popular articles

CO2 capture in the United States adjusts its strategy under the Trump administration

Amid political uncertainty, CO2 capture players in the United States are shifting their messaging to safeguard the tax incentives crucial to their survival. The sector is now focusing on economic and strategic arguments to persuade the government.

Please share:

The carbon capture, utilisation, and storage (CCUS) industry in the United States operates within a shifting regulatory landscape. According to the Congressional Budget Office (CBO), only 15 sites were operational by the end of 2023, handling less than 0.5% of national emissions. However, 275 projects have been announced, reflecting the industry’s ambitions, which remain largely dependent on tax incentives introduced under former President Joe Biden’s administration.

A fragile economic model

The flagship provision of the 2022 Inflation Reduction Act (IRA) offers a tax credit of up to $85 per tonne of captured CO2, a measure deemed essential by industry players. “Without these tax credits, virtually all ongoing projects would be doomed,” says Jessie Stolark, director of the Carbon Capture Coalition. However, the absence of a federal carbon credit market and a national compensation obligation limits the economic viability of captured CO2. Only California and a coalition of 11 Northeastern states impose such a requirement.

A strategic repositioning

With Donald Trump’s return to the presidency, the CCUS sector is adjusting its message. The administration has already rolled back several emission reduction commitments made by the previous government, casting doubt on the longevity of tax incentives. In response, the Carbon Capture Coalition now emphasises “economic competitiveness and American leadership,” according to Stolark.

Advocates highlight the United States’ key advantages: vast tracts of land suitable for CO2 storage and an extensive pipeline network spanning more than 8,000 kilometres, originally built for enhanced oil recovery (EOR), which optimises hydrocarbon extraction.

Support from the oil sector

At the CERAWeek conference in Houston, Vicki Hollub, CEO of Occidental Petroleum, underscored the value of CO2 in improving oil field productivity. According to her, this technology allows for the recovery of 75% of a field’s oil, compared to just 50% previously. Hollub is pushing for the continuation of tax incentives while also advocating for a policy adjustment: currently, CO2 reuse projects receive lower tax credits than storage initiatives.

This argument could resonate with the Trump administration, which seeks to boost oil production to lower energy costs. “A growing number of lawmakers are backing carbon capture because they realise we truly need carbon dioxide to extract more oil in the United States,” Hollub states.

Tensions with environmental organisations

While this strategic shift aims to secure government backing, it has drawn criticism. Several environmental organisations, including Environmental Health Network and Bold Alliance, condemn the use of CO2 for oil recovery, arguing that it undermines CCUS’s effectiveness in reducing emissions.

In a report published in August, these groups referred to CO2-based oil extraction as a “false promise,” questioning the true climate impact of carbon capture. This opposition could fuel debates over the Trump administration’s energy policy and the long-term economic viability of the sector.

Register free of charge for uninterrupted access.

Publicite

Recently published in

The partnership aims to develop a full logistics chain for CO2 capture, transport, liquefaction and storage, focused on Calcinor’s industrial operations.
In response to increasingly stringent environmental regulations, the world's leading oil companies are significantly boosting their investments in carbon capture and storage (CCS) technologies, reshaping their industrial and financial strategies.
In response to increasingly stringent environmental regulations, the world's leading oil companies are significantly boosting their investments in carbon capture and storage (CCS) technologies, reshaping their industrial and financial strategies.
HYCO1 and Malaysia LNG Sdn. Bhd. have signed a memorandum of understanding for a carbon dioxide (CO2) capture and utilization project in Bintulu, Malaysia, aiming to transform 1 million tons of CO2 per year into low-emission syngas.
HYCO1 and Malaysia LNG Sdn. Bhd. have signed a memorandum of understanding for a carbon dioxide (CO2) capture and utilization project in Bintulu, Malaysia, aiming to transform 1 million tons of CO2 per year into low-emission syngas.
Carbon Capture, Utilization, and Storage (CCU) technologies are gaining traction in hard-to-decarbonize industrial sectors, offering innovative and economically viable solutions. The Oxford Institute for Energy Studies report explores these new pathways.
Carbon Capture, Utilization, and Storage (CCU) technologies are gaining traction in hard-to-decarbonize industrial sectors, offering innovative and economically viable solutions. The Oxford Institute for Energy Studies report explores these new pathways.
The outcome of Australia's elections could redefine national carbon market regulations, potentially triggering significant shifts in emissions reduction policies, directly impacting local carbon credit prices (ACCU).
According to the latest data from S&P Global Commodity Insights, voluntary carbon markets experienced a significant contraction, with renewable credit retirements dropping by 34% in March and issuances decreasing by half.
According to the latest data from S&P Global Commodity Insights, voluntary carbon markets experienced a significant contraction, with renewable credit retirements dropping by 34% in March and issuances decreasing by half.
Telecom operators and data centres recorded a rise in greenhouse gas emissions in 2023, diverging from the national decline reported during the same year.
Telecom operators and data centres recorded a rise in greenhouse gas emissions in 2023, diverging from the national decline reported during the same year.
Fidelis Infrastructure has entered a 15-year agreement with Microsoft to supply biomass-based carbon capture solutions in Baton Rouge, marking the world’s largest permanent carbon removal transaction to date.
Fidelis Infrastructure has entered a 15-year agreement with Microsoft to supply biomass-based carbon capture solutions in Baton Rouge, marking the world’s largest permanent carbon removal transaction to date.
The Danish government has granted Norne Thorning Storage an exploration licence to assess the Thorning geological structure for potential underground carbon dioxide storage by 2030.
Gevo and Future Energy Global have signed a multi-year agreement covering carbon credits from sustainable aviation fuels, supporting the construction of a new production facility in the United States.
Gevo and Future Energy Global have signed a multi-year agreement covering carbon credits from sustainable aviation fuels, supporting the construction of a new production facility in the United States.
In Brasilia, China and India urged BRICS members to resist carbon taxes and trade measures imposed without international consensus, calling for stronger existing multilateral frameworks.
In Brasilia, China and India urged BRICS members to resist carbon taxes and trade measures imposed without international consensus, calling for stronger existing multilateral frameworks.
Subsea7 has been awarded a major contract by Equinor for Phase 2 of the Northern Lights project, involving the installation of a CO2 pipeline offshore Norway, with operations scheduled for 2026 and 2027.
Subsea7 has been awarded a major contract by Equinor for Phase 2 of the Northern Lights project, involving the installation of a CO2 pipeline offshore Norway, with operations scheduled for 2026 and 2027.
Driven by investment in low-carbon technologies, the global decarbonisation market is expected to reach $4.7tn by 2033, according to Allied Market Research, with an average annual growth rate of 8.1%.
Norwegian joint venture Northern Lights, backed by Equinor, Shell and TotalEnergies, will invest NOK7.5bn to expand its CO2 storage infrastructure following a new industrial contract signed in Sweden.
Norwegian joint venture Northern Lights, backed by Equinor, Shell and TotalEnergies, will invest NOK7.5bn to expand its CO2 storage infrastructure following a new industrial contract signed in Sweden.
Japanese conglomerate Mitsubishi Corporation has entered into a strategic partnership with Alt Carbon to scale up carbon dioxide removal across South Asia through an emerging mineral-based technology.
Japanese conglomerate Mitsubishi Corporation has entered into a strategic partnership with Alt Carbon to scale up carbon dioxide removal across South Asia through an emerging mineral-based technology.
British and European carbon markets extended gains, boosted by geopolitical tensions and prospects of aligning emissions trading systems.
British and European carbon markets extended gains, boosted by geopolitical tensions and prospects of aligning emissions trading systems.
Carbon Mapper and Planet Labs PBC will provide satellite data to California in support of a public programme targeting emission reductions in high-intensity sectors.
A coalition of 30 companies and public organizations has launched an initiative to establish a standardized protocol for carbon credit data, aiming to improve transparency and accelerate the growth of carbon markets.
A coalition of 30 companies and public organizations has launched an initiative to establish a standardized protocol for carbon credit data, aiming to improve transparency and accelerate the growth of carbon markets.
8 Rivers Capital has entrusted Wood with the preliminary engineering and design phase of a carbon capture project in Wyoming. This project, carried out with PacifiCorp, aims to modernize an existing power plant by integrating a technology utilizing supercritical CO₂.
8 Rivers Capital has entrusted Wood with the preliminary engineering and design phase of a carbon capture project in Wyoming. This project, carried out with PacifiCorp, aims to modernize an existing power plant by integrating a technology utilizing supercritical CO₂.
Recent movements in Europe’s carbon market have generated keen interest among investors. The price has experienced a notable decline, fueling questions about the forces that could trigger a potential rebound. -
Recent movements in Europe’s carbon market have generated keen interest among investors. The price has experienced a notable decline, fueling questions about the forces that could trigger a potential rebound. -
Baker Hughes and Frontier Infrastructure have announced a strategic partnership to accelerate the development of carbon storage and energy production projects in the United States, aimed at supporting the growing needs of data centres and industrial emitters.
Perenco and its partners launch the first UK test for CO₂ injection into a depleted gas reservoir in the North Sea. This experimental phase aims to provide crucial data for the long-term geological storage of CO₂. ##
Perenco and its partners launch the first UK test for CO₂ injection into a depleted gas reservoir in the North Sea. This experimental phase aims to provide crucial data for the long-term geological storage of CO₂. ##
Captura, in collaboration with Equinor, has commissioned a new pilot facility in Kona, Hawaii, capable of capturing 1,000 tons of CO₂ per year. This milestone marks a key step toward the large-scale deployment of Direct Ocean Capture (DOC) technology.
Captura, in collaboration with Equinor, has commissioned a new pilot facility in Kona, Hawaii, capable of capturing 1,000 tons of CO₂ per year. This milestone marks a key step toward the large-scale deployment of Direct Ocean Capture (DOC) technology.
Lydian takes a strategic step forward by demonstrating a technology that uses captured CO2 and renewable electricity to produce sustainable aviation fuel, addressing both civil market demands and critical military needs.
Lydian takes a strategic step forward by demonstrating a technology that uses captured CO2 and renewable electricity to produce sustainable aviation fuel, addressing both civil market demands and critical military needs.

Advertising