Long Awaited Carbon Capture Tax Credit Guidance Released
Treasury Secretary Stephen Mnuchin released the Internal Revenue Service (IRS) pre-regulation guidance on the carbon capture tax credits (known as “45Q”). The guidelines are the first of three that provide specific project eligibility criteria. The additional clarity will help prospective developers and investors evaluate projects, and accelerate technologies that capture, store and utilize carbon emissions from existing and new coal and natural gas plants, as well as industrial facilities that produce a range of U.S. products.
Congress first established the 45Q incentive as part of the Energy Improvement and Extension Act of 2008. Over the next decade, it became clear that the incentive was not accomplishing what policymakers envisioned, leading to a successful bipartisan effort to make the credit more attractive for private investment in 2018. The update and this guidance will help the ever-growing number of carbon capture projects underway at power, industrial and carbon removal facilities.
Leading CEOs Publish Report for Congress on Energy Innovation Agenda
The American Energy Innovation Council, an organization comprised of 12 executives in the energy, technology, and aerospace industries, released a report highlighting the scalable energy technology needed to reach net-zero greenhouse gas emissions by 2050. The report says this technology does not currently exist and the United States must partner beyond basic R&D to support the scale-up and demonstration phases.
“Any serious climate plan must include support for the full innovation lifecycle—research and development along with demonstration and deployment,” said Jay Faison, founder of ClearPath and AEIC member. “Innovation doesn’t end at the lab’s edge, and we need programs to help scale-up, de-risk and deploy the clean technologies of the future, including advanced nuclear, carbon capture and storage.”
Oklo Selected by INL for Access to Used Nuclear Fuel
to Power Their First Reactor
This week, the Idaho National Lab (INL) selected Oklo Inc. to receive access to materials from used nuclear fuel to support demonstration of the first Oklo Aurora plant. This award also shows how advanced reactors could convert used nuclear fuel into clean energy.
Oklo Inc. is working to develop and demonstrate a small advanced fission technology called Oklo Aurora to be used in remote or off-grid locations to generate power. In December, they received a Site Use Permit from the U.S. Department of Energy to build their Aurora plant at INL and are expected to be the first advanced reactor license application. Read more
Jay Joins Rep. Dan Crenshaw Podcast
ClearPath founder Jay Faison joined Rep. Dan Crenshaw recently on his podcast “Hold These Truths with Dan Crenshaw.” Listen
They cover a lot of ground including discussion of clean energy investments, hydropower, Navy Seal training, the importance of maintaining a robust nuclear power fleet, India’s electrification relying on coal, and plenty more.
Rep. Crenshaw closed the podcast saying, “ClearPath has not only been an advocate, but a big help to Members who want to bring forth solutions and legislation that are real — not based on fantasy or emotion — real solutions where the end goal is reducing emissions.”
Columbia University: “New Republican Take on Climate Change”
Speaking of podcasts, Rep. Garret Graves (R-LA) the ranking member of the Select Committee on Climate Change, joined Columbia University’s podcast, the Columbia Energy Exchange, hosted by Bill Loveless. Listen here
Among other things, Graves talks about the carbon capture bills he, Republican Leader Kevin McCarthy, and others rolled out last week as the first phase of the House Republicans climate change plan. The bills promote more research on carbon-capture technologies and uses for carbon, and make permanent a tax break for companies that use the technology. It’s a mix of old and new policy ideas, some of which already enjoy bipartisan support.
Rich Looking At Innovative Ways to Cost-Share
Advanced Energy Demonstrations
Several states are also looking at interesting ways to cost-share demonstrations for advanced energy projects. In Colorado, there is legislation that would allow regulated utilities to seek limited rate recovery for innovation demonstrations of advanced clean energy technologies – including long-duration storage systems, advanced nuclear reactors, enhanced geothermal, and carbon capture.
ClearPath executive director Rich Powell was in Colorado this week meeting with legislators and utilities to see if there are opportunities for state-federal partnerships by allowing the public utility commission to prioritize proposals from regulated utility entities that have also received a Federal cost-share.
RICH’S TAKE
“These kinds of targeted, state-appropriate, cost-shared proposals that spread the burden and risk for innovative technology demonstrations across Federal taxpayers and state ratepayers make a lot of sense. As the suite of clean energy bills that are moving through Congress, we could also be looking at the allocation of Federal dollars being paired with offerings from states and utility partners bringing significant cost shares to the table. Ensuring states have skin in the game will prioritize local problem-solving on siting, permitting, and ensuring strong state support and social license for the projects.”
Perovskite Solar
Researchers at the National Renewable Energy Laboratory (NREL) and Northern Illinois University developed a new technique to sequester lead from perovskite solar cells – a thin-filmed, printable solar cell – potentially improving their health concerns. Lead is used to improve perovskite efficiency, which is the highest in the world. Perovskites have the potential to dramatically improve solar power’s efficiency using readily available materials at a significantly reduced cost. This technology has the potential to be mass printed and used almost anywhere if researchers can address safety and health concerns. Read more.
Chevron Makes Big Carbon Capture Investment
Carbon Clean Solutions Limited (CCSL), a company leading on carbon capture technology in the industrial sector, is receiving an investment of $16 million from three global investors, headlined by Chevron Technology Ventures. CCSL announced they will use the investment on global projects to lower emissions from the industrial sector and aim to reduce the cost of carbon capture from industrial emissions by more than half. Read more.
IN CASE YOU MISSED IT
USA Today:
Climate solutions include free-market innovation, not taxation:
Sen. John Barrasso
Excerpts from Sen. John Barrasso’s op-ed in USA Today on clean energy innovation.
“Free-market innovation — not government regulation or taxation — is the best way to reduce carbon dioxide emissions.
“Those of us interested in real solutions are looking to free-market innovation to reduce emissions.”
“Clean and constant nuclear power emits zero carbon dioxide. We should expand America’s nuclear energy production and continue to support innovators building advanced reactors.”
“Just as critical is the development of technologies to capture carbon and use it to produce commercial products such as building materials.”
Post Register:
Nuclear is the solution – and SMRs are the future of nuclear
By Pete Lyons
Pete Lyons, a former commissioner of the Nuclear Regulatory Commission and former assistant secretary for Nuclear Energy at the U.S. Department of Energy writes:
“Global energy infrastructure faces great challenges. As we work to reduce carbon emissions and respond to demands for new clean energy sources, research from the International Energy Agency shows nuclear power needs to be a significant contributor to our clean energy future.”
February 26: The due date for responses to the U.S. Department of Energy (DOE) Request for Information/Notice of Inquiry (RFI/NOI) for the new Advanced Reactor Demonstration Program. Click here for the RFI/NOI.
March 11: The Clean Energy Business Network will be hosting dozens of businesses who are developing clean energy technologies on Capitol Hill. More details coming soon.
March 26: The American Energy Innovation Council will be hosting a briefing on Capitol Hill with U.S. Department of Energy Secretary Dan Brouillette to discuss recommendations for accelerating clean energy innovation. More details coming soon.
Oklo Selected by INL for Access to Used Nuclear Fuel
Perovskite Solar 
Chevron Makes Big Carbon Capture Investment
