US CCS industry ‘needs financial incentives’

Financial incentives are needed for the US to deploy carbon capture and storage technologies (CCS). That’s according to a report by National Coal Council (NCC) for US Secretary of Energy Ernest Moniz […]

Register now!

By admin

Financial incentives are needed for the US to deploy carbon capture and storage technologies (CCS).

That’s according to a report by National Coal Council (NCC) for US Secretary of Energy Ernest Moniz who requested it in advance of the upcoming COP21 conference.

The NCC advises the US Energy Secretary on matters related to coal policy and technology.

The report states incentives must be “substantially increased and broadened” and “designed recognising, as with wind and solar in the 1990s, that CCS is an immature technology with upfront risks and high capital costs”.

It also recommends regulatory improvements, suggesting “a first-of-its-kind blueprint is needed to remove barriers to construction and development of CCS projects”.

The NCC believes the US should “act as a catalyst” and set a goal of bringing 5GW to 10GW of commercial-scale projects online by 2025 and begin development now.

It also suggests the US Department of Energy should assure policymakers and other stakeholders that fossil fuels will be used in the coming decades to a greater extent than today and there is a resulting need for CCS.

NCC Report Chair Glenn Kellow said: “We believe the recommendations in this report will bring much needed advances to commercialise this vital technology and will help guide decisions on global facilities which will operate for years to come.

“This report addresses the path to near-zero emissions, which is recognised by global leaders as essential to carbon goals.”

Drax recently announced it will withdraw as a partner of a £1 billion CCS project in the UK when it is completed.