Carbon Capture and Storage
Carbon capture and storage is an excellent option used by companies that want to reduce or eliminate CO2 emissions while monetizing relevant tax credits. Keep reading for answers to popular questions, get a no-cost storage assessment, or get in touch with our team of experts.
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)
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.
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
Monetizing Your Carbon Emissions With 45Q Tax Credits
Tax Credits and Incentives
Tax credits and other financial incentives can be leveraged by companies to improve operational profitability while reducing greenhouse gas emissions. Common carbon credits used to monetize the sequestration of CO2 emissions include 45Q credits and 48A credits.
Continue reading for answers to the most asked questions, download our white paper on monetizing 45Q tax credits, or get in touch with our experts for more information.
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.
Seven Things to Look for in a Carbon Storage Site Operations Partner
CCS Site Operations
Carbon capture and storage requires a long-term plan to ensure CO2 is safely stored from injection to site closure. An effective site operations partner sets projects up for lasting success by maximizing tax credits while minimizing risks and costs.
Read on for answers to the most asked questions, download our white paper on CCS site operations, or get in touch with our experts for more information.
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:
- CCS Experience
- Scientific Expertise
- Data Science and Modeling Capabilities
- Regulatory Compliance
- Business Model
- End-to-End Service
Get our white paper to learn how the right site operations partner can help you maximize tax credits while minimizing risks and costs.