Q of the Internal Revenue Code. Direct air capture (DAC) is an emerging set of technologies that aims to remove CO2 directly from the atmosphere, as opposed to the point source capture of CO2 from a source like a power plant (as described above in "CO2 Capture"). DAC systems have the potential to be classified as net carbon negative, meaning that if the captured CO2 is permanently sequestered or becomes part of long-lasting products such as cement or plastics, the end result would be a reduction in the atmospheric concentration of CO2. In addition, DAC systems can be sited almost anywhere, they do not need to be near power plants or other point sources of CO2 emissions. They could be located, for example, close to manufacturing plants that require CO2 as an input, and wouldn't need long pipeline systems to transport the captured CO2. Globally, two fossil-fueled power plants currently generate electricity and capture CO2 in large quantities: the Boundary Dam plant in Canada and the Petra Nova plant in Texas. Both plants retrofitted post-combustion capture technology to units of existing plants. (The different types of carbon capture technologies are discussed above in "CCS Primer.") The Petra Nova–W.A. Parish Generating Station is the first industrial-scale coal-fired electricity-generating plant with CCS to operate in the United States. On January 10, 2017, the plant began capturing approximately 5,000 tons of CO2 per day from its 240-megawatt-equivalent slipstream using post-combustion capture technology.42 The capture technology is approximately 90% efficient (i.e., it captures about 90% of the CO2 in the exhaust gas after the coal is burned to generate electricity) and is projected to capture between 1.4 million and 1.6 million tons of CO2 each year.43 The captured CO2 is transported via an 82-mile pipeline to the West Ranch oil field, where it is injected for enhanced oil recovery (EOR). NRG Energy, Inc., and JX Nippon Oil & Gas Exploration Corporation, the joint owners of the Petra Nova project, together with Hilcorp Energy Company (which handles the injection and EOR), expect to increase West Ranch oil production from 300 barrels per day before EOR to 15,000 barrels per day after EOR.44 DOE provided Petra Nova with more than $160 million from its Clean Coal Power Initiative (CCPI) Round 3 funding, using funds appropriated under the American Recovery and Reinvestment Act of 2009 (Recovery Act; P.L. 111-5) together with other DOE FER&D funding for a total of more than $190 million of federal funds for the $1 billion retrofit project.45 Petra Nova is the only CCPI Round 3 project that expended its Recovery Act funding and is currently operating.46 The three other CCPI Round 3 demonstration projects funded using Recovery Act appropriations, (as well as the FutureGen project—slated to receive nearly $1 billion in Recovery Act appropriations) all have been canceled, have been suspended, or remain in development.47 The Petra Nova plant is projected to capture more CO2 per year than the other currently operating power plant with CCS, Canada's Boundary Dam (which is designed to capture about 1 million tons per year; see "Boundary Dam: World's First Addition of CCS to a Large Power Plant," below). Petra Nova also generates more electricity than Boundary Dam, about 240 megawatts compared to Boundary Dam's 115 megawatts. Both projects retrofitted one unit of much larger multi-unit electricity-generating plants. The Petra Nova project retrofitted Unit 8 of the W.A. Parish power plant, which in total consists of four coal-fired units and six gas-fired units, comprising more than 3.7 gigawatts of gross capacity, making it one of the largest U.S. power plants. In 2015, the entire W.A. Parish complex emitted nearly 15 million tons of CO2 from all of its generating units.48 The Petra Nova project reduces CO2 emissions overall from the entire complex by about 11%. By comparison, in 2016, total U.S. CO2 emissions from the electricity-generating sector were about 1.8 billion tons.49 The Petra Nova project would reduce that total by a small percentage (about 0.08%). However, according to DOE, a purpose of Petra Nova was to demonstrate that post-combustion capture and reuse can be done economically for existing plants when there is an opportunity to recover oil from nearby oilfields. DOE also has stated that the success of Petra Nova has the potential to enhance the long-term viability and sustainability of coal-fueled power plants across the United States and throughout the world.50 The Boundary Dam project was the first commercial-scale power plant with CCS in the world to begin operations. Boundary Dam, a Canadian venture operated by SaskPower,51 cost approximately $1.3 billion according to one source.52 Of that amount, $800 million was for building the CCS process and the remaining $500 million was for retrofitting the Boundary Dam Unit 3 coal-fired generating unit. The project also received $240 million from the Canadian federal government. Boundary Dam started operating in October 2014, after a four-year construction and retrofit of the 150-megawatt generating unit. The final project was smaller than earlier plans to build a 300-megawatt CCS plant, but that original idea may have cost as much as $3.8 billion. The larger-scale project was discontinued because of the escalating costs.53 Similar to the Petra Nova project discussed above, Boundary Dam captures, transports, and sells most of its CO2 for EOR, shipping 90% of the captured CO2 via a 41-mile pipeline to the Weyburn Field in Saskatchewan. CO2 not sold for EOR is injected and stored about 2.1 miles underground in a deep saline aquifer at a nearby experimental injection site. By April 2018, the plant had captured over 2 million tons of CO2 since full-time operations began in October 2014.54 The 115-megawatt (net) plant plans to capture at least 1 million tons of CO2 per year.55 DOE has funded R&D of aspects of the three main steps leading to an integrated CCS system since 1997. Since FY2010, Congress has provided more than $5 billion total in annual appropriations for CCS activities at DOE. The Recovery Act provided an additional $3.4 billion to that total.56 CCS-focused R&D has come to dominate the coal program area within DOE FER&D since 2010. However, the Trump Administration's FY2019 budget request proposes to shift to other priorities, decreasing the overall FER&D budget by nearly $225 million compared to what Congress enacted for FY2018. The FY2019 budget request cites early-stage research as its focus: "This budget request focuses DOE resources toward early-stage R&D and reflects an increased reliance on the private sector to fund later-stage research." The Trump Administration's approach would be a reversal of Obama Administration and George W. Bush Administration DOE policies, which supported large carbon-capture demonstration projects and large injection and sequestration demonstration projects. The Administration previously proposed cuts to FER&D in its FY2018 budget request; however, Congress increased funding by nearly $59 million (9%) compared to FY2017. For FY2019, House-passed appropriations legislation would increase overall funding for DOE FER&D by over $58 million compared to the FY2018 amount, and $283 million above the Administration budget request.57 The Senate-passed version of the appropriations bill would fund DOE FER&D at about the same level as the FY2018 amount, $727 million, also substantially greater than the Administration's request for $502 million.58 The Administration's FY2019 budget request would prioritize the Advanced Energy Systems (AES) account, requesting $175 million, $63 million above the FY2018-enacted amount, nearly a 44% increase. The budget request indicates that AES would focus on six activities: advanced combustion/gasification, advanced turbines, solid oxide fuel cells, advanced sensors and controls, power generation efficiency, and advanced energy materials. Other accounts under the Coal CCS & Power Systems program area are proposed to be funded slightly above or slightly below FY2018 levels, with the exception of CCS activities. Reductions to CCS-related funding would comprise nearly all of the proposed decreased funding for activities in the Coal CCS & Power Systems program area. The budget request for FY2019 proposes to decrease funding for programs under Other Fossil Energy R&D by nearly $87 million, a 35% reduction compared to FY2018. Program Direction ($60 million in FY2018) provides DOE headquarters support and federal field and contractor support of the FER&D programs overall. Program Direction and National Energy Technology Laboratory (NETL) Coal R&D together provide support to CCS-related activities directly and indirectly.(FY2010 through FY2017, including the Trump Administration's FY2018
Oxy-Fuel Combustion Capture
The process of oxy-fuel combustion capture uses pure oxygen instead of air for combustion and produces a flue gas that is mostly CO2 and water, which are easily separable, after which the CO2 can be compressed, transported, and stored (Figure 4). Oxy-fuel combustion requires an oxygen production step, which would likely involve a cryogenic process (shown as the air separation unit in Figure 4). The advantage of using pure oxygen is that it eliminates the large amount of nitrogen in the flue gas stream.12
CO2 Transport
Source: U.S. Department of Energy, National Energy Technology Laboratory, Carbon Storage Atlas, 5th ed., August 20, 2015, at https://www.netl.doe.gov/File%20Library/Research/Coal/carbon-storage/atlasv/ATLAS-V-2015.pdf.
Notes: Data current as of November 2014. The estimates represent only the physical restraints on storage (i.e., the pore volume in suitable sedimentary rocks) and do not consider economic or regulatory constraints. The low, medium, and high estimates correspond to a calculated probability of exceedance of 90%, 50%, and 10%, respectively, meaning that there is a 90% probability that the estimated storage volume will exceed the low estimate and a 10% probability that the estimated storage volume will exceed the high estimate. Numbers in the table may not add precisely due to rounding.
Oil and Gas Reservoirs
Figure 2 illustrates an array of potential utilization pathways ranging from food and fuels to solid building materials like cement to fertilizers. DOE notes that many of the uses shown in Figure 2 are small scale and typically emit the CO2 back to the atmosphere after use, negating the initial reduction in overall CO2 emissions.33 DOE sponsors research to develop technologies capable of manufacturing stable products using CO2 and storing it in a form that will not escape to the atmosphere. The four main areas of DOE-sponsored research in this area are for (1) cement; (2) polycarbonate plastics; (3) mineralization (conversion of CO2 to carbonates); and (4) enhanced oil (EOR) and gas recovery.34 Using CO2 for EOR currently dominates the estimated 80 million tons of CO2 used worldwide,35 and CCUS proponents indicate that EOR likely will continue as the dominant use in the short to medium term.36
Direct Air Capture
FER&D Coal Program Areas |
Program/Activity |
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||
Coal CCS and Power Systems |
Carbon Capture |
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||
Carbon Storage |
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||
Advanced Energy Systems |
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||
Cross-Cutting Research |
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||
Supercritical CO2 Technology |
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||
NETL Coal R&D |
|
|
|
|
|
|
|
|
Transformational Coal Pilots
35,000 |
|
|
||||||||||||||||||||
Subtotal Coal |
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||
Other FER&D |
Natural Gas Technologies |
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||
Unconventional Fossil |
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||
Program Direction |
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||
Plant and Capital |
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||
Env. Restoration |
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||
Special Recruitment |
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||
NETL R&D |
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||
NETL Inf. & Ops |
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||
Coop R&D |
|
|
|
|
|
|
|
|
|
— |
New Fossil Pilot
— |
— |
— |
— |
— |
— |
— |
50,000 |
— |
— |
Directed Projects
35,879 |
— |
— |
— |
— |
— |
— |
— |
— |
— |
Subtotal Other FER&D
266,285 |
195,364 |
164,754 |
156,851 |
178,229 |
171,000 |
202,000 |
258,200 |
220,378 | 158,770 |
Rescissions/Use of Prior-Year Balances
— |
(151,000) |
(187,000) |
— |
— |
— |
— |
(14,000) |
(55,178) | — |
Total FER&D
659,770 |
434,052 |
337,074 |
498,715 |
570,431 |
571,000 |
632,000 |
668,000 |
280,000 | 502,070 |
FY2010- | FY2018
Grand Total |
$ |
Sources: U.S. Department of Energy (DOE) annual budget justifications for FY2010FY2012 through FY2018; P.L. 115-31FY2019; explanatory statement for P.L. 115-141, Division D (Consolidated Appropriations Act, 20172018, https://rules.house.gov/bill/115/hr-1625-sa).
Notes: CO2 = Carbon dioxide; CCS = carbon capture and sequestration (or storage); FER&D = Fossil Energy Research and Development; NETL = National Energy Technology Laboratory; Inf. & Ops = Infrastructure and Operations; Coop = Cooperative; R&D = Research and development. Directed Projects refer to congressionally directed projects. Grand total for FY2010-FY2017FY2018 subject to rounding. Amounts provided by the American Recovery and Reinvestment Act of 2009 (P.L. 111-5) are not shown in the table or included in the grand total.
An integrated CCS system would include three main steps: (1) capturing and separating CO2 from other gases; (2) purifying, compressing, and transporting the captured CO2 to the sequestration site; and (3) injecting the CO2 in subsurface geological reservoirs. The most technologically challenging and costly step in the process is the capture step, which is capital-intensive to build and requires a considerable amount of energy to operate (the amount of energy a power plant uses to capture and compress CO2 is that much less electricity the plant can deliver to its customers; this is sometimes referred to as the energy penalty or the parasitic load). Figure 2 shows the CCS process schematically.
|
The transport and injection/storage steps of the CCS process are not technologically challenging per se, as compared to the capture step. Carbon dioxide pipelines are in use for EOR in regions of the United States today, and large quantities of fluids have been injected into the deep subsurface for a variety of purposes for decades, such as disposal of wastewater from oil and gas operations or of municipal wastewater. However, the transport and capture steps still face challenges, including economic and regulatory issues, rights-of-way, and questions regarding the permanence of CO2 sequestration in deep geological reservoirs, as well as ownership and liability for the stored CO2, among others.
The first step in CCS is to capture CO2 at the source, compress it, and produce a concentrated stream for transport and storage. Currently, three main approaches are available to capture CO2 from large-scale industrial facilities or power plants: (1) post-combustion capture, (2) precombustion capture, and (3) oxy-fuel combustion capture. For power plants, current commercial CO2 capture systems could operate at 85%-95% capture efficiency.40 In a worst-case scenario, the capture phase of the CCS process may increase the cost of electricity by 80% and reduce an electricity-generating plant's net capacity by 20%.41 Further, as much as 70%-90% of the total cost for CCS is associated with the capture and compression phase of CCS.42 Other estimates indicate that the energy penalty could be much lower, resulting in smaller impacts to subsequent electricity costs.43 A detailed description and assessment of these capture technologies is provided in CRS Report R41325, Carbon Capture: A Technology Assessment, by [author name scrubbed].
The process of post-combustion capture involves extracting CO2 from the flue gas following combustion of fossil fuels or biomass.44 Several commercially available technologies, some involving absorption using chemical solvents, can in principle be used to capture large quantities of CO2 from flue gases. Other than the Petra Nova plant, discussed above, no large U.S. commercial electricity-generating plants currently capture large volumes of CO2. As the Petra Nova project indicates, the post-combustion capture process includes proven technologies that are commercially available today.
The process of precombustion capture separates CO2 from the fuel by combining the fuel with air and/or steam to produce hydrogen for combustion and a separate CO2 stream that could be stored. The most common technologies today use steam reforming, in which steam is employed to extract hydrogen from natural gas.45 One example of precombustion capture technology in operation today is at the Great Plains Synfuels Plant in Beulah, ND. The Great Plains plant produces synthetic natural gas from lignite coal through a gasification process, and the natural gas is shipped out of the facility for sale in the natural gas market. The process also produces a stream of high-purity CO2, which is piped northward into Canada for use in EOR at the Weyburn oil field.46
The process of oxy-fuel combustion capture uses oxygen instead of air for combustion and produces a flue gas that is mostly CO2 and water, which are easily separable, after which the CO2 can be compressed, transported, and stored.
Pipelines are the most common method for transporting CO2 in the United States. Currently, approximately 4,500 miles of pipelines transport CO2 in the United States, predominately to oil fields, where it is used for EOR.47 Transporting CO2 in pipelines is similar to transporting fuels such as natural gas and oil; it requires attention to design, monitoring for leaks, and protection against overpressure, especially in populated areas.48 Typically, CO2 would be compressed prior to transportation, making it dense like a liquid but fluid like a gas.49
Using ships may be feasible when CO2 must be transported over large distances or overseas. Ships transport CO2 today, but at a small scale because of limited demand. Liquefied natural gas, propane, and butane are routinely shipped by marine tankers on a large scale worldwide. Rail cars and trucks also can transport CO2, but this mode probably would be uneconomical for large-scale CCS operations.
Costs for pipeline transport vary, depending on construction, operation and maintenance, and other factors, including right-of-way costs, regulatory fees, and more. The quantity and distance transported will mostly determine costs, which also will depend on whether the pipeline is onshore or offshore; the level of congestion along the route; and whether mountains, large rivers, or frozen ground are encountered. Shipping costs are unknown in any detail, because no large-scale CO2 transport system via ship (in millions of tons of CO2 per year, for example) is operating. Ship costs might be lower than pipeline transport for distances greater than 1,000 kilometers and for less than a few million tons of CO2 transported per year.50
Even though regional CO2 pipeline networks currently operate in the United States for EOR, developing a more expansive network for CCS could pose regulatory and economic challenges. Some observers note that development of a national CO2 pipeline network that would address the broader issue of greenhouse gas reduction using CCS may require a concerted federal policy beyond the current joint federal-state regulatory policy.51 One recommendation is for federal regulators to build on state experience for siting CO2 pipelines, for example.
Three main types of geological formations are being considered for carbon sequestration: (1) depleted oil and gas reservoirs, (2) deep saline reservoirs, and (3) unmineable coal seams. In each case, CO2 would be injected in a supercritical state—a relatively dense liquid—below ground into a porous rock formation that holds or previously held fluids. When CO2 is injected at depths greater than 800 meters in a typical reservoir, the pressure keeps the injected CO2 in a supercritical state (dense like a liquid, fluid like a gas), making the CO2 less likely to migrate out of the geological formation. Injecting CO2 into deep geological formations uses existing technologies that have been primarily developed and used by the oil and gas industry and that potentially could be adapted for long-term storage and monitoring of CO2.
DOE's Regional Carbon Sequestration Partnership Initiative has been actively pursuing a three-phase approach to the sequestration step in the CCS process since 2003. It is currently in the development phase.52 The development phase includes implementation of large-scale field testing of approximately 1 million tons of CO2 per project to confirm the safety, permanence, and economics of industrial-scale CO2 storage in seven different regions of the United States.53 The development phase began in 2008 and is projected to last to 2018 or beyond.
The storage capacity for CO2 in geological formations is potentially huge if all the sedimentary basins in the world are considered.54 In the United States alone, DOE has estimated the total storage capacity to range between about 2.6 trillion and 22 trillion metric tons of CO2 (see Table 2). The suitability of any particular site, however, depends on many factors, including proximity to CO2 sources and other reservoir-specific qualities such as porosity, permeability, and potential for leakage. For CCS to succeed, it is assumed that each reservoir type would permanently store the vast majority of injected CO2, keeping the gas isolated from the atmosphere in perpetuity. That assumption is untested, although part of the DOE CCS R&D program has been devoted to testing and modeling the behavior of large quantities of injected CO2. Theoretically—and without consideration of costs, regulatory issues, public acceptance, infrastructure needs, liability, ownership, and other issues—the United States could store its total greenhouse gas emissions (at the current rate) for centuries.
Low |
Medium |
High |
|
Oil and Natural Gas Reservoirs |
186 |
205 |
232 |
Unmineable Coal |
54 |
80 |
113 |
Saline Formations |
2,379 |
8,328 |
21,633 |
Total |
2,618 |
8,613 |
21,978 |
Source: U.S. Department of Energy, National Energy Technology Laboratory, Carbon Storage Atlas, 5th ed., August 20, 2015, at https://www.netl.doe.gov/File%20Library/Research/Coal/carbon-storage/atlasv/ATLAS-V-2015.pdf.
Notes: Data current as of November 2014. The estimates represent only the physical restraints on storage (i.e., the pore volume in suitable sedimentary rocks) and do not consider economic or regulatory constraints. The low, medium, and high estimates correspond to a calculated probability of exceedance of 90%, 50%, and 10%, respectively, meaning that there is a 90% probability that the estimated storage volume will exceed the low estimate and a 10% probability that the estimated storage volume will exceed the high estimate.
Pumping CO2 into oil and gas reservoirs to boost production (that is, enhanced oil recovery) is practiced in the petroleum industry today. The United States is a world leader in this technology, and oil and gas operators inject approximately 68 million tons of CO2 underground each year to help recover oil and gas resources.55 Most of the CO2 used for EOR in the United States comes from naturally occurring geologic formations, however, not from industrial sources. Using CO2 from industrial emitters has appeal because the costs of capture and transport from the facility could be partially offset by revenues from oil and gas production. Both of the currently operating large electricity-generating plants with CCS, Boundary Dam and Petra Nova, offset some of the costs of CCS by selling the captured CO2 for EOR.
Carbon dioxide can be used for EOR onshore or offshore. To date, most CO2 projects associated with EOR are onshore, with the bulk of U.S. activities in western Texas.56 Carbon dioxide also can be injected into oil and gas reservoirs that are completely depleted, which would serve the purpose of long-term sequestration but without any offsetting benefit from oil and gas production.
Some rocks in sedimentary basins contain saline fluids—brines or brackish water unsuitable for agriculture or drinking. As with oil and gas, deep saline reservoirs can be found onshore and offshore; they are often part of oil and gas reservoirs and share many characteristics. The oil industry routinely injects brines recovered during oil production into saline reservoirs for disposal.57 As Table 2 shows, deep saline reservoirs constitute the largest potential for storing CO2 by far. However, unlike oil and gas reservoirs, storing CO2 in deep saline reservoirs does not have the potential to enhance the production of oil and gas or to offset costs of CCS with revenues from the produced oil and gas.
U.S. coal resources that are not mineable with current technology are those in which the coal beds are not thick enough, are too deep, or lack structural integrity adequate for mining.58 Even if they cannot be mined, coal beds are commonly permeable and can trap gases, such as methane, which can be extracted (a resource known as coal-bed methane, or CBM). Methane and other gases are physically bound (adsorbed) to the coal. Studies indicate that CO2 binds to coal even more tightly than methane binds to coal.59 CO2 injected into permeable coal seams could displace methane, which could be recovered by wells and brought to the surface, providing a source of revenue to offset the costs of CO2 injection. Unlike EOR, injecting CO2 and displacing, capturing, and selling CBM (a process known as enhanced coal bed methane recovery) to offset the costs of CCS is not yet part of commercial production. Currently, nearly all CBM is produced by removing the water trapped in the coal seam, which reduces the pressure and enables the release of the methane gas from the coal.
Many CCS proponents hailed the start-up of the first U.S. coal-fired power plant with CCS—Petra Nova—as a major step in the advancement of CCS deployment across the electricity sector and a milestone for CCS as a viable technology for reducing greenhouse gas emissions.60 The enthusiasm for Petra Nova may have been tempered somewhat by the June 28, 2017, announcement that Mississippi Power was suspending the CCS portion of its Kemper County Energy Facility. Kemper is a long-anticipated project with combined coal gasification and CCS using technology developed with assistance from DOE. Unlike Petra Nova and the Boundary Dam CCS plant in Canada—both retrofits of older plants—Kemper was built with the intention to integrate CCS technology into the plant design from the outset. All three plants received subsidies from the federal government, but other factors were at play in determining the success or failure of each venture.
In some aspects, the Kemper plant resembled the original design for the FutureGen plant during the George W. Bush Administration: a power plant built from scratch to be largely emissions free using CCS.61 Cost issues and schedule delays also hampered FutureGen, even though it was slated to receive nearly $1 billion in federal funds, far more than the amount provided to Kemper.
Costs and schedule delays for nearly first-of-a-kind large, capital-intensive projects are not unanticipated, as demonstration phase projects commonly fall along the most expensive part of a cost curve from inception to commercial deployment. Nevertheless, the mixed success in 2017 of the Petra Nova and Kemper plants puts the further development of CCS somewhat at a crossroads, particularly with the apparent lack of interest in further support for such projects signaled by the Trump Administration. President Trump's FY2018 budget request would severely reduce DOE funding for CCS overall. In addition, the Administration has expressed interest in supporting early-stage research within its FER&D portfolio but not in supporting large demonstration-scale projects such as Petra Nova or Kemper.
The Obama Administration commissioned a CCS task force, which concluded that the largest barrier to long-term demonstration and deployment of CCS technology is the absence of a federal policy to reduce greenhouse gas emissions.62 The task force further concluded that widespread deployment of CCS will occur only if the technology is commercially available at economically competitive prices. None of those factors appear to be in place currently, which may indicate that demonstration and deployment of industrial-scale CCS will be delayed compared to earlier projections, pending future policy, technological, and economic developments.
Even with the current uncertainty over the future of CCS, some in Congress have signaled continued support for DOE's R&D efforts with respect to CCS. The House Energy and Water Development appropriations draft legislation would support CCS R&D at a level comparable to FY2017, for example.63 The Senate version of the appropriations legislation would fund CCS R&D at a lower level than the House version but a far higher level than the Administration's budget request. In addition, some Senators and Members of Congress have continued to introduce legislation in the 115th Congress intended to advance and shape CCS.
Author Contact Information
1. |
Carbon capture and sequestration (CCS) also could be used to capture carbon dioxide (CO2) emissions from power plants that use bioenergy sources instead of fossil fuels. |
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2. |
Mary Perez, "Mississippi Power Suspends Coal Portion of Kemper Plant," Sun Herald, June 28, 2017, at http://www.sunherald.com/news/business/article158675414.html. |
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3. |
Some other types of plants use CO2 capture technology as part of their industrial process, such as the Great Plains Synfuels Plant (discussed in "Precombustion Capture") or in some natural gas processing plants, which need to remove the CO2 as an impurity from the natural gas prior to shipping. |
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4. |
In this report, the amount of CO2 is stated in metric tons, or 1,000 kilograms, which is approximately 2,200 pounds. Hereinafter, the unit tons means metric tons. Slipstream refers to the exhaust gases emitted from the power plant. NRG News Release, "NRG Energy, JX Nippon Complete World's Largest Post-Combustion Carbon Capture Facility On-Budget and On-Schedule," January 10, 2017, at http://investors.nrg.com/phoenix.zhtml?c=121544&p=irol-newsArticle&ID=2236424. |
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5. |
Global CCS Institute, Projects Database, "Petra Nova Carbon Capture," at http://www.globalccsinstitute.com/projects/petra-nova-carbon-capture-project; and Christa Marshal and Edward Klump, "Carbon Capture Takes a 'Huge Step' with First U.S. Plant," Energy Wire, January 10, 2017, at https://www.eenews.net/energywire/stories/1060048090/search?keyword=petra+nova. |
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6. |
Injecting CO2 into an oil reservoir often increases or enhances production by lowering the viscosity of the oil, which allows it to be pumped more easily from the formation. The process is sometimes referred to as tertiary recovery or enhanced oil recovery (EOR). |
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7. |
NRG News Release, "NRG Energy, JX Nippon Complete World's Largest Post-Combustion Carbon Capture Facility On-Budget and On-Schedule," January 10, 2017, at http://investors.nrg.com/phoenix.zhtml?c=121544&p=irol-newsArticle&ID=2236424. |
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8. |
U.S. Department of Energy (DOE), National Energy Technology Laboratory (NETL), "Recovery Act: Petra Nova Parish Holdings: W.A. Parish Post-Combustion CO2 Capture and Sequestration Project," at https://www.netl.doe.gov/research/coal/project-information/fe0003311. |
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9. |
For an analysis of carbon capture and sequestration (CCS) projects funded by the American Recovery and Reinvestment Act (P.L. 111-5), see CRS Report R44387, Recovery Act Funding for DOE Carbon Capture and Sequestration (CCS) Projects, by [author name scrubbed]. |
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10. |
FutureGen is discussed in more detail in CRS Report R44387, Recovery Act Funding for DOE Carbon Capture and Sequestration (CCS) Projects, by [author name scrubbed]. |
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11. |
U.S. Environmental Protection Agency, "2015 Greenhouse Gas Emissions from Large Facilities, W.A. Parish," at https://ghgdata.epa.gov/ghgp/service/facilityDetail/2015?id=1006868&ds=E&et=FC_CL&popup=true. |
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12. |
U.S. Environmental Protection Agency, Inventory of U.S. Greenhouse Gas Emissions and Sinks: 1990-2015, EPA 430-P-17-001, April 15, 2017, Table ES-2, at https://www.epa.gov/sites/production/files/2017-02/documents/2017_complete_report.pdf. |
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13. |
DOE, NETL, "Recovery Act: Petra Nova Parish Holdings: W.A. Parish Post-Combustion CO2 Capture and Sequestration Project," at https://www.netl.doe.gov/research/coal/project-information/fe0003311. |
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14. |
Southern Company, "Southern Company and Mississippi Power Announce Suspension of Gasification Operations," news release, June 28, 2017, at http://www.southerncompany.com/newsroom/news-releases.html. |
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15. |
Mary Perez, "Mississippi Power Suspends Coal Portion of Kemper Plant," Sun Herald, June 28, 2017. |
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16. |
Southern Company, "Southern Company and Mississippi Power Announce Suspension of Gasification Operations." news release, June 28, 2017, at http://www.southerncompany.com/newsroom/news-releases.html. |
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17. |
DOE, Office of Fossil Energy, "CCPI Round 2 Selections," at http://energy.gov/fe/ccpi-round-2-selections. |
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18. |
DOE, NETL, CCS Demonstrations, CCPI Initiative, "Demonstration of a Coal-Based Transport Gasifier," at http://netl.doe.gov/research/proj?k=FC26-06NT42391. |
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19. |
Excluding costs of the lignite mine, CO2 pipeline, financing, and other costs. |
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20. |
Global CCS Institute, Projects Database, "Kemper County Energy Facility," at http://www.globalccsinstitute.com/projects/kemper-county-energy-facility. |
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21. |
Ibid. |
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22. |
Others include, for example, FutureGen, the AEP Mountaineer Project, the Hydrogen Energy California Project, and others. See CRS Report R44387, Recovery Act Funding for DOE Carbon Capture and Sequestration (CCS) Projects, by [author name scrubbed], for additional information and analysis. |
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23. |
For more information, see CRS In Focus IF10589, DOE Fossil Energy Research & Development: Funding for CCS, by [author name scrubbed]. |
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24. |
See, for example, Gordon Hughes, The Bottomless Pit: the Economics of Carbon Capture and Storage, Global Warming Policy Foundation (GWPF), GWPF Report 24, 2017, at https://www.thegwpf.org/content/uploads/2017/06/CCS-Report.pdf; Sandy Buchanan, "Mississippi's Kemper County Experiment Proves Clean Coal Is a Myth," The Hill, June 24, 2017, at http://thehill.com/blogs/pundits-blog/energy-environment/339191-mississippis-kemper-county-experiment-proves-clean-coal; Nicolas D. Loris, The Many Problems of the EPA's Clean Power Plan and Climate Regulations: A Primer, Heritage Foundation, Backgrounder, July 7, 2015, pp. 7-8, at http://thf_media.s3.amazonaws.com/2015/pdf/BG3025.pdf. |
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25. |
SaskPower is the principal electric utility in Saskatchewan, Canada. |
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26. |
MIT Carbon Capture & Sequestration Technologies, CCS Project Database, "Boundary Dam Fact Sheet: Carbon Capture and Storage Project," at http://sequestration.mit.edu/tools/projects/boundary_dam.html. |
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27. |
MIT Carbon Capture & Sequestration Technologies, CCS Project Database, "Boundary Dam Fact Sheet: Carbon Capture and Storage Project." |
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28. |
Global CCS Institute, Projects Database, "Boundary Dam Carbon Capture and Storage," at http://www.globalccsinstitute.com/projects/boundary-dam-carbon-capture-and-storage-project. |
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29. |
Net power refers to the gross amount of power generated by the plant minus the electricity used to operate the plant. In this case, the electricity used to operate the plant includes the amount of electricity used for carbon capture. |
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30. |
Gordon Hughes, The Bottomless Pit: The Economics of Carbon Capture and Storage, GWPF, GWPF Report 24, 2017, p. 55. |
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31. |
Ian Austen, "Technology to Make Clean Energy from Coal Is Stumbling in Practice," New York Times, March 29, 2016, p. B1. |
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32. |
Ibid. |
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33. |
Gordon Hughes, The Bottomless Pit: the Economics of Carbon Capture and Storage, GWPF, GWPF Report 24, 2017, p. X. |
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34. |
Geological storage refers to the permanent storage or sequestration of CO2 in an underground formation. This is discussed further in the section "CO2 Sequestration." |
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35. |
In this report, CCS and CCUS (carbon capture, utilization, and storage) are used interchangeably. Examples of utilization technologies would be the use of CO2 to manufacture a product, such as cement, or its use to enhance oil recovery. |
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36. |
Class II wells are used to inject fluids associated with oil and gas production, per the Underground Injection Control (UIC) program, authorized under the Safe Drinking Water Act. Class II wells include wells used for EOR. |
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37. |
Authority to expend American Recovery and Reinvestment Act (Recovery Act; P.L. 111-5) funds expired in 2015. An analysis of Recovery Act funding for CCS activities at DOE is provided in CRS Report R44387, Recovery Act Funding for DOE Carbon Capture and Sequestration (CCS) Projects, by [author name scrubbed]. |
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38. |
The FY2018 Trump Administration budget request indicates that early-stage research refers to fundamental research that has a significant degree of scientific or technical uncertainty, making it unlikely that industry will invest significant R&D on its own. See DOE, FY2018 Congressional Budget Request, p. 203, https://energy.gov/sites/prod/files/2017/05/f34/FY2018BudgetVolume3_0.pdf. |
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39. |
The amount of $634.6 million was unchanged in the July 18, 2017, House Rules Committee Print 115-30, at http://docs.house.gov/billsthisweek/20170724/BILLS%20-115HR3219HR3162HR2998HR3266-RCP115-30.pdf. |
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40. |
DOE, NETL, "Carbon Capture Program," fact sheet, June 2016, at https://www.netl.doe.gov/File%20Library/Research/Coal/carbon%20capture/Carbon-Capture-Factsheet-June-2016.pdf. |
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41. |
Ibid. |
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42. |
White House, Report of Interagency Task Force on Carbon Capture and Storage, August 2010, p. 9, at https://energy.gov/sites/prod/files/2013/04/f0/CCSTaskForceReport2010_0.pdf. |
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43. |
See, for example, Howard J. Herzog, Edward S. Rubin, and Gary T. Rochelle, "Comment on 'Reassessing the Efficiency Penalty from Carbon Capture in Coal-Fired Power Plants,'" Environmental Science and Technology, vol. 50 (May 12, 2016), pp. 6112-6113. |
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44. |
Flue gas refers to the emissions from combusting fossil fuels to generate steam at the plant. For post-combustion capture using air, the flue gas consists mostly of nitrogen, CO2, and water vapor. |
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45. |
See CRS Report R41325, Carbon Capture: A Technology Assessment, by [author name scrubbed]. |
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46. |
For a more detailed description of the Great Plains Synfuels plant, see DOE, NETL, "SNG From Coal: Process & Commercialization," at https://www.netl.doe.gov/research/coal/energy-systems/gasification/gasifipedia/great-plains. |
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47. |
Mathew Wallace et al., A Review of the CO2 Pipeline Infrastructure in the U.S., DOE, DOE/NETL-2014/1681, April 21, 2015, at https://energy.gov/sites/prod/files/2015/04/f22/QER%20Analysis%20-%20A%20Review%20of%20the%20CO2%20Pipeline%20Infrastructure%20in%20the%20U.S_0.pdf. |
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48. |
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49. |
Also, when injected underground to depths greater than 800 meters, the overlying pressure keeps CO2 in a supercritical state, making it less likely to migrate out of the geological formation. |
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50. |
IPCC Special Report, p. 31. |
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51. |
Mathew Wallace et al., A Review of the CO2 Pipeline Infrastructure in the U.S., DOE, April 21, 2015, p. 1. |
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52. |
DOE, NETL, "Regional Carbon Sequestration Partnership (RCSP) Initiative," at https://www.netl.doe.gov/research/coal/carbon-storage/carbon-storage-infrastructure/rcsp. |
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53. |
Ibid. |
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54. |
Sedimentary basins refer to natural large-scale depressions in the Earth's surface that are filled with sediments and fluids and are therefore potential reservoirs for CO2 storage. |
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55. |
As of 2014. See Vello Kuuskraa and Matt Wallace, "CO2-EOR Set for Growth as New CO2 Supplies Emerge," Oil and Gas Journal, vol. 112, no. 4 (April 7, 2014), p. 66. |
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56. |
As of 2014, nearly two-thirds of oil production using CO2 for EOR came from the Permian Basin, located in western Texas and southeastern New Mexico. Ibid., p. 67. |
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57. |
The U.S. Environmental Protection Agency (EPA) regulates this practice under authority of the Safe Drinking Water Act, Underground Injection Control (UIC) program. See the EPA UIC program at https://www.epa.gov/uic/class-ii-oil-and-gas-related-injection-wells. |
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A number of bills introduced in the 115th Congress would potentially affect CCS in the United States. Several bills or provisions of bills address Internal Revenue Code, Section 45Q, providing tax credits for CO2 capture and sequestration or use as a tertiary injectant for EOR or natural gas production (S. 1535, S. 1663, S. 2256, H.R. 1892, H.R. 2010, H.R. 3761, H.R. 4857, (see Appendix). H.R. 1892, the Bipartisan Budget Act of 2018, was enacted into law as P.L. 115-123. The provisions of P.L. 115-123 that amended Section 45Q and their implications are discussed in more detail in the text box below. Other bills also would amend the Internal Revenue Code in ways affecting CCS. For example, S. 843 and H.R. 2011 would amend Section 142 of the Internal Revenue Code to allow qualified CO2 capture facilities that capture 65% or more of their CO2 emissions to be eligible for tax-exempt private activity bonds.60 The bills assert that allowing tax-exempt financing for the purchase of capital equipment that is used to capture carbon dioxide will reduce the costs of developing carbon dioxide capture projects, accelerate their deployment, and, in conjunction with carbon dioxide utilization and long-term storage, help the United States meet critical environmental, economic, and national security goals. Several bills would address federal efforts to enhance CCS or emphasize different aspects of the process across three different federal agency and departmental jurisdictions: EPA, DOE, and the Department of Agriculture. S. 2602, for example, would authorize activities under EPA jurisdiction to support direct air capture and utilization of CO2, and would include carbon capture infrastructure projects as eligible under the FAST Act, as part of the bill's intent to expedite the permitting process for CCS. The legislation would add CCS infrastructure projects explicitly as eligible covered projects, meaning any infrastructure construction activity requiring authorization or environmental review by a federal agency.61 S. 2803 and H.R. 5745 would amend the Energy Policy Act of 2005 (P.L. 109-58) to authorize DOE to further its CCS research, development, and deployment (RD&D) activities, and place a greater emphasis on CO2 utilization. S. 2803 would also authorize a project aimed to achieve net-negative CO2 emissions—projects utilizing biomass and fossil fuels to produce electricity, fuels, or chemicals—with a net removal of CO2 from the atmosphere. S. 2997 would authorize the Secretary of Agriculture to pursue biomass-related CCS R&D projects, and would authorize the use of loans or loan guarantees for biomass-related CO2 capture and utilization activities. H.R. 2296 would focus on DOE CCS-related activities and require the department to evaluate its RD&D projects and make recommendations whether each project should continue to receive funding based on progress toward its CCS goals. H.R. 4096 would establish a $5 million prize for CCS-related technology development and commercialization, pursuant to Section 24 of the Stevenson-Wydler Technology Innovation Act of 1980 (15 U.S.C. 3719).62 H.R. 5745 would authorize or encourage RD&D activities across the spectrum of CCS, including carbon capture, carbon sequestration, carbon utilization, and carbon removal (including direct air capture), and would authorize a $15 million prize competition to develop direct air capture technology. The bill also would establish a task force to assess the potential for a national system of CO2 pipelines. P.L. 115-123: Amending the 45Q Tax Credit for CCS Title II, Section 41119 of P.L. 115-123, the Bipartisan Budget Act of 2018, amended Internal Revenue Code, Section 45Q, to increase the tax credit for capture and sequestration of "carbon oxide," or for its use as a tertiary injectant in enhanced oil recovery (EOR) or natural gas development operations. (Carbon oxide is defined variously in the legislation to include CO2, or any other carbon oxide—such as carbon monoxide—that qualifies under provisions of the enacted law.) Prior to enactment, the 45Q Section allowed for a tax credit of $20 per ton of CO2 captured and permanently sequestered, and $10 per ton for CO2 captured and used as a tertiary injectant (typically for enhanced oil recovery, EOR). These credit amounts were adjusted annually for inflation, and for 2017 the credit amounts were $22.48 and $11.24. The credit is effectively capped at 75 million metric tons of qualified CO2 captured or injected. Some observers noted that the 75 million ton cap did not provide enough financial certainty for investors in typically capital-intensive CCS construction projects. Proponents of CCS also pointed to the difficulty in transferability of the credits, and the small value of the credits, as impediments to more widespread adoption of CCS. The new law raises the tax credit linearly from $22.66 to $50 per ton over the period from 2017 until calendar year 2026 for CO2 captured and permanently stored, and from $12.83 to $35 per ton over the same period for CO2 captured and used as a tertiary injectant. Starting with calendar year 2027, the tax credit would be indexed to inflation. It also removes the 75 million ton cap, but requires that the credit be claimed over a 12-year period after operations begin. Additionally, to qualify, facilities must begin construction before 2024. To qualify, a minimum amount of CO2 is required to be captured and stored or utilized by the facility. This amount varies with the type of facility. An electricity generating facility that emits more than 500,000 tons of CO2 per year, for example, must capture a minimum 500,000 tons of CO2 annually to qualify for the tax credit. A facility that captures CO2 for the purposes of utilization—fixing CO2 through photosynthesis or chemosynthesis, converting it to a material or compound, or using it for any commercial purpose other than tertiary injection or natural gas recovery (as determined by the Secretary of the Treasury)—and emits less than 500,000 tons of CO2 must capture at least 25,000 tons per year. A direct air capture facility or a facility that doesn't meet the other criteria just described must capture at least 100,000 tons per year. The modifications to 45Q in P.L. 115-97 also changed taxpayer eligibility for claiming the credit. For equipment placed in service before February 9, 2018, the credit is attributable to the person that captures and physically or contractually ensures the disposal or use of qualified CO2, unless an election is made to allow the person disposing of the captured CO2 to claim the credit. For equipment placed in service after February 9, 2018, the credit is attributable to the person that owns the carbon capture equipment and physically or contractually ensures the disposal or use of the qualified CO2. The credits can be transferred to the person that disposes of or uses the qualified CO2. CCS proponents indicate that this provides greater flexibility for companies with different business models to utilize the tax credit effectively, including cooperative and municipal utilities. Some stakeholders suggest that the changes to Section 45Q could be a "game changer" for CCS developments in the United States, by providing high-enough incentives for investments into CO2 capture and storage. They note that EOR has been the main driver for CCS development until now, and the new tax credit incentives might result in an increased shift toward CO2 capture for permanent storage apart from EOR. Opponents to the 45Q expansion include environmental groups that broadly oppose measures that extend the life of coal-fired power plants or provide incentives to private companies to increase oil production. Another factor to consider is the cost. According to the Joint Committee on Taxation (JCT), the changes enacted in P.L. 115-123 will reduce federal tax revenue by an estimated $689 million between fiscal years 2018 and 2027. Other groups note that measures in addition to the 45Q expansion will be needed to lower CCS costs and promote broader deployment. Sources: P.L. 115-123; Center for Carbon Removal, What Does 45Q Mean for Carbontech?, April 15, 2018, http://www.centerforcarbonremoval.org/blog-posts/2018/4/15/what-does-45q-mean-for-carbontech-1; Frederick R. Eames and Davis S. Lowman, Jr., Section 45Q Tax Credit Enhancements Could Boost CCS, The Nickel Report, Hunton & Williams LLP, February 22, 2018, at https://www.huntonnickelreportblog.com/2018/02/section-45q-tax-credit-enhancements-could-boost-ccs/; Bellona Europa, Will Changes to the US Budget Act of 2018 Incentivise CCS in the US?, March 8, 2018, http://bellona.org/news/ccs/2018-03-will-changes-to-the-us-budget-act-of-2018-incentivise-ccs-in-the-us; Carbon Capture Coalition, Key Provisions of Congressional Legislation to Extend and Reform the Federal 45Q Tax Credit, at http://carboncapturecoalition.org/legislation/; Clean Water Action, Sign-On Letter: Oppose Expanding the Section 45Q Tax Credit for Oil, Gas and Coal Companies, November 7, 2017, https://www.cleanwateraction.org/publications/sign-letter-oppose-expanding-section-45q-tax-credit-oil-gas-and-coal-companies; and Joint Committee on Taxation, Estimated Effects of the Revenue Provisions Contained in the "Bipartisan Budget Act of 2018," JCX-4-18, February 8, 2018, https://www.jct.gov/publications.html?func=startdown&id=5061; Center for Climate and Energy Solutions (C2ES), Letter to Senate Leaders, https://www.c2es.org/press-release/letter-to-senate-leaders/. DiscussionCurrently the Petra Nova plant in Texas is the sole U.S. commercial large-scale fossil-fueled power plant with CCS, capturing over 1 million tons of CO2 annually. The Boundary Dam power plant in Canada is the only other commercial fossil-fueled electricity generating plant in the world operating with CCS and capturing a nearly equivalent volume of CO2. Both plants offset a portion of the cost of CCS by selling CO2 for the purpose of enhanced oil recovery. Some CCS proponents have hailed the expanded tax credit provision enacted as part of P.L. 115-123, increasing the value of tax credits under Section 45Q of the Internal Revenue Code, as a potential "game changer" for incentivizing more development of large-scale CCS deployment like Petra Nova and Boundary Dam. Some CCS proponents advocate for other incentives, such as tax-exempt private activity bonds, and enabling eligibility of master limited partnerships for CCS infrastructure projects, which could also increase the financial attractiveness of large-scale capital-intensive CCS endeavors. According to CCS proponents, private activity bonds would allow CCS project developers access to tax-exempt debt, thus lowering their capital costs. Master limited partnerships would allow a corporate structure to combine the tax benefits of a partnership with a corporation's ability to raise capital, reducing the cost of equity and providing access to capital on more favorable terms, according to proponents. Members of Congress have introduced legislation that would authorize these financial incentives, as well as a suite of other bills aimed at advancing CCS by making CCS infrastructure projects eligible under the FAST Act (42 U.S.C. 4370m(6)), supporting increased research and development for conventional CCS and for carbon utilization technologies and direct air capture of CO2. Several bills would authorize technology prizes for advances in CCS R&D, including for utilization technologies and direct air capture. P.L. 115-123 was enacted on February 9, 2018, and it likely will take time to evaluate the impact on U.S. CCS activities. Other factors, such as the price of oil, which could affect demand for EOR and thus CO2, and the price of natural gas—which could affect the substitution of natural gas for coal in electricity production—will also shape the extent and rapidity of CCS adoption as well. Enactment of other legislation introduced in the 115th Congress (Appendix) that would provide additional incentives for CCS could also influence future CCS activities. Ultimately the success of legislative approaches advocated by bill sponsors, and more broadly by CCS proponents, will be measured by how those approaches reduce costs for CCS, through financial incentives, technology development, and commercially viable CO2-based products, so that the suite of CCS technologies would be more broadly deployed. Absent a policy mandate for reducing CO2 emissions, or rewarding CO2 capture and storage or utilization (apart from the 45Q tax incentives enacted in P.L. 115-123), there is broad agreement that costs for CCS would need to decrease before the technologies are commercially deployed across the nation. The issue of greater CCS deployment is fundamental to the underlying reason CCS is deemed important by a range of proponents: to reduce CO2 emissions (or reduce the concentration of CO2 in the atmosphere) and help mitigate against human-induced climate change. The conventional concept of CCS whereby CO2 emissions from large stationary sources in the United States, such as fossil fuel electricity generating plants, refineries, cement plants, and others was recognized early on as a potential pathway to reducing a large amount greenhouse gas emissions from a relatively small number of point sources.63 The U.S. fossil fuel electricity generation sector alone emitted 1.8 billion tons of CO2 in 2016, or 34% of total U.S. CO2 emissions (5.31 billion tons) that year.64 The emerging technologies for utilizing CO2 for a variety of uses and products (carbon utilization, see Figure 5) has energized some CCS advocates because of the commercial potential and prospects for the sequestration of CO2 in long-lasting products such as cements and plastics. A challenge for utilization advocates is whether the market for carbon utilization products and uses is sufficiently large so that the amount of CO2 captured or removed from the atmosphere has some measurable effect on human-induced climate change.Direct air capture (DAC) also has energized some CCS advocates as it offers the promise of net-negative carbon removal if the CO2 removed by DAC is permanently stored or sequestered. The challenge for DAC is fairly straightforward—how to reduce the cost per ton of CO2 removed. Table A-1. CCS-Related Legislation in the 115th Congress
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Bill Number
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Short Title
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Status
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Short Summary
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Carbon Capture Improvement Act of 2017
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Amends the Internal Revenue Code to authorize the issuance of tax-exempt facility bonds for the financing of qualified carbon dioxide capture facilities. Related bill H.R. 2011.
Referred to Committee on Finance
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Furthering Carbon Capture, Utilization, Technology, Underground Storage, and Reduced Emissions Act
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Referred to Committee on Finance
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Amends the Internal Revenue Code, Section 45Q, to increase the carbon oxide sequestration credit from $20 per metric ton for permanent sequestration, and $10 per ton as a tertiary injectant for enhanced oil and gas recovery, to $22.66 up to $50 per ton through 2027 and $12.83 up to $35 per ton over the same time span for permanent sequestration and enhanced oil and gas recovery, respectively. Includes direct air capture facilities with other industrial facilities as qualified facilities for the credits. Includes carbon utilization as one of the categories eligible for the credit. Related bills S. 2256, H.R. 1892, H.R. 3761.
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CO2 Regulatory Certainty Act
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Referred to Committee on Finance
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Amends the Internal Revenue Code to revise requirements for the secure geological storage of carbon dioxide for the purpose of the tax credit for carbon dioxide sequestration. Establishes a December 31, 2017, deadline and requirements for regulations that the Internal Revenue Service (IRS) is required, under current law, to establish for determining adequate security measures for the geological storage of the carbon dioxide such that carbon dioxide does not escape into the atmosphere. Related bills H.R. 2010, H.R. 4857.
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Master Limited Partnerships Parity Act
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Referred to Committee on Finance
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Amends the Internal Revenue Code, with respect to the tax treatment of publicly traded partnerships as corporations, to expand the definition of "qualifying income" for such partnerships (known as master limited partnerships) to include income and gains from renewable and alternative energy generation projects, including carbon capture in secure geological storage. Related bill H.R. 4118.
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Tax Extender Act of 2017
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Referred to Committee on Finance
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Title IV: amends the Internal Revenue Code, Section 45Q, to increase the carbon oxide sequestration credit from $20 per metric ton for permanent sequestration, and $10 per ton as a tertiary injectant for enhanced oil and gas recovery, to $22.66 up to $50 per ton through 2027 and $12.83 up to $35 per ton over the same time span for permanent sequestration and enhanced oil and gas recovery, respectively. Includes direct air capture facilities with other industrial facilities as qualified facilities for the credits. Includes carbon utilization as one of the categories eligible for the credit. Related bills H.R. 1892, H.R. 3761, S. 1535.
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Utilizing Significant Emissions with Innovative Technologies Act
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Placed on Senate Legislative Calendar
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Title 1: authorizes the Administrator of the EPA to support activities that help develop direct air capture of CO2, including a technology prize program; authorizes the EPA Administrator to carry out an R&D program to promote CO2 utilization. Title II: amends FAST Act (42 U.S.C. 4370m(6)) to include CO2 pipelines and infrastructure for carbon capture within the definition of eligible projects.
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Fossil Energy Utilization , Enhancement, and Leadership Act of 2018
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Referred to Committee on Energy and Natural Resources
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Amends the Energy Policy Act of 2005 (EPAct, P.L. 109-58) to establish a coal technology program to include an R&D program, pilot-scale and demonstration projects, net-negative CO2 emissions projects, and a front-end engineering and design program for fossil fuel power plants that would include carbon capture, utilization, and storage. Amends EPAct to establish a carbon utilization program; establishes a task force on CO2 pipelines; establishes a DOE program for extracting rare-earth elements from coal.
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Carbon Utilization Act of 2018
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Referred to Committee on Agriculture, Nutrition, and Forestry
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Amends the 2002 farm bill (P.L. 107-171) to include CO2 capture, utilization, and sequestration from biomass-related facilities; authorizes a carbon utilization education program; authorizes the Secretary of Agriculture to provide loans or loan guarantees for CO2 capture and utilization.
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Bipartisan Budget Act of 2018
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Enacted as P.L. 115-123
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Title II, Section 41119: amended the Internal Revenue Code, Section 45Q, to increase the carbon oxide sequestration credit from $20 per metric ton for permanent sequestration, and $10 per ton as a tertiary injectant for enhanced oil and gas recovery, to $22.66 up to $50 per ton through 2027 and $12.83 up to $35 per ton over the same time span for permanent sequestration and enhanced oil and gas recovery, respectively. Includes direct air capture facilities with other industrial facilities as qualified facilities for the credits. Includes carbon utilization as one of the categories eligible for the credit.
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CO2 Regulatory Certainty Act
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Referred to Committee on Ways and Means
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Amends the Internal Revenue Code to revise requirements for the secure geological storage of carbon dioxide for the purpose of the tax credit for carbon dioxide sequestration. Establishes a December 31, 2017, deadline and requirements for regulations that the Internal Revenue Service (IRS) is required, under current law, to establish for determining adequate security measures for the geological storage of the carbon dioxide such that carbon dioxide does not escape into the atmosphere. Related bills S. 1663, H.R. 4857.
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Carbon Capture Improvement Act of 2017
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Referred to Committee on Ways and Means
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Amends the Internal Revenue Code to authorize the issuance of tax-exempt facility bonds for the financing of qualified carbon dioxide capture facilities. Related bill S. 843.
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Advancing CCUS Technology Act
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Referred to Committee on Energy and Commerce, Committee on Science, Space, and Technology
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Amends the Energy Policy Act of 2005 (P.L. 109-58) to direct the Department of Energy (DOE) to carry out research and develop technology to improve the conversion, use, and storage of carbon dioxide from fossil fuels. It also revises the program of research and commercial application for coal and power systems to require DOE, during each fiscal year after FY2017, to identify cost and performance goals for technologies allowing large-scale demonstration and the continued cost-competitive commercial use of coal.
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Carbon Capture Act
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Referred to Committee on Ways and Means
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Amends the Internal Revenue Code, Section 45Q, to allow credit for certain qualified projects for the sequestration or utilization of CO2 for 15 years beginning on the date the equipment was placed in service; increases the credit to up to $35 per ton for certain qualified projects over the 15-year time span. Includes direct air capture facilities with other industrial facilities as a qualified facility.
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Carbon Capture Prize Act
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Referred to Committee on Science, Space, and Technology
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Authorizes the Secretary of Energy to award a $5 million prize to the winner or winners of a competition for research, development, or commercialization of a technology that would reduce the amount of carbon in the atmosphere including by capturing and sequestering CO2 or reducing CO2 emissions.
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Master Limited Partnerships Parity Act
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Referred to Committee on Ways and Means
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Amends the Internal Revenue Code, with respect to the tax treatment of publicly traded partnerships as corporations, to expand the definition of "qualifying income" for such partnerships (known as master limited partnerships) to include income and gains from renewable and alternative energy generation projects, including carbon capture in secure geological storage. Related bill S. 2005.
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Regulatory Certainty Act
|
Referred to Committee on Ways and Means Amends the Internal Revenue Code to revise requirements for the secure geological storage of carbon dioxide for the purpose of the tax credit for carbon dioxide sequestration. Establishes a December 31, 2018, deadline and requirements for regulations that the Internal Revenue Service (IRS) is required, under current law, to establish for determining adequate security measures for the geological storage of the carbon dioxide such that carbon dioxide does not escape into the atmosphere. Related bills H.R. 2010, S. 1663.
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Fossil Energy Research and Development Act of 2018
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Referred to Committee on Science, Space, and Technology, Committee on Transportation and Infrastructure
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Amends the Energy Policy Act of 2005 (P.L. 109-58) to expand the scope of DOE fossil energy research activities that include improving the conversion, use, and storage of CO2 from fossil fuel combustion. Authorizes research, development, demonstration, and commercial application at DOE of carbon capture technologies. Encourages DOE support for large-scale pilot programs (including carbon capture pilot test centers) and for large-scale demonstration projects. Reauthorizes RD&D of carbon storage activities at DOE (including the regional sequestration partnerships). Establishes an RD&D program for carbon utilization activities. Establishes an interagency task force to investigate the potential for a national system of CO2 pipelines. Establishes an RD&D program for carbon removal (including direct air capture) and authorizes a $15 million prize competition to develop direct air capture technologies. Source: CRS. Notes: CCS is carbon capture and sequestration (or storage). CCUS is carbon capture, utilization, and storage. In this report, the amount of CO2 is stated in metric tons, or 1,000 kilograms, which is approximately 2,200 pounds. Hereinafter, the unit tons means metric tons. Author Contact Information [author name scrubbed], Specialist in Energy and Natural Resources Policy
([email address scrubbed], [phone number scrubbed])
Footnotes1.
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Carbon capture and sequestration (CCS) also could be used to capture carbon dioxide (CO2) emissions from power plants that use bioenergy sources instead of fossil fuels. 2.
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See, for example, U.S. DOE, National Energy Technology Laboratory, CO2 Utilization Focus Area, at https://www.netl.doe.gov/research/coal/carbon-storage/research-and-development/co2-utilization. 3.
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DOE, NETL, "Carbon Capture Program," fact sheet, June 2016, at https://www.netl.doe.gov/File%20Library/Research/Coal/carbon%20capture/Carbon-Capture-Factsheet-June-2016.pdf. 4.
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Ibid. 5.
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White House, Report of Interagency Task Force on Carbon Capture and Storage, August 2010, p. 9, at https://energy.gov/sites/prod/files/2013/04/f0/CCSTaskForceReport2010_0.pdf. 6.
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See, for example, Howard J. Herzog, Edward S. Rubin, and Gary T. Rochelle, "Comment on 'Reassessing the Efficiency Penalty from Carbon Capture in Coal-Fired Power Plants,'" Environmental Science and Technology, vol. 50 (May 12, 2016), pp. 6112-6113. 7.
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Flue gas refers to the emissions from combusting fossil fuels to generate steam at the plant. For post-combustion capture using air, the flue gas consists mostly of nitrogen, CO2, and water vapor. 8.
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Amines are a family of organic solvents, which can "scrub" the CO2 from the flue gas. When the CO2-laden amine is heated, the CO2 is released to be compressed and stored, and the depleted solvent is recycled. 9.
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See CRS Report R41325, Carbon Capture: A Technology Assessment, by [author name scrubbed]. 10.
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Injecting CO2 into an oil reservoir often increases or enhances production by lowering the viscosity of the oil, which allows it to be pumped more easily from the formation. The process is sometimes referred to as tertiary recovery or enhanced oil recovery (EOR). 11.
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For a more detailed description of the Great Plains Synfuels plant, see DOE, NETL, "SNG from Coal: Process & Commercialization," at https://www.netl.doe.gov/research/coal/energy-systems/gasification/gasifipedia/great-plains. 12.
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Nitrogen oxides emissions lead to the formation of ozone, a criteria pollutant. 13.
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For more information see DOE, National Energy Technology Laboratory, Oxy-Combustion, at https://www.netl.doe.gov/research/coal/energy-systems/advanced-combustion/oxy-combustion. 14.
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Mathew Wallace et al., A Review of the CO2 Pipeline Infrastructure in the U.S., DOE, DOE/NETL-2014/1681, April 21, 2015, at https://energy.gov/sites/prod/files/2015/04/f22/QER%20Analysis%20-%20A%20Review%20of%20the%20CO2%20Pipeline%20Infrastructure%20in%20the%20U.S_0.pdf. 15.
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Intergovernmental Panel on Climate Change (IPCC) Special Report, Carbon Dioxide Capture and Storage, 2005, p. 181, at https://www.ipcc.ch/report/srccs/. Hereinafter referred to as IPCC Special Report.
16.
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Also, when injected underground to depths greater than 800 meters (about half a mile), the overlying pressure keeps CO2 in a supercritical state, making it less likely to migrate out of the geological formation. 17.
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In this report, the amount of CO2 is stated in metric tons, or 1,000 kilograms, which is approximately 2,200 pounds. Hereinafter, the unit tons means metric tons. 18.
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IPCC Special Report, p. 31. 19.
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Mathew Wallace et al., A Review of the CO2 Pipeline Infrastructure in the U.S., DOE, April 21, 2015, p. 1. 20.
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Ibid. 21.
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DOE, NETL, "Regional Carbon Sequestration Partnership (RCSP) Initiative," at https://www.netl.doe.gov/research/coal/carbon-storage/carbon-storage-infrastructure/rcsp. 22.
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Ibid. 23.
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Sedimentary basins refer to natural large-scale depressions in the Earth's surface that are filled with sediments and fluids and are therefore potential reservoirs for CO2 storage. 24.
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For comparison, in 2016 the United States emitted 1.8 billion tons of CO2 from the electricity generating sector. See U.S. Environmental Protection Agency, Inventory of U.S. Greenhouse Gas Emissions and Sinks 1990-2016, EPA 430-R-18-003, April 12, 2018, pp. ES-6, https://www.epa.gov/ghgemissions/inventory-us-greenhouse-gas-emissions-and-sinks. 25.
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Porosity refers to the amount of open space in a geologic formation—the openings between the individual mineral grains or rock fragments. Permeability refers to the interconnectedness of the open spaces, or the ability of fluids to migrate through the formation. Leakage means that the injected CO2 can migrate up and out of the intended reservoir, instead of staying trapped beneath a layer of relatively impermeable material, such as shale. 26.
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As of 2014. See Vello Kuuskraa and Matt Wallace, "CO2-EOR Set for Growth as New CO2 Supplies Emerge," Oil and Gas Journal, vol. 112, no. 4 (April 7, 2014), p. 66. Hereinafter Kuuskraa and Wallace, 2014. 27.
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As of 2014, nearly two-thirds of oil production using CO2 for EOR came from the Permian Basin, located in western Texas and southeastern New Mexico. Kruskaa and Wallace, 2014, p. 67. 28.
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The U.S. Environmental Protection Agency (EPA) regulates this practice under authority of the Safe Drinking Water Act, Underground Injection Control (UIC) program. See the EPA UIC program at https://www.epa.gov/uic/class-ii-oil-and-gas-related-injection-wells. 29.
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Coal bed and coal seam are interchangeable terms. 30.
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IPCC Special Report, p. 217. 31.
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DOE's Office of Fossil Energy refers to its CCS program activities as the Carbon Capture, Utilization, and Storage Research. See https://www.energy.gov/fe/science-innovation/office-clean-coal-and-carbon-management. 32.
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P.L. 115-123, §41119. A tertiary injectant refers to the use of CO2 for EOR or enhanced natural gas recovery. 33.
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U.S. DOE, National Energy Technology Laboratory, CO2 Utilization Focus Area, at https://www.netl.doe.gov/research/coal/carbon-storage/research-and-development/co2-utilization. 34.
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U.S. DOE, National Energy Technology Laboratory, CO2 Utilization Focus Area. 35.
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Reflects an estimate as of 2011, which included 50 million tons for EOR in the United States. Global CCS Institute, Accelerating the Uptake of CCS: Industrial use of Captured Carbon Dioxide, December 20, 2011, http://hub.globalccsinstitute.com/publications/accelerating-uptake-ccs-industrial-use-captured-carbon-dioxide. CO2 use for EOR in the United States in 2014 was estimated at 68 million tons in 2014 (see footnote 38), so the global amount is likely higher. 36.
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Global CCS Institute, 2011. 37.
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For a detailed assessment of DAC technology, see the American Physical Society, Direct Air Capture of CO2 With Chemicals, A Technology Assessment for the APS Panel on Public Affairs, June 1, 2011, at https://www.aps.org/policy/reports/assessments/upload/dac2011.pdf. Hereinafter American Physical Society, 2011. 38.
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Generally, the more dilute the concentration of CO2, the higher the cost to extract it, because much larger volumes are required to be processed. By comparison, the concentration of CO2 in the atmosphere is about 0.04%, whereas the concentration of CO2 in the flue gas of a typical coal-fired power plant is about 14%. 39.
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American Physical Society, 2011, p. 13. 40.
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Robert F. Service, "Cost Plunges for Capturing Carbon Dioxide from the Air," Science, June 7, 2018, http://www.sciencemag.org/news/2018/06/cost-plunges-capturing-carbon-dioxide-air. 41.
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Lawrence Irlam, The Costs of CCS and Other Low-Carbon Technologies in the United States-2015 Update, Global CCS Institute, July 2015, p. 1, http://www.globalccsinstitute.com/publications/costs-ccs-and-other-low-carbon-technologies-2015-update. 42.
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Slipstream refers to the exhaust gases emitted from the power plant. NRG News Release, "NRG Energy, JX Nippon Complete World's Largest Post-Combustion Carbon Capture Facility On-Budget and On-Schedule," January 10, 2017, at http://investors.nrg.com/phoenix.zhtml?c=121544&p=irol-newsArticle&ID=2236424. 43.
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Global CCS Institute, Projects Database, "Petra Nova Carbon Capture," at http://www.globalccsinstitute.com/projects/petra-nova-carbon-capture-project; and Christa Marshal and Edward Klump, "Carbon Capture Takes a 'Huge Step' with First U.S. Plant," Energy Wire, January 10, 2017, at https://www.eenews.net/energywire/stories/1060048090/search?keyword=petra+nova. 44.
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NRG News Release, "NRG Energy, JX Nippon Complete World's Largest Post-Combustion Carbon Capture Facility On-Budget and On-Schedule," January 10, 2017, at http://investors.nrg.com/phoenix.zhtml?c=121544&p=irol-newsArticle&ID=2236424. 45.
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U.S. Department of Energy (DOE), National Energy Technology Laboratory (NETL), "Recovery Act: Petra Nova Parish Holdings: W.A. Parish Post-Combustion CO2 Capture and Sequestration Project," at https://www.netl.doe.gov/research/coal/project-information/fe0003311. 46.
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For an analysis of carbon capture and sequestration (CCS) projects funded by the American Recovery and Reinvestment Act (P.L. 111-5), see CRS Report R44387, Recovery Act Funding for DOE Carbon Capture and Sequestration (CCS) Projects, by [author name scrubbed]. 47.
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FutureGen is discussed in more detail in CRS Report R44387, Recovery Act Funding for DOE Carbon Capture and Sequestration (CCS) Projects, by [author name scrubbed]. 48.
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U.S. Environmental Protection Agency, "2015 Greenhouse Gas Emissions from Large Facilities, W.A. Parish," at https://ghgdata.epa.gov/ghgp/service/facilityDetail/2015?id=1006868&ds=E&et=FC_CL&popup=true. 49.
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U.S. Environmental Protection Agency, Inventory of U.S. Greenhouse Gas Emissions and Sinks 1990-2016, EPA 430-R-18-003, April 12, 2018, pp. ES-6, https://www.epa.gov/ghgemissions/inventory-us-greenhouse-gas-emissions-and-sinks. 50.
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DOE, NETL, "Recovery Act: Petra Nova Parish Holdings: W.A. Parish Post-Combustion CO2 Capture and Sequestration Project," at https://www.netl.doe.gov/research/coal/project-information/fe0003311. 51.
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SaskPower is the principal electric utility in Saskatchewan, Canada. 52.
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MIT Carbon Capture & Sequestration Technologies, CCS Project Database, "Boundary Dam Fact Sheet: Carbon Capture and Storage Project," at http://sequestration.mit.edu/tools/projects/boundary_dam.html. 53.
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Ibid. 54.
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SaskPower, BD3 Status Update: April 2018, at https://www.saskpower.com/about-us/our-company/blog/bd3-status-update-april-2018. 55.
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Net power refers to the gross amount of power generated by the plant minus the electricity used to operate the plant. In this case, the electricity used to operate the plant includes the amount of electricity used for carbon capture. 56.
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Authority to expend American Recovery and Reinvestment Act (Recovery Act; P.L. 111-5) funds expired in 2015. An analysis of Recovery Act funding for CCS activities at DOE is provided in CRS Report R44387, Recovery Act Funding for DOE Carbon Capture and Sequestration (CCS) Projects, by [author name scrubbed]. 57.
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U.S. Congress, House Committee on Appropriations, Subcommittee on Energy and Water Development, and Related Agencies, Energy and Water Development Appropriations Bill, 2019, Report to accompany H.R. 5895, 115th Cong., 2nd sess., May 21, 2018, H.Rept. 115-697 (Washington: GPO, 2018), p. 93. 58.
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U.S. Congress, Senate Committee on Appropriations, Subcommittee on Energy and Water Development, Energy and Water Development Appropriations Bill, 2019, report to accompany S. 2975, 115th Cong., 2nd sess., May 24, 2018, S.Rept. 115-258 (Washington: GPO, 2018), p. 84. 59.
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In FY2017, Congress rescinded $240 million in unobligated balances from the total FER&D account. The FY2019 Administration request subtracted the rescission from the total FY2017 FER&D enacted amount in its budget justification. Table 2 does not show that rescission, but it reflects what Congress included in its budget documents for FY2017—$668 million total enacted for FER&D. The congressional Joint Explanatory Statement for FY2017 shows the $240 million rescission offsetting DOE's total appropriations.
60.
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The Findings section of both bills states that "since 1968, tax-exempt private activity bonds have been used to provide access to lower-cost financing for private businesses that are purchasing new capital equipment for certain specified environmental facilities, including facilities that reduce, recycle, or dispose of waste, pollutants, and hazardous substances." 61.
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P.L. 114-94, the Fixing America's Surface Transportation Act (FAST Act). Currently under the FAST Act, "the term 'covered project' means any activity in the United States that requires authorization or environmental review by a Federal agency involving construction of infrastructure for renewable or conventional energy production, electricity transmission, surface transportation, aviation, ports and waterways, water resource projects, broadband, pipelines, manufacturing, or any other sector as determined by a majority vote of the Council." See 42 U.S.C. 4370m(6). 62.
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63.
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IPCC Special Report. 64.
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U.S. Environmental Protection Agency, Inventory of U.S. Greenhouse Gas Emissions and Sinks 1990-2016, EPA 430-R-18-003, April 12, 2018, pp. ES-6, https://www.epa.gov/ghgemissions/inventory-us-greenhouse-gas-emissions-and-sinks |
Coal bed and coal seam are interchangeable terms. |
59. |
IPCC Special Report, p. 217. |
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60. |
Edward Klump and Nathanial Gronewald, "After Petra Nova, What's Next for NRG and Carbon Capture?," EnergyWire, April 14, 2017, at https://www.eenews.net/energywire/stories/1060053094. |
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61. |
For a brief discussion of FutureGen, see CRS Report R44387, Recovery Act Funding for DOE Carbon Capture and Sequestration (CCS) Projects, by [author name scrubbed]. |
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62. |
White House, Report of Interagency Task Force on Carbon Capture and Storage, August 2010, p. 14. |
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63. |
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