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
7 December 2023
An ambitious pipeline of CCS projects through 2030 shows optimism for the sector
6 December 2023
Talks focus on two key provisions to Paris Agreement rules allowing international trade in emission reductions
4 December 2023
Oil and gas companies look to defy cynics and play pivotal role in decarbonisation as the UAE hosts COP28
4 December 2023
CCUS is under the spotlight at COP28 in Dubai as policymakers increasingly look to tap its potential to tackle hard-to-abate emissions
