Carbon Capture and Storage

Carbon capture and storage, or CCS, is the process of capturing carbon dioxide (CO₂) emissions before they enter the earth's atmosphere and safely storing the CO₂ in geological formations.

While these terms are sometimes used interchangeably, carbon storage most commonly refers to the geologic storage of pressurized liquid CO₂ in subsurface formations like porous rock, coal seams, aquifers, or depleted oil and gas reservoirs.

Carbon sequestration refers to the overall process of removing atmospheric carbon and storing the carbon in organic matter and geological formations.

A growing number of companies are committing to reducing emissions to net zero within the next few decades. However, it will take decades to completely shift to renewable energy. With this in mind, it’s crucial to act now on carbon capture and sequestration to ensure equitable access to energy while reducing our carbon footprint.

To learn more about the effectiveness and need for CCS, check out our blog article: Why CCS Technologies are Instrumental as the World Transitions to Clean Energy

Geological carbon storage is the practice of storing CO₂ in the earth's subsurface, often through injection into saline formations and other porous rocks.

Saline storage is a type of CO₂ storage that involves trapping the CO₂ in deep saline formations. Saline storage has multiple advantages, including a large estimated carbon storage capacity in the United States and easy access for most large-scale CO₂ emitters.

Multiple industries can benefit from sequestering carbon, including:

• Fertilizer (ammonia)
• Fossil fuels (oil, natural gas, coal)
• Power
• Steel
• Manufacturing

A variety of factors influence your site's ability to succeed with carbon capture and storage, including location, proximity to geological formations, and other non-technical factors.

Our team of experts can help you explore your options for carbon storage with a complimentary, risk-free assessment.

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A CCS project can be broken down into 5 main stages.

• Feasibility: Geotechnical and operations experts examine a storage site for geologic and economic potential
• Modeling: Based on the results of the feasibility study, a detailed geologic assessment is completed and a permitting plan is drafted
• Characterization and Permitting: A test well is drilled and used to collect data for additional models and to file for permits. This phase includes the completion of construction, implementation and monitoring plans
• Construction: The carbon capture infrastructure is designed and built in addition to the drilling of monitoring and injection wells.
• Operation and Monitoring: This phase kicks off the injection of CO₂ and monetization of 45Q tax credits. Consistent long-term monitoring is performed by subsurface experts until 10 years after each well is closed.

For more information on each project stage, check out our blog article: A Roadmap to CCS Success

Initial investments are needed for the stages of CCS before tax credits or incentives can be monetized. Site owners and managers typically rely on one of these funding options to raise capital:

• Investment Funds
• Tax Equity
• Self-Funding

Carbon capture and storage is an immediate solution for companies to quickly reach net-zero emissions.

45Q is a part of the tax code that provides tax credits for each metric ton of carbon dioxide captured and stored, used for enhanced oil recovery (EOR), or utilized for other sequestration projects. These credits provide an incentive for companies to invest in the sequestration of carbon emissions while reaping tax benefits.

To be eligible for 45Q tax credits, sites must meet CO₂ capture and storage requirements as well as non-technical requirements.

For more information on your eligibility for 45Q, check out our white paper or connect with our experts.

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The Low Carbon Fuel Standard (LCFS) is a standard in the state of California that allows companies that fall below emission benchmarks to still receive credits.

To be eligible for LCFS, a site must be located inCalifornia and continue to meet the LCFS carbon intensity standards annually.

48A is a recent credit that was introduced to allow sites to increase CO₂ emission capture due to lower benchmarks and requirements for efficiency.

A site is eligible to receive 48A credits if specific carbon capture and storage criteria are met.

CCS site operations refers to the practice of maintaining and managing a storage site throughout the project's lifetime.

Carbon storage site operations can last for anywhere between 20-90 years, depending on the length of the injection phase (12-30 years) and the post-injection phase (5-50 years).

Site operations is comprised of a variety of tasks across the project lifetime, including:

• Injection monitoring
• Plume modeling and monitoring
• Well operation, inspection and maintenance
• Reporting and compliance
• Decommissioning and site closure
• Long-term monitoring

Injection monitoring is the ongoing process of monitoring injection rates and pressures to ensure safe operation.

Captured CO2 can be injected for up to 30 years.

Plume modeling and monitoring is the practice of observing the CO2 plume to watch current behavior, predict future movement and ensure safe sequestration based on the model.

Well operation, inspection and maintenance is the continual monitoring and examination of the injection well to ensure safety is being maintained. If a problem is identified, corrective action should be taken by the site operations manager and team.

Reporting and compliance refers to the verification of CCS project details through the submission of reports to federal agencies. Submitting these reports ensures that the project can continue to qualify for tax credits or direct payments through 45Q.

Quarterly and annual reports documenting the amount of CO2 stored must be submitted to the IRS, as well as semi-annual environmental compliance reports are required by the EPA.

Decommissioning and site closure is the closing of the injection well and full remediation of the storage site.

Long-term monitoring is the process of supervising the CO2 plume's stability using sensors, updating models based on the actual plume's behavior and reporting to the EPA.

Post-injection monitoring of a storage site can take between 5-50 years, based on the proven stability of the CO2 plume.

An effective CCS site operations partner will have these characteristics:

• Stability
• CCS Experience
• Scientific Expertise
• Data Science and Modeling Capabilities
• Regulatory Compliance
• Business Model
• End-to-End Service

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You can get started with CCS site operations by getting in touch with our team of CCS experts.

 

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Carbon capture and storage risk refers to the probability of a carbon dioxide capture and storage project resulting in an adverse outcome.

CCS risk is the probability of an unwanted result, whereas CCS uncertainty stands for the range of possible good or bad outcomes.

Types of CCS (or CCUS) risk include:

• Policy and stakeholder risk
• Economic risk
• Technical risk

CCS policy and stakeholder risk refers to risk created by regulations put in place by government agencies like the United States Environmental Protection Agency, as well as stakeholders such as investors and community members.

Policy and stakeholder-related carbon storage risks include:

• Government incentives or task credits
• Policy stability
• Regulatory stability
• Stakeholder engagement or acceptance

CCS economic risk is risk resulting from the financial aspects of a carbon dioxide capture and storage project.

Economic risk involved in CCS can include:

• High capital and operational costs
• Borrowing costs
• Insurance costs
• Revenue/incentive stability
• Cost inflation

CCS technical risk is risk created by operational and scientific complexities involved in a carbon capture and storage project.

Technical risks that can be a part of a carbon sequestration project can include:

• Maturity levels of CCS technologies
• High-level expertise
• Project execution
• Safety

Risk is present during each stage of a geological storage project, including CO₂ capture, transport and long-term storage.

Carbon capture and storage risk arises from multiple factors, including:

• Large capital investments, with significant funds required early in the process
• Lengthy project timelines often spanning decades
• Technical complexity, with interdependent factors and technologies at different maturity levels
• Multiple stakeholders spanning regulatory bodies like the U.S. Department of Energy, project investors, carbon markets and community members

 

CCS risk can be successfully managed at each stage through strategic and proactive approaches to risk mitigation.

Multiple tactics can be used to de-risk or reduce CCS risk, including:

• Cross-chain risk management
• Project schedule and budget interaction
• System design integration

 

Utilizing an integrated and methodical approach to CCS risk has multiple benefits:

• Reduce uncertainty
• Provide a clearer picture of the risk profile
• Improve project outcomes

 

Managing carbon storage risk requires deep technical expertise and experience, including:

• Subsurface geology and geophysics
• Wellbore drilling and CO₂ injection site technologies and methods
• Monitoring technologies
• Modeling and data analysis of geological formations
• CO₂ storage site operations
• Program management

 

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