April 5, 2017 – The National Enhanced Oil Recovery Initiative (NEORI) today hailed the leadership of Senators Rob Portman (R-OH) and Michael Bennet (D-CO) in introducing bipartisan legislation to accelerate the deployment of carbon capture technologies at power plants and industrial facilities.  The Carbon Capture Improvement Act was introduced in the Senate today.

“Fifty years of carbon capture experience in multiple industries, combined with the recent successful commercial-scale demonstration of carbon capture at an existing coal power plant in Texas, shows that the technology works,” said Brad Crabtree, vice president for fossil energy at the Great Plains Institute, which co-convenes NEORI.  “Pairing tax-exempt private activity bonds with the 45Q tax credit can unleash private capital to scale up further deployment of carbon capture and bring costs down.”

The Carbon Capture Improvement Act will authorize states to use private activity bonds to help finance the purchase and installation of carbon capture equipment. Private activity bonds are widely used to help develop U.S. infrastructure, such as airports and water and sewer projects, including through public-private partnerships. The bonds will reduce financing costs for carbon capture projects because interest payments to bondholders are exempt from federal tax and the bonds typically have longer repayment terms than bank debt.

Access to private activity bonds, together with extension and reform of the Section 45Q tax credit, will give carbon capture project developers another important incentive in what NEORI members hope will be a toolkit of financing mechanisms enacted as part of comprehensive tax reform legislation expected to be considered by Congress later this year.

“We’ve seen bipartisan support for incentivizing carbon capture infrastructure because it’s a practical way to create skilled jobs and protect the environment,” said Bob Perciasepe, president of the Center for Climate and Energy Solutions. “Leadership in carbon capture technologies also gives the United States a first-mover advantage in a globally important market.”

For over 40 years, the U.S. independent oil and gas industry has led the world in CO2-EOR and could produce billions of barrels of additional domestic oil from existing fields, while safely and permanently storing billions of tons of CO2.  CO2-EOR currently provides nearly four percent of domestic oil production and utilizes roughly 65 million tons of CO2 annually.  According to a recent U.S. Department of Energy study, an increased supply of CO2 could enable the EOR industry to produce an additional 21-63 billion barrels of oil with today’s technology and store 10-20 billion tons of CO2, or up to four years’ worth of national emissions.

Carbon capture can play a critical role in reducing carbon emissions from the use of our nation’s oil, coal, natural gas and biomass resources in electric power generation and a wide range of industrial activities, including natural gas processing, ethanol, fertilizer and hydrogen production, refining, and the manufacture of cement, steel and chemicals.

NEORI brings together coal, oil and gas, electric power, ethanol, chemical and energy technology companies, labor unions, and national environmental and energy policy organizations dedicated to expanding deployment of carbon capture as an energy, economic and environmental solution for our nation. NEORI is convened by the Center for Energy and Climate Solutions (C2ES) and Great Plains Institute (GPI). 

 

SUPPORTIVE NGO, BUSINESS, ACADEMIC and LABOR COMMUNITY STATEMENTS 

“Carbon capture and storage technology can reduce harmful carbon pollution from power plants and industrial sources, create jobs at home and increase American competitiveness. As a complement to critical actions to use energy more efficiently and to switch to renewable energy sources, carbon capture technology can make important contributions to our efforts to limit damaging climate change. This bill would help make financing carbon capture plants easier and increase the availability and use of this technology.” – David Hawkins, Director of Climate Programs, Natural Resources Defense Council

“Peabody believes carbon capture and storage is a key technology for reducing greenhouse gas emissions. This legislation is a good step toward creating policy parity for use of CCS in the energy and industrial sectors.” – Michael Flannigan, SVP, Global Government Affairs, Peabody Energy 

“Private activity bonds are a well-developed tool that has been used for decades to cut the cost of financing a broad range of energy-related infrastructure. The time is right to apply them to accelerating carbon capture projects with major economic and environmental benefits – and little cost to taxpayers.”Dan Reicher, Executive Director, Stanford Steyer-Taylor Center for Energy Policy and Finance

“The UWUA supports the Carbon Capture Improvement Act and reform of the 45Q tax credit to expand the deployment of carbon capture technology as stable, long-term financing and tax incentives are essential to securing the future for power plants that form the economic bedrock of so many communities around our nation.”  – Mike Langford, President, Utility Workers Union of America

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Diverse Coalition Sends Letter to Ways and Means on 45Q

February 6, 2017

Feb. 6, 2017 – Today, a diverse coalition including coal companies, oil companies, technology companies, labor unions, and environmental NGOs sent a letter to the House Ways and Means Committee on 45Q.  Read the full letter here. Digg this post Recommend on Facebook Share on google plus Share on Linkedin share via Reddit Share with […]

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NEORI Statement on Gov. Rick Perry’s Confirmation Hearing to Serve as DOE Secretary

January 19, 2017

Jan. 19, 2017 – The National Enhanced Oil Recovery Initiative (NEORI) released the following statement today in response to comments on carbon capture by Governor Rick Perry during his confirmation hearing to serve as Secretary of the U.S. Department of Energy. “We are encouraged by Governor Perry’s acknowledgement of the important role carbon capture can […]

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NEORI Commends NRG on Petra Nova Milestone

January 10, 2017

Jan. 10, 2017 – The National Enhanced Oil Recovery Initiative commends NEORI member NRG for its visionary leadership in commencing commercial operation of its groundbreaking Petra Nova carbon capture project on time and on budget. The first commercial-scale retrofit of an existing coal fired power plant for in the U.S. and the largest post-combustion carbon […]

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NEORI Applauds Industrial Carbon Capture Project Milestone

December 21, 2016

Dec. 21, 2016 – Today, U.S. Secretary of Energy Ernest Moniz issued a conditional commitment to a $2 billion loan guarantee for the Lake Charles Methanol Project, LLC, which participates in the National Enhanced Oil Recovery Initiative. Lake Charles Methanol’s project on the Gulf Coast of Louisiana will produce methanol, hydrogen, and other chemicals from […]

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Letters of Support from Governors for Carbon Capture Incentives

December 21, 2016

In the past few weeks, a number of Governors have issued letters of support for Federal incentives for carbon capture technology, including 45Q.  These include letters from:  Gov. Matthew Mead (WY), Gov. Steve Bullock (MT), Gov. Asa Hutchinson (AR), and the Western Governors Association. Digg this post Recommend on Facebook Share on google plus Share […]

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Wyoming Gov. Mead Writes to Sen. Majority Leader McConnell Asking That 45Q Be Passed This Year

November 22, 2016

Yesterday, Wyoming Gov. Matt Mead wrote a letter to Senate Majority Leader Mitch McConnell supporting commercial deployment incentives for CO2-EOR, including 45Q. Digg this post Recommend on Facebook Share on google plus Share on Linkedin share via Reddit Share with Stumblers Tweet about it

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NEORI letter to the Senate Finance Committee

November 16, 2016

Today, representatives of industry, organized labor and the environmental community sent a letter to the Senate Finance Committee supporting accelerated commercial deployment of carbon capture, utilization and storage (CCUS) as an energy, economic and environmental priority for our nation. Participants in the National Enhanced Oil Recovery Initiative (NEORI) represent an unprecedented coalition that includes: three […]

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NEORI Reaches out to the Democratic and Republican Transition Teams

November 1, 2016

Nov. 1, 2016 – The National Enhanced Oil Recovery Initiative (NEORI) submitted memos identifying policy priorities to the Democratic Presidential Transition Team and the Republican Presidential Transition Team. As representatives of industry, organized labor and the environmental community, we support accelerated commercial deployment of carbon capture, utilization and storage (CCUS) as an energy, economic and […]

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Nearly One-Fifth of U.S. Senate Signs on to Major Carbon Capture Legislation

October 4, 2016

Both Senate and House Legislation Reflect Extraordinary Bipartisan Support of Critical Path to U.S. Energy Security and Emissions Reductions   October 4, 2016 – The National Enhanced Oil Recovery Initiative (NEORI) and Coal Utilization Research Council (CURC) recognize an important milestone in growing support for carbon capture: a total of 19 U.S. Senators are now co-sponsoring […]

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