This report “Carbon Capture and Storage in the United States” developed by the Congressional Budget Office examines the status, federal support, and future potential of carbon capture and storage (CCS)- a process that involves removing CO2 from the emissions of power plants and industrial facilities and storing it permanently underground. Fifteen CCS facilities are currently operating in the United States. Together, they have the capacity to capture 0.4 percent of the nation’s total annual CO2 emissions.
The main reason CCS is used to such a limited extent is that the cost to implement CCS technology exceeds its value in most potential settings. The federal government subsidises the development of CCS technology largely through funding for the Department of Energy; it subsidises the use of CCS through tax provisions that reduce the cost of capturing and storing CO2. Companies that capture and store CO2 are eligible for a tax credit per metric ton of carbon dioxide sequestered. That tax provision, the section 45Q tax credit, provides an incentive for the use of CCS and reduces federal revenues.
Access the complete report here.
