POWER December 2020 - 33

CARBON CAPTURE
for EOR use than those that must transport
it hundreds of miles or more for sale.
Geological Sequestration. Another alternative
is geological sequestration, which
entails injecting CO2
into vast underground
geological formations for long-term storage.
By disposing of CO2
as a waste product,
sequestration necessitates costly
infrastructure and permitting, along with
overcoming likely public opposition. This
option is also highly location dependent,
requiring a plant to be near the target geological
formation to remain cost-feasible.
Oil reservoirs and saline aquifers offer
opportunities for storing CO2
underground,
but geologic sequestration of
CO2
in saline aquifers involves addressing
technical and permitting issues, and there
is currently little industry experience in
doing so. Conversely, injection of CO2
for
use in EOR is more readily understood
and a long-standing practice for which sequestered
CO2
can be employed.
Capitalizing on Opportunities Ahead
Overall, the economics of CCUS implementation
rely heavily on the balance
of many factors. Some of these are the
amount of CO2
captured, cost to capture,
impact to host plant efficiency and
output, cost-benefit of and ability to leverage
tax credits, capital cost, and operations
and maintenance costs.
Looking ahead, state regulators would
be well-advised to consider incorporating
carbon capture strategies in their states'
asset mix and comprehensive renewable
energy plans. The prominence of CCUS
technology at coal- and gas-fired power
plants will be a function of the regulatory
environment, and the future promises to
bring new challenges to utilities-possibly
in the form of more stringent environmental
regulations and carbon taxes.
For utilities and power producers with
CO2
off-take potential, CCUS offers an
economically viable way to balance aggressive
environmental mandates with
reliable power generation. One thing is
certain: The 45Q tax credit will not last
forever. It is a temporary revenue incentive
designed to facilitate investment in
carbon capture technologies. Finding the
sweet spot between cost and meeting
business plans, and efficiency goals will
make the implementation of CCUS technology
more viable and effective.
A Mutually Beneficial Path Forward
Carbon capture has substantial utility,
regulatory, and academic support, and
will likely continue to be incentivized
through federal legislation, DOE support,
and state mandates. Utilities with CCUS
potential can leverage these technologies
to create a new revenue stream that
enhances the economic performance of
existing generation assets, while helping
to meet clean energy mandates. Power
plants retrofitted with these systems
also continue supporting jobs in their
communities and extend their operating
lives by a decade or more.
In states with regulatory support for
carbon capture, utilization, and sequestration,
the clock is ticking. If the necessary
permitting at nearby oil fields is not already
in place-and decisions on CO2
sequestration
versus sale are not made-swift action
will be needed to meet the Jan. 1, 2024,
construction start date needed to secure
tax credit eligibility. ■
-Stephanie Villarreal, PE is a senior
development engineer at Burns & McDonnell.
With a background in mechanical
engineering, she specializes in technical
development and economic business
analysis for the advancement of innovative
carbon capture and decarbonization
technologies in the energy industry.
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