CCUS projects bring financial risks
US CCUS sector weighs risks and rewards
Many projects look attractive on paper but come with multiple risks for financiers and developers, say speakers at Washington forum
Recent enhancements to the 45Q tax credit regime have transformed the economics of CCUS in the US, but the reality on the ground remains one of multiple risks and complex business models as project financiers and industrial emitters attempt to deploy the technology at scale. The Inflation Reduction Act raises the potential level of 45Q tax credits available to CCUS projects to up to $85/t of CO₂ from up to $50/t previously. It also extends the construction start date deadline for qualifying projects from January 2026 to January 2033 and allows tax credits to be paid directly in cash. “The Gulf Coast in particular, where you have the opportunity to build large-scale hubs very close to e
Also in this section
19 December 2024
The utility-scale battery energy storage system market is evolving rapidly, with diverse offtake models emerging to offer bespoke, flexible contracting solutions
13 December 2024
Prices in world’s largest compliance market have risen this year but remain below those seen in the EU
11 December 2024
Policymakers need to step up with a long-term, global strategy if the energy transition is ever to be a success
11 December 2024
CCUS and other carbon management technologies are gaining traction around the world, but heightened policy risk and other pressures will make 2025 a challenging year in some regions
