Carbon Capture Gold Rush12 Jan 2023 21:29
Found a good article on Bloomberg released yesterdayâŚhas a pay wall so I took a snippet out⌠Heading: There Are Fortunes to Be Made in the Carbon Capture Gold Rush
https://www.bloomberg.com/news/articles/2023-01-11/there-are-fortunes-to-be-made-in-the-carbon-capture-gold-rush?leadSource=uverify%20wall
âEach of the major oil companies, including Exxon Mobil, Shell and Occidental Petroleum, has its own plans for moving forward with carbon capture. Well before the IRA, Occidental pledged to build what could be the worldâs largest single direct-air carbon capture facility, in Texas, with completion scheduled for late 2024.
The Texas project could claim as much as $90 million a year once itâs operational, and double that if it scales up to 1 million metric tons annually and buries it all underground. Occidental envisions building 70 such plants by 2035, each with the capacity to store 1 million tons a year. Even if the company were to build half that number, the potential tax credits could be worth more than $4 billion a year. A carbon capture hub with a capacity of 100 million tons a year, proposed by Exxon Mobil Corp., could also see annual credits running into the billions, though the oil giant has said it will likely need additional fiscal incentives to get it off the ground.
Still, the long-term profit potential is clear. Exxon and Chevron Corp. should both achieve a 15% average return on the capital they invest in low-carbon initiatives, which include carbon capture and hydrogen, spurring $4.1 billion and $2.3 billion in earnings by 2030, respectively, according to Morgan Stanley.â
âSince the 45Q(CCS tax credit) is an uncapped credit, itâs impossible to say how much money will be tappedâ
Big bucks to be made with carbon capture and storage and thereâs little old COPL with a field that can store TONS of it :)
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