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Press Releases

Statement of Kurt Waltzer, Clean Air Task Force, on Carbon Storage Tax Credits

10/06/08

"The Clean Air Task Force applauds the passage by Congress of a tax incentive package to promote carbon capture and storage (CCS).

 

CCS is a method of capturing global warming CO2 emissions from coal plants and other industrial sources. CCS prevents the release of CO2 to the atmosphere by storing it in deep geologic formations like depleted oil fields or deep saline formations. The tax incentives were included in the credit market bail out bill.

 

These incentives are an important first step in promoting carbon capture and storage as a tool to fight global warming.

 

The incentives are designed to drive early commercial CCS projects forward. Possible projects that could benefit include coal gasification and power production CCS projects in the Midwest as well as a pipeline from the Midwest to the Gulf Coast for enhanced oil recovery.

 

The credit market bailout package passed by Congress included $2.5 billion in incentives for developing CCS. $1.4 billion provides an investment tax credit for CCS power projects that capture and store 65 percent of their carbon dioxide and gasification projects that capture 75 percent of their carbon dioxide.

 

An additional $1.1 billion in tax incentives will be available in the form of a $20 per ton tax credit for geologic carbon storage (GCS) and a $10 per ton tax credit for enhanced oil recovery (EOR), providing the CO2 comes from an industrial or power project that captures a minimum of half a million tons of CO2 per year."

 

Kurt Waltzer is the Carbon Storage Development Coordinator, Coal Transition Project, Clean Air Task Force.

 

 

About the Clean Air Task Force

The Clean Air Task Force is a national environmental organization that is dedicated to restoring clean air through scientific research, public education, and legal advocacy. The Clean Air Task Force is comprised of twenty professionals with backgrounds in science, engineering, law, economics and public outreach headquartered in Boston, but located throughout the United States. CATF is recognized as one of the nation's leading environmental organizations addressing air quality and atmospheric protection issues, and its work is widely respected in government and industry. For more information about the Clean Air Task Force, see http://www.catf.us/.