The Global CCS Institute has welcomed California’s Air Resources Board (CARB) decision to include a protocol for carbon capture and storage (CCS) in its Low Carbon Fuel Standard (LCFS), a rule which became effective on 1st January (2019).
The protocol allows transportation fuels whose lifecycle emissions have been reduced through CCS to become eligible for credits under the LCFS. Currently, the credits are trading at roughly $180 per ton and can be combined with the federal tax credit for CCS projects.
Guloren Turan, General Manager of Advocacy and Communications at the Global CCS Institute, said, “The inclusion of the CCS protocol in the LCFS signals that California – arguably one of the most active states when it comes to combatting climate change – recognises that CCS has a role in its energy transition to deliver emissions reductions.”
Also known as 45Q, the federal tax credit provides $50/t for CO2 stored geologically and $35/t for CO2 stored permanently via enhanced oil recovery.
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