US CCS poised for expansion

Important updates to the legislation that covers 45Q tax credits mean the industry can now implement plans held up by financing uncertainty

The US carbon capture and storage (CCS) industry is finally set to thrive following the recent additional changes to the 45Q tax credit in the omnibus spending and Covid-19 relief bill passed in December, with further regulatory details provided last week, industry analysts predict. The most impactful changes are an extension of the construction start deadline for CCS projects by two years to 2025, and an extra $2bn of federal funding to help kickstart six new projects. The Bipartisan Budget Act of 2018, passed in February of that year, laid the foundation for the recent changes. Itself an update of previous legislation, the 2018 act included a revamped 45Q tax credit that significantly boo