The State of the Carbon Capture and Sequestration Industry in California in 2024: Challenges and Policy Solutions

Authors

Noah Jackson, Pepperdine UniversityFollow

Document Type

Capstone

Publication Date

Spring 4-17-2024

Keywords

CO2, Carbon Capture, Carbon Capture and Storage, Carbon Capture and Sequestration, CCS, Bioenergy, BECCS, renewable energy, California, Green Energy, climate, Climate goals

Abstract

Carbon Capture and Sequestration (CCS) is the process of capturing CO₂ from an above ground carbon source, transporting it to a sequestration well, and permanently sinking it deep underground. Despite the state of California depending on CCS to reach carbon neutrality, not one CCS project is operational yet in the state. Due to the recent creation and expansion of state low carbon fuel standard (LCFS) credits and the federal 45Q credits, CCS projects are beginning to be developed. Between 2021 and 2023 twelve Class VI applications were submitted to the US Environmental Protection Agency (EPA) in California.

This paper looks at the history and development of the CCS industry. It then uses interviews from six industry experts through a qualitative data method to gain perspective on how permitting, financing, CO₂ transportation, and property rights are affecting the industry, and whether any policy changes need to be made to improve the industry. After an analysis of twelve policy options, policy recommendations are identified, and include: updating the Class VI application process in three specific ways, expanding certified options for CO₂ transportation to include carbon reinforced polymer containers, expanding grant funds available to CCS developers, and educating property owners on the value of their pour space to encourage informed decisions on participating in CCS projects.

Comments

The following datasets available upon request to Sheryl Covey at Pepperdine University School of Public Policy:

• California Class VI Permitting Info (source: EPA Underground Injection Control (UIC) Permits in EPA's Pacific Southwest (Region 9))
• Class VI Permits Submitted by Year (source: EPA Underground Injection Control (UIC) Permits in EPA's Pacific Southwest (Region 9))
• CARB CDR Targets from 2022 Scoping Plan (source: CARB 2022 Scoping Plan, pg. 96)

Recommended Citation

Jackson, Noah, "The State of the Carbon Capture and Sequestration Industry in California in 2024: Challenges and Policy Solutions" (2024). Pepperdine University, School of Public Policy Capstones. Paper 3.
https://digitalcommons.pepperdine.edu/sppcapstones/3