PDF Publication Title:
Text from PDF Page: 071
Putting CO2 to Use: Creating Value from Emissions Technical analysis Box 12. Creating a CO2 market: The case of the 45Q tax credit In February 2018, the US Congress passed legislation to expand and reform a key tax credit called 45Q. The expanded 45Q provisions are designed to encourage innovation and adoption of technologies related to CCUS, including technologies linked to carbon capture and the conversion of CO2 into useable products. The tax credit is available for 12 years from commencement of operation. In the case of CO2 use, the level of tax credit will increase progressively from USD 17/tCO2 in 2018 to USD 35/tCO2 in 2026; thereafter, credits will be indexed to inflation. In addition to being in construction by 2024, three conditions need to be satisfied to claim the credit: the CO2 would have otherwise been released into the air; a minimum of 25 000 tCO2 per year from each carbon capture facility must be converted to products; a life-cycle assessment by the regulator must show a benefit to the climate and the tax credit will only apply to the portion of the converted CO2 that can be shown to reduce overall emissions. The policy encourages companies to seek CO2 capture from the sources with the lowest cost, which are likely to be hydrogen plants, natural gas processing facilities and bioethanol mills. While the legislation has been passed, there are still several issues that need to be clarified by the government, including requirements for life-cycle analysis and the transferability of the credit to parties other than the owner of the carbon capture equipment (NETL, 2019). The extent to which the 45Q tax credit will drive CO2 uptake for conversion into products is uncertain, but is expected to be relatively limited. For fuels and chemicals, the CO2 is ultimately released, suggesting that only a share of the USD 35/tCO2 tax credit will be available. This is unlikely to be sufficient to close the large cost gap with incumbent products unless combined with other incentives. Products offering permanent retention of carbon, such as concrete and carbonate materials, are expected to be able to claim higher credits, but typically have lower CO2 uptake rates. IEA analysis suggests that the tax credit could trigger a surge in carbon capture investment, with the bulk of the captured CO2 earmarked for underground uses, namely EOR and geological storage (IEA, 2018b). For example, oil production through CO2-EOR could increase by 50 to 100 thousand barrels per day, which corresponds with an additional CO2 consumption of at least 10 to 30 million tonnes per year (IEA, 2018b). The expected activity growth is facilitated by the pipeline network already in place for CO2-EOR. Firms seeking early opportunities to integrate CO2 into products will benefit from the expansion of this infrastructure as a result of a growing CO2 market. The 45Q tax credit is an example of how policy incentives can drive a joint market for captured CO2 and encourage the rollout of CO2 capture and transport capacity providing multiple services. Labelling, certification and testing Carbon footprint labelling is a means for individual and industrial consumers to recognise the sustainability of a company’s products. In recent years, organisations have been increasingly looking for opportunities to lower their total CO2 emissions. Labels can help to identify these opportunities and lower the carbon footprint of their supply chains. Environmental labelling has PAGE | 70 IEA. All rights reserved.PDF Image | Putting CO2 to Use Creating value from emissions
PDF Search Title:
Putting CO2 to Use Creating value from emissionsOriginal File Name Searched:
putting_co2_to_use.pdfDIY PDF Search: Google It | Yahoo | Bing
NFT (Non Fungible Token): Buy our tech, design, development or system NFT and become part of our tech NFT network... More Info
IT XR Project Redstone NFT Available for Sale: NFT for high tech turbine design with one part 3D printed counter-rotating energy turbine. Be part of the future with this NFT. Can be bought and sold but only one design NFT exists. Royalties go to the developer (Infinity) to keep enhancing design and applications... More Info
Infinity Turbine IT XR Project Redstone Design: NFT for sale... NFT for high tech turbine design with one part 3D printed counter-rotating energy turbine. Includes all rights to this turbine design, including license for Fluid Handling Block I and II for the turbine assembly and housing. The NFT includes the blueprints (cad/cam), revenue streams, and all future development of the IT XR Project Redstone... More Info
Infinity Turbine ROT Radial Outflow Turbine 24 Design and Worldwide Rights: NFT for sale... NFT for the ROT 24 energy turbine. Be part of the future with this NFT. This design can be bought and sold but only one design NFT exists. You may manufacture the unit, or get the revenues from its sale from Infinity Turbine. Royalties go to the developer (Infinity) to keep enhancing design and applications... More Info
Infinity Supercritical CO2 10 Liter Extractor Design and Worldwide Rights: The Infinity Supercritical 10L CO2 extractor is for botanical oil extraction, which is rich in terpenes and can produce shelf ready full spectrum oil. With over 5 years of development, this industry leader mature extractor machine has been sold since 2015 and is part of many profitable businesses. The process can also be used for electrowinning, e-waste recycling, and lithium battery recycling, gold mining electronic wastes, precious metals. CO2 can also be used in a reverse fuel cell with nafion to make a gas-to-liquids fuel, such as methanol, ethanol and butanol or ethylene. Supercritical CO2 has also been used for treating nafion to make it more effective catalyst. This NFT is for the purchase of worldwide rights which includes the design. More Info
NFT (Non Fungible Token): Buy our tech, design, development or system NFT and become part of our tech NFT network... More Info
Infinity Turbine Products: Special for this month, any plans are $10,000 for complete Cad/Cam blueprints. License is for one build. Try before you buy a production license. May pay by Bitcoin or other Crypto. Products Page... More Info
CONTACT TEL: 608-238-6001 Email: greg@infinityturbine.com (Standard Web Page)