The question of how US government incentives for sequestering captured CO2 can work alongside the utilisation of captured CO2 in end markets is being examined in a new bill introduced by two US senators.
The senators – Democrat Sheldon Whitehouse and Republican Bill Cassidy – have introduced the Captured Carbon Utilization Parity Act. The bill is intended to create parity between the credit value for utilisation and sequestration in the 45Q carbon capture tax credit that applies in the US.
“While we have made progress on lowering emissions with the Inflation Reduction Act, the world is on track to well overshoot the climate goals of the Paris Agreement. We are going to need robust investment in both carbon utilisation and sequestration to lead the planet to safety,” said Whitehouse. “Our bipartisan Carbon Capture and Utilization Parity Act would bring the value of the tax credits for carbon utilisation in line with the incentives for sequestration, while supporting continued investment in carbon-neutral products.”
Carbon capture and utilisation is a broad term used to describe the many ways that captured carbon oxides can be used or recycled to produce carbon-neutral products or services that today mostly come from fossil fuels.
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