Carbon capture projects are often billion-dollar investments that require long-term certainty to pencil out and attract investment. New modeling from the Rhodium Group, a leading research firm that\u2019s partnered with BlackRock<\/a> to analyze climate risk among other things, puts in perspective exactly how much of a difference long-term extension to 45Q can make. And it\u2019s big.<\/p>\n\n\n\n The long-term extension of 45Q is consistent with a bill introduced by Reps. Schweikert (R-AZ) and Wenstrup (R-OH) – and endorsed by House Minority Leader Kevin McCarthy (R-CA) as part of his climate package – that would make the credit permanent. Rhodium also analyzed a five-year extension of the credit, which was previously put forth earlier this year by Sens. Capito (R-WV), Whitehouse (D-RI), Barrasso (R-WY), and Cramer (R-ND). Both a permanent extension and a 5-year extension were found to generate gigatons of emission reductions and new investments in both the power<\/a> and industrial<\/a> sectors.<\/p>\n\n\n\n We\u2019ve boiled down their analysis into 5 fast facts:<\/p>\n\n\n\n New U.S. Carbon Capture Jobs by Source Facility<\/span><\/p>\n (Low-Cost, Permanent 45Q Scenario)<\/span><\/p> Projected Number of Power Plants with Carbon Capture<\/span><\/p>\n (Low-Cost, Permanent 45Q Scenario)<\/span><\/p> Industrial Carbon Capture Deployment, Permanent Extension, Low-cost Case (2050)<\/span><\/p>\n Forecasted Cumulative Emission Reductions by 2050<\/span><\/p>\n (Low-Cost Scenario)<\/span><\/p>\n Projected 2030 Levelized Cost Electricity for New Capacity Additions<\/span><\/p>\n One reason 45Q is so effective: it can incentivize emissions reductions in both the power sector and the industrial sector, such as heavy industrial processes to reduce emissions such as cement, chemicals and the transportation fuel sectors \u2013 unlike renewable energy tax credits. Expected deployment could catalyze emission reductions totalling more than one-tenth of all U.S. industrial sector emissions.<\/p>\n\n\n\n Support for carbon capture is diverse. Many states have recently implemented enabling carbon capture policies \u2014 from Wyoming to California. A recent National Petroleum Council carbon capture report<\/a> \u2013 led by companies like Shell, Valero, and Southern Company \u2013 highlighted 45Q extension as one of its top policy recommendations.<\/p>\n\n\n\n Carbon capture technology is on the cusp of a step change. And as you can see from the Rhodium analyses \u2014 building on 45Q can help make that goal a reality.<\/p>\n\n\n\n Check out a whiteboard video we made last week describing the future benefits 45Q can provide …<\/p>\n\n\n\n\n
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