Carbon Utilization Research Council (CURC)
Advancing Fossil Energy Solutions
On July 4th, President Donald Trump signed a budget reconciliation package, known as the One
Big Beautiful Bill Act (OBBB), into law. The OBBB includes changes to prominent energy
incentives, like the Section 45Q carbon oxide sequestration tax credit, to help deploy carbon
capture, utilization and storage (CCUS) projects.
Washington, D.C.: Carbon capture, utilization and storage (CCUS) is important for enhanced oil recovery (EOR). The United States has tremendous resource contained in many formations throughout the country with over several hundred billion barrels of additional oil in place. As production matures with current recovery methods, there is a critical need for large-scale injections in formations which will need billions of tons of CO2 captured from industrial sources to sustain oil and gas production with EOR.
CURC believes that the Senate’s decision to create parity under the Section 45Q tax credit by giving equal treatment for CO2 captured for increased energy production, utilization, and sequestration is critical to making that happen and is pleased to see that included in the Senate package. CURC is very appreciative that the Senate recognizes the vital importance of maintaining the commence construction date through December 31, 2032 and transferability for that period, which will ensure investment certainty and provide a necessary runway for the use of CO2 for EOR to facilitate the development of large-scale CCUS deployment across the country and promote a practical, market-driven approach to lowering emissions and producing a lower CO2-intensity barrel of oil.
CURC Executive Director Shannon Angielski stated, “We are especially grateful to our Senate champions for their strong support of 45Q particularly the GOP senators who led the introduction of the Enhancing Energy Recovery Act and for recognizing the critical role CCUS plays in strengthening America’s energy future.”