Geologic Storage Utility

Federal policy must create a new entity to manage and accelerate the development of storing carbon deep underground. Geologic sequestration utilities do not yet exist, but would function very much like the water and electric utilities that have operated for decades.

 

A geologic sequestration utility is a specialized, regulated utility that has one function:  commercialize injection (and in some cases, transport) of carbon dioxide into saline aquifers.   It would manage and assume liability for CO2 disposal from power plants, manufacturers, and other stationary sources of CO2.

 

For these services, the utility would recover its cost in rates, along with a reasonable rate of return.  Its purpose is to create certainty and reliability in developing geologic sequestration at a system-wide scale.  It is not intended to compete with commercial operations, such as EOR, although it could conceivably help facilitate EOR through joint ventures.  The regulated monopoly’s service territory would be comprised of a formation or set of formations.

 

The concept is detailed in this white paper. Read (.pdf) >>