Large-scale carbon capture and storage (CCS) projects could cut back the amount of CO2 available for commercial use in the US, with as much as one-third of supply potentially being put at risk.
Speaking during a gasworld webinar, Bruce Woerner of Woerner CO2 Consulting said the threat was real and should not be ignored, given the way the supply and demand picture is shaping.
He said the impact of the Inflation Reduction Act, with its 45Q tax credit, which offers $85 per tonne for CO2 sequestration and $60 per tonne for utilisation, was about to be felt, as projects begin to come onstream.
He said incentives have encouraged ethanol producers, in particular, to redirect CO2 away from the merchant market in favour of applications such as sustainable aviation fuel or for storage to secure carbon credits.
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