Generic Hero BannerGeneric Hero Banner
Latest market news

US awards $93mn to carbon storage projects

  • Market: Emissions
  • 30/01/23

Two projects seeking to store CO2 beneath the seafloor in the US Gulf of Mexico will get a portion of $93mn in federal funding meant to kick-start the development of commercial-scale carbon storage.

President Joe Biden's administration has set a goal for the US to store at least 50mn metric tonnes (t) of CO2 over the next 30 years. The latest round of funding — announced today — will go to 11 projects that are looking at the technical and economic feasibility of commercial-scale storage sites in support of that goal.

"The projects announced today will get us closer to achieving our climate goals while helping to revitalize local economies and deliver environmental benefits to communities too often left behind," US energy secretary Jennifer Granholm said.

The two offshore projects remain in the early stages of development. The Port of Corpus Christi was awarded $7.4mn for a 24-month feasibility study of a geologic CO2 storage site in Texas' coastal bend region. The Southern States Energy Board, a 16-state economic development group, was awarded $8.4mn to support an offshore CO2 storage complex in the Gulf of Mexico's South Timbalier leasing area off Louisiana.

The US Energy Department awarded funds to carbon storage projects across the US, as part of the second phase of its CarbonSAFE initiative.

The awards include $9mn to the proposed "Roughrider" carbon storage hub in northwest North Dakota that would receive CO2 from multiple gas processing plants owned by US midstream operator Oneok. Another $8.8mn will support a study into the feasibility of a carbon storage complex that would receive CO2 from Calgren Renewable Fuels' ethanol and dairy digester plant in Pixley, California. The Port of Corpus Christi was receive an additional $9mn to study the feasibility of an onshore CO2 storage site under Port-owned property.

Carbon storage projects can receive federal tax credits of up to $85/t for CO2 stored in geologic formations under part of last year's Inflation Reduction Act. That law also provides a tax credit of up to $180/t for direct air capture of CO2 that is permanently sequestered.


Sharelinkedin-sharetwitter-sharefacebook-shareemail-share

Related news posts

Argus illuminates the markets by putting a lens on the areas that matter most to you. The market news and commentary we publish reveals vital insights that enable you to make stronger, well-informed decisions. Explore a selection of news stories related to this one.

News
24/01/25

US Paris exit sparks concern but also climate unity

US Paris exit sparks concern but also climate unity

London, 24 January (Argus) — Governments, companies and scientists have expressed concern at President Donald Trump's decision to withdraw the US from the Paris climate agreement, but have committed to continue with plans to decarbonise and drive forward the energy transition. "It's not a complete halt of the efforts but it's definitely a concerning moment," director of the Potsdam Institute for Climate Impact Research Johan Rockstrom told delegates this week at the World Economic Forum (WEF) in Davos, Switzerland. "The nervousness is what spillover effects this can have on other countries in the world and that in turn can end up in a serious slowdown of efforts. I'm thinking of Saudi Arabia, I'm thinking of Argentina, I'm thinking of some of the more populist governments now in Europe," Rockstrom added. Action on climate change is competing for space on policymakers' agendas with geopolitical turmoil — war in Ukraine and the Middle East — as well as economic challenges. "We're in a state of crisis fatigue… we only seem to have an attention span for one crisis at a time, so as this polycrisis environment that we've been in for the last few years… climate has been pushed down that crisis priority list, but… science behind climate hasn't changed. The impacts actually have changed in that they're simply getting worse", executive secretary of UN climate body the UNFCCC Simon Stiell said in Davos. In response to Trump's decision to pull the UK out of the Paris accord , the EU and China immediately committed to continue with their action on climate change , and both underlined the importance of multilateralism. "I want to be very clear with my message. Europe stays the course, and we stand ready to work with all global actors to accelerate the transition to clean energy," European Commission president Ursula von der Leyen said. Transition is ‘unstoppable' Many speakers in Davos noted that the energy transition to renewables is well underway, and has advanced rapidly since Trump's first term in office. "The world is undergoing an energy transition that is unstoppable," Stiell said. Several private-sector representatives attending the WEF embraced the energy transition, pointing to increased efficiency and cost savings. "I haven't found one single area where climate smart wouldn't be resource smart and cost smart," Ikea chief executive Jesper Brodin said. "Technology will win the day in the end", Volvo Cars chief executive Jim Rowan said. The consensus from a CEO lunch during the WEF was that "we are not deviating from the plans we have. We're staying on track. We're moving on a decarbonisation path, we're electrifying our industry, we're not going to be shaken up by what's happening," Rockstrom said. Within the US, action to decarbonise looks set to consolidate beyond federal level. A group of 24 US state and territorial governors have assured the UNFCCC of their continued climate action. And Bloomberg Philanthropies this week said it would step in to cover the US' financial obligations to the UNFCCC, as well as support the country's climate reporting. The long-term realities of a heating world overshadow the relatively short-term politics. "It is one of the most challenging things we will be facing in the decades to come, and the effects are devastating," EU climate commissioner Wopke Hoekstra said this week. Extreme heat is projected to cause $2.4 trillion/yr in productivity losses by 2035, as well as $448 bn/yr in fixed-asset losses for publicly listed companies, financial services provider Allianz said. The US in particular has been hit hard by catastrophic weather events — proven to be exacerbated by climate change — in recent months. California governor Gavin Newsom pointed to wildfires, which have this month devastated swathes of Los Angeles. "If you don't believe in science, believe your own damn eyes," Newsom said. By Georgia Gratton Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Find out more
News

Bloomberg to fund UN climate body in lieu of US


23/01/25
News
23/01/25

Bloomberg to fund UN climate body in lieu of US

London, 23 January (Argus) — Bloomberg Philanthropies and "other US climate funders" will ensure that the US meets its funding and reporting obligations to UN climate body the UNFCCC, after President Trump withdrew the country from the Paris climate agreement earlier this week. This is the second time that Bloomberg Philanthropies has "stepped in to help uphold [the US'] funding and reporting commitments… amid a lack of US federal climate leadership", the organisation said today. Trump pulled the US out of the Paris accord in his first term as US president, although then-President Joe Biden signed the agreement once more in early 2021. Bloomberg will "work to ensure US subnational climate leaders track and report on US climate progress over the next four years", the organisation said today. "Bloomberg Philanthropies has made significant investments in empowering local leaders, providing businesses with the data to track emissions while driving economic growth, and building coalitions across public and private sectors", founder Michael Bloomberg said. He is also a UN special envoy on climate ambition. UNFCCC executive secretary Simon Stiell welcomed the support, also noting that "government funding remains essential" for the climate body. The finance referred to is not the international climate finance often discussed at UNFCCC talks, but funding which helps the climate body operate and host events such as the annual Cop climate summits. It appears likely that the previous US administration had foreseen a lack of financial contributions from the Trump government. The US last year paid its arrears for the UNFCCC core budget in full — just under €3.4mn ($3.5mn) — leaving it in a minority of countries with no outstanding payments, UNFCCC accounts show. The US also contributed just under €7.3mn for 2024 — 22pc of the total contributed — again for the body's core budget, UNFCCC accounts show. Bloomberg Philanthropies contributed $4.5mn to the UNFCCC in 2024 for "supplementary activities", while the US provided $2.74mn, UNFCCC accounts show. Trump, in one of his first acts upon returning to office, on 20 January ordered the US to withdraw from the Paris agreement. That decision will take effect one year after the US gives formal notice to the UNFCCC. By Georgia Gratton Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

News

Poland says EU 2040 climate target a 'challenge'


23/01/25
News
23/01/25

Poland says EU 2040 climate target a 'challenge'

Edinburgh, 23 January (Argus) — Setting the bloc's climate target for 2040 as well as agreeing additional environmental and climate laws is a "challenge" for the six-month Polish EU presidency, Poland's environment minister Paulina Henning-Kloska said, as there is "no unified position". Speaking to the European Parliament's environment committee, Henning-Kloska, who chairs meetings of both environment and energy ministers, made clear that member state adoption of the bloc's 2040 target for cutting greenhouse gas (GHG) emissions will be difficult. "We had a discussion on this in the council [of ministers] last December," she said. "What is clear is that there is no unified position," she added, as some member states wants greater flexibility in reducing emissions between 2030 and 2050. Difficult discussions between EU states and in the European parliament will likely push the submission of the bloc's nationally determined contribution (NDC) — climate plan — to the UN Framework Convention on Climate Change (UNFCCC) beyond the 10 February deadline. The European Climate Law requires the European Commission to propose a 2040 climate target "at the latest within six months of the first global stocktake". The global stocktake was completed during the UN Cop 28 climate summit in Dubai, in 2023. It gauged countries' progress against the Paris Agreement and proposed measures to keep to its goals — including keeping warming preferably below 1.5°C. EU officials note that the 2040 target will "inform" the decision on the EU's next NDC. Even if the EU's NDC submission does not require a separate law, officials also "expect" to receive a political mandate from member states before the NDC submission by the European Commission and the EU's presidency, led by Poland until the end of June. Despite the threat to a speedy timeline, the commission maintains it will continue to be a "leading" voice for international climate action and aims to submit the EU's next NDC "well ahead" of the Cop 30 climate talks in Belem, Brazil in November. But German member Peter Liese thinks the EU is in "deadlock" on its 2040 target. "We may like it or not, it's very ambitious," he said. "And I don't see enough support for that target." A member of parliament's largest centre-right EPP group, Liese also picked up on Polish prime minister Donald Tusk's and Henning-Kloska's call for changes or delay to the bloc's specific emissions trading system for road transport and heating fuels (ETS2). "I don't see — without the ETS2 — member states have any plan to get to their target," said Liese, who has previously helped draft legislative revisions to the ETS. "I don't think abolishing is a solution. Postponement is also [not] the best solution," Liese said. By Dafydd ab Iago Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

News

Standardisation, better finance needed for new nuclear


23/01/25
News
23/01/25

Standardisation, better finance needed for new nuclear

London, 23 January (Argus) — Increasing financing flows and standardising new reactors will be essential to reaching the goal of tripling nuclear capacity by 2050, participants at the World Economic Forum in Davos, Switzerland, heard. A total of 31 countries have signed up to a pledge, first announced at the UN Cop 28 climate summit in Dubai in 2023, to triple global nuclear power capacity by 2050. The pledge was one of several made at the summit, including a commitment to transition away from fossil fuels in energy systems, triple renewable capacity by 2030 and double the rate of energy efficiency improvements. Installed capacity of nuclear reactors has been roughly stable over the last 20 years, holding in a range of 350-380GW since 2004, according to data from the International Atomic Energy Agency (IAEA). And reaching this goal would require building 30 GW/yr of net new capacity over 2030-50. As of 2024, there are 63 reactors under construction, with a capacity of 71GW, of which roughly half are in China, according to IEA data. Standardising new reactors will be key to achieving this goal, according to Luc Remont, head of French state-owned nuclear constructor and operator EdF. The firm's most recently built reactors have been plagued with cost overruns and delays. The 1.5GW Flamanville 3 reactor, which entered service late last year in France, took 17 years to build and cost upwards of €20bn ($21bn). But the firm is preparing to build 6-14 new reactors in France, and hopes to learn from the construction process to reduce costs and delays. EdF has reduced lead times by 30pc on the second reactor of its two-reactor Hinkley Point C plant in the UK, Remont said. Making nuclear power more attractive to investors will unlock some of the vast sums required to reach the tripling goal, according to Darryl White, head of Canadian bank BMO. Tripling nuclear capacity will cost $5 trillion, he said, an "enormous challenge", and while some will come from governments and banks' balance sheets, other investors will be needed. Delivery of projects needs to be more certain, while financing models such as regulated asset base or contracts for difference (CfDs) will be needed to provide certainty on returns, he said. Policy makers are behind the curve on the growing need for base load generation, according to Swedish deputy prime minister Ebba Busch. Money globally has been funnelled into intermittent renewables, but industry is now aware of the need for more clean base load generation, whether nuclear or hydro. Sweden is hoping to pass a law this year to increase financing — including state loans and CfDs — for new nuclear, she said. By Rhys Talbot Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

News

EU must be 'honest' about Green Deal: Poland


22/01/25
News
22/01/25

EU must be 'honest' about Green Deal: Poland

Brussels, 22 January (Argus) — The EU must undertake a "full and very critical" review of the bloc's Green Deal, Polish prime minister Donald Tusk told the European Parliament. Tusk outlined Warsaw's view on climate and energy policies during the country's recently-started six-month presidency of the EU's council of ministers. "If we go bankrupt no-one will care about the world's environment any more," Tusk said, calling for an honest, full and "very critical review of all regulations, including those arising from the Green Deal". Launched in 2019 under the previous European Commission term, also led by president Ursula von der Leyen, the Green Deal was adopted in 2023 and notably included revisions of the emissions trading system (ETS) to support a steeper 55pc reduction in the bloc's greenhouse gas (GHG) emissions by 2030. Tusk wants any review to identify and change EU laws that may lead to higher energy prices. "There is, for example, the issue of ETS 2 in front of us," he said, singling out the separate trading system covering emissions from road transport and heating fuels, which is scheduled to launch in 2027. "I would also ask you to reflect deeply, critically and bravely on the consequences of introducing ETS 2 at such a rapid pace," he told parliament. Poland holds the EU council presidency until the end of June. Any legal changes to the ETS would require a majority within parliament and a qualified majority of the 27 EU member states. But several, including France, Germany, Sweden and Austria, have been outwardly reluctant to tweak climate legislation and delay the introduction of the ETS 2. "Our union will only survive if we continue to implement the Green Deal, the sole instrument capable of ensuring the survival of our planet," warned Spanish MEP Iratxe Garcia, leader of parliament's second largest group, the centre-left S&D. By Dafydd ab Iago Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Generic Hero Banner

Business intelligence reports

Get concise, trustworthy and unbiased analysis of the latest trends and developments in oil and energy markets. These reports are specially created for decision makers who don’t have time to track markets day-by-day, minute-by-minute.

Learn more