Happy Thursday!
Did anyone
happen to read The Houston Chronicle’s Business Section on August 17,
2024, their article titled, “Rising expenses threaten carbon capture”? The article speaks in regard to how costs for
carbon capture projects have increased greatly from the prices a few years ago,
when the Inflation Reduction Act (IRA) of 2022 was released with its tax
credits. The carbon capture industry
which looked as if it may be the next big thing to help the oil and gas
industry may need help itself. The costs
have increased between 23% to 38% for the carbon capture projects in the last
three years, and they aren’t expecting it to reduce anytime soon. The growing industry has had just under 200
projects announced in the last few years and many may be in jeopardy due to costs,
or a stymied permitting process nonetheless there have been a few fortunate
ones who have begun construction (See our Blog in May 2023). It doesn’t appear the budding industry is giving
up just, yet they have approached Congress to influence them to release more tax
credits which are not expected until 2027 in the current law. Currently, the industry and the think tanks
have only reduced the number of metric tons expected to be contained by the
mid-2030s, nonetheless everyone will be watching those which start up first. If you would like to read more of The
Houston Chronicle’s article in Microsoft Start, please click the
link: Texas oil companies pinned climate promises on carbon capture. Now, cost spikes threaten those plans (msn.com).
If you would
like to know more about the U.S. Environmental Protection Agency’s carbon
capture permitting section, please check out our Blog in November 2023.
If you would
like help in looking into how to update your liquids terminal and pipelines or
see what is underneath your feet to help reduce your emissions, contact us via
email in the blog and check out our ESC's website for contact
information!
We hope you have a wonderful evening, and a great rest of
your week! Keep cool!
**Disclaimer: You may be charged a fee to read The
Houston Chronicle’s article. **