ABO Scores Historic Victory for Carbon Utilization
In a historic victory for algae and other microbial technologies, Congress late last night approved a two-year budget agreement that establishes a $35 per ton tax incentive for carbon captured and recycled from power plants or industrial facilities using algae or other biologically-based carbon capture and use (CCU) systems.
The bill adds algae and a number of other CCU approaches to the existing section 45Q Carbon Capture and Storage (CCS) tax credit, which was previously available only to geologic storage and enhanced oil recovery (EOR) projects. It also substantially increases the credit rate from the previous $10 a ton to $35 a ton, extends the credit for up to 12 years, and expands the universe of eligible CO2 sources to include industrial and air capture facilities in addition to fossil power plants.
This historic outcome is the result of tireless work by ABO and its supporters in Congress to put algae on a level playing field with CCS and EOR when it comes to carbon capture policy, and to grow federal policy support for the full spectrum of CCU approaches.
A huge thanks to Senators Sheldon Whitehouse (D-RI), Heidi Heitkamp (D-N.D.), Shelley Moore Capito (R-W.Va.) and John Barrasso (R-Wyo.) for leading the charge; to the Congressional Algae Caucus for its support in the House, and to the many members of the Algae Nation who participated in this historic campaign.
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