CATF’s Decarbonized Fossil Energy work aims to enable global energy system decarbonization by 2070. CATF works towards this goal by developing and advocating for policies aimed at making carbon capture technologies cost competitive with using dirty fossil fuels for power generation and for use in the industrial sector, globally.
California’s CO2 Reduction Program Opens Doors to CCS
In September, California Air Resources Board voted on including CO2 reductions from Carbon Capture and Sequestration technologies under its Low Carbon Fuel Standard Program by incorporating a CCS Protocol into the regulation. Credits under the LCFS program stacked with the 45Q tax credit for CCS make CO2 reductions worth between approximately $135 and $150 perDecarbonized Fossil Energy
Welcome to the New World of 45Q
The adoption by Congress of the FUTURE Act in February was a major step toward ensuring that carbon capture, utilization and storage (CCUS) can be an important tool in the kit for addressing global warming.Decarbonized Fossil Energy
Incentives for CO2 Avoided: Comparison of Renewables Production Tax Credit and Proposed 45Q Legislation
The proposed extension and expansion of Section 45Q tax credits in the 115h Congress is comparable to the dollar per tonne value of avoided carbon from the Section 45 production tax credits (PTC).Decarbonized Fossil Energy
Two Carbon Capture Projects: A Deeper Look
Two carbon capture projects made headlines in 2017. The Petra Nova project at NRG’s Texas Parish coal-fired power plant began capturing CO2 in January. Petra Nova was built on time and on budget, and is on is on track to capture 1.6 million tons of CO2 each year. More recently, Southern Company announced that the Kemper plant in Mississippi would no longer burn coal, and would cease capturing the coal plant’s CO2 emissions. Now Kemper will burn natural gas without CO2 controls.
The amount of carbon dioxide released globally from energy use is staggering at 36 billion tonnes. For power plants that will continue to use coal and natural gas, carbon capture can mitigate CO2 emissions. Global industrial sources such as chemical, cement, iron and steel production account for approximately a fifth of all CO2 emissions, which cannot be mitigated through any other technology other than carbon capture and sequestration. Carbon Capture can keep millions of tonnes of CO2 emitted from these sources out of the atmosphere, making it a critical tool in the global climate solution toolbox. The individual technologies that comprise carbon capture have been commercially available for many decades, but are only now being harnessed to address global warming.
CATF takes into account the role for CCS technology globally as modeled by the IEA and IPCC and works backwards to develop, evaluate, and implement a roadmap of policies that will allow the technology to scale, deploy globally, and deliver necessary CO2 reductions to meet climate goals. CATF works to ensure that by 2030 carbon capture technologies have achieved cost parity with unabated fossil and policy pathways exist to help deploy carbon capture globally at a meaningful scale.
Decarbonized Fossil Energy
Scope of Work
Policy Development & Advocacy: CATF advocates for policies, regulations, and incentives that would drive carbon capture deployment in both the power and industrial sectors, and expand the existing network CO2 pipelines and storage sites.
Commercial Assessment & Support: CATF evaluates emerging technologies, promotes business partnerships that develop new projects, and supports plans to advance carbon capture hubs composed of pipeline and storage sites. CATF leads information sharing and business-to-business partnership building through workshops and site tours.
Carbon Capture Economics & Analysis: CATF conducts extensive research and modeling to understand the factors that impact CCS deployment including costs, market ecosystem barriers, and business models.
Education & Outreach: CATF seeks to educate policy makers and stakeholders on the long-term carbon reduction benefits of carbon capture technology and to enable critical path policy choices that will enable the technology to play its part in achieving significant carbon reductions from the unabated use of fossil fuels. CATF has played a catalytic role in forming broad coalitions of support for carbon capture.
- The carbon capture incentive that U.S. Congress adopted in February 2018, 45Q, is a milestone victory in advancing carbon capture technology. CATF had been working on this outcome for 10 years. CATF helped create the National Enhanced Oil Recovery Initiative that is now the Carbon Capture Coalition, which includes both conservative and liberal stakeholders and advocates for carbon capture technology.
- CATF helped secure the adoption of federal reporting and accounting rules by EPA (subpart RR) for geologic storage that helps enable targeted incentives such as 45Q.
- CATF helped secure the adoption of federal standards under EPA’s Carbon Pollution Rule that requires new coal power plants to meet emission limits that are consistent with the use of carbon capture and storage technology.
- CATF led a modeling study with Charles River Associates showing the impact of 45Q and other proposed incentives on the deployment of carbon capture in the U.S. power sector. CATF’s analysis based on this study has been instrumental in communicating the impacts of potential incentives to policymakers and other stakeholders.
- CATF helped secure the DOE grants program that resulted in three active power and industrial CCS projects in North America.
- In China, CATF brought carbon capture and CO2 EOR technology know-how and learning to China’s four largest oil companies and their regional subsidiaries. Visited numerous regional Chinese carbon capture-related research and pilot project sites typically out of view of Westerners and have compiled project data and strategies to help those projects mature to commercial stage. Established an offshore carbon storage partnership between the Chinese Academy of Sciences in Guangdong and the University of Texas at Austin Gulf Coast Carbon Center, as well as a number of business-to-business partnerships between Chinese and US companies. Conducted a half dozen field study workshops for Chinese companies in Texas to learn about carbon dioxide management and pipeline design.
What We're Working On
US Federal Incentives
California Climate Programs
China Information Sharing and Partnership Building
Meet our staff members working in decarbonized fossil energy.
Research and Technical Director
Energy Policy Associate
S. Ming Sung
Senior Advisor, Asia Pacific
Technology and Markets Director
Senior Counsel and Legal Director