The Biden government is strategically focusing on carbon capture and storage (CCS) networks as a potential solution to accelerate the country’s decarbonisation process. This approach underscores the administration’s commitment to employing effective tools in decarbonising.
Several steps taken by the Biden administration hint that the authorities are serious about the CCS network. One initiative is the new rules announced by the Environmental Protection Agency (EPA) involving power plants.
The EPA declared that newly constructed natural gas power plants must reduce emissions by 90% by installing carbon capture infrastructure by 2032 or draw the shutters by 2039.
The latest round of funding from the Department of Energy (DOE) is another example of the US government’s determination to subside the marketplace.
The US Department of Energy (DOE), the Internal Revenue Service (IRS), and the US Department of Treasury released additional guidelines the previous month regarding the $6 billion available under the Qualifying Advanced Energy Project Tax Credit (48C) program.
Over 100 projects in 35 states received $4 billion in credits. The credits were distributed to increase domestic clean energy manufacturing and reduce industry greenhouse gas emissions. Among the projects selected, around 13% were segregated for ‘industrial decarbonisation’, and the tax credits among these projects totalled up to $500 million in tax credits.
The businesses selected under the credit program comprise small, medium and large businesses and state and local governments. The selected members must meet the prevailing wage and apprenticeship requirements to receive a 30% investment tax credit.
Apart from the above-mentioned requirement, the members must meet other criteria to qualify for the 48C tax credit. The projects seeking opportunities under the tax credit program must boost the growth of clean energy manufacturing, recycling, and critical materials refining or decrease greenhouse gas emissions at industrial facilities.
An essential qualification for any industrial facility or project is that it must decrease emissions by a minimum of 20 per cent through CCS technology or other emission-remitting techniques.
