Gulf Coast geared up for establishing a carbon storage facility
The Gulf Coast region, home to energy giants like Occidental Petroleum, Chevron, and Denbury Resources, is seeing a surge in carbon storage development. This is thanks to the combined efforts of government agencies, research institutions, and the support of federal incentives such as the 45Q tax credit program and state-level grants or subsidies.
Texas, the highest emitter of CO2 among U.S. states, and its neighbour Louisiana, the second-highest, offer unique opportunities for carbon capture and storage (CCS) due to their high concentration of industry and unusual offshore geology. The existing CO2 infrastructure, which has been used for decades in enhanced oil recovery, can be leveraged and expanded to boost carbon storage outside of oil recovery.
The Gulf Coast Carbon Center, a research institution, has published a study in Greenhouse Gases: Science and Technology that provides an overview of policy incentives for CCS. The study, led by principal investigator Susan Hovorka, explores how CCS can help fight climate change by lowering industrial emissions now while renewable energy sources are being developed.
The study was funded by the Department of Energy and associated with the Bureau of Economic Geology, a research unit of the UT Jackson School of Geosciences. The research scientists for the study include Alex Bump, and Ramón H. Treviño served as the program manager.
The Texas General Land Office has announced it is accepting lease proposals for CO2 storage sites in state land offshore of Jefferson County. This move is significant as any royalties or revenues related to storage will benefit the Texas Permanent School Fund, as oil and gas activity does.
Moreover, the falling oil and gas prices and the increasing 45Q federal tax credit are making carbon storage for its own sake more attractive. Texas has recently brought carbon storage under a regulatory framework similar to oil and gas, with HB 1284 granting the Texas Railroad Commission regulatory authority over CO2 injection wells.
The subsurface geology offshore of the Gulf Coast is also suitable for permanently storing CO2. CCS is a technology that keeps CO2 out of the atmosphere by capturing emissions and storing them deep underground. This development could significantly reduce industrial emissions, contributing to the fight against climate change.
For more details, you can refer to the study with the DOI 10.1002/ghg.2082. The Gulf Coast region seems poised to become a major player in the carbon storage economy, offering a promising future for cleaner industrial practices.
