A new bipartisan bill to improve the 45Q carbon capture utilisation and storage (CCUS) tax credit by increasing the credit value for carbon capture projects and by eliminating the annual carbon capture thresholds is being introduced in North Dakota, US.
Dubbed the Coordinated Action to Capture Harmful (CATCH) Emissions Act, the bill was introduced on Thursday (24th June) by US Senator Kevin Cramer and Senators Ben Ray Luján and John Barrasso.
“North Dakota is at the forefront of carbon capture and establishing itself as a world leader in the development of clean, reliable energy by applying these technologies to lignite, oil, and ethanol facilities,” said Senator Cramer.
“Our bill would encourage further utilisation of the carbon capture tax credit for projects of all sizes and increase the value of the credit for capture and use, both of which would lead to more investment, more innovation, and a responsibly reduced carbon footprint.”
If passed the CATCH Act would build on the Carbon Capture Utilisation and Storage Tax Credit Amendments Act, a bipartisan bill Senator Cramer helped introduce earlier this year which would extend the commence construction window for CCUS projects and allow for direct payment of the tax credit.
In addition to the it will:
- Increase the 45Q credit value for CCUS projects at industrial facilities and power plants to incentivise wider adoption, and
- Eliminate the annual CO2 capture thresholds to enable more facilities and industries to participate and qualify for the credit.
Mac McLennan, President and CEO of Minnkota Power Cooperative, endorsed the CATCH Act and thanked Senator Cramer for his support of the bill. “As the energy industry faces rapid change, Senator Cramer’s leadership on preserving reliable, affordable and environmentally responsible electricity is more important than ever,” said McLennan.
“Carbon capture technologies, like the Minnkota-led Project Tundra, remain critical to answering our nation’s call for a lower carbon footprint, while retaining the resilient generators that provide irreplaceable stability to the electric grid. The CATCH Act is an important policy support enhancement that would bring Project Tundra and many other visionary projects a step closer toward commercialisation.”