Delaware Carbon Capture Opportunities

Carbon management could play an important role in Delaware’s emissions reductions targets and clean energy goals. Of the 19 industrial and power facilities in the state, 14 are eligible for the 45Q federal tax credit. Collectively, these facilities emit nearly 5.5 million metric tons of carbon dioxide (CO2), representing 99 percent of the state’s total annual CO2 emissions. The highest proportion of these are gas power plants, with four facilities in the state. The highest emitter is its one refinery, which emits 3.4 million metric tons of CO2 annually.
Though Delaware has not yet passed specific carbon management legislation, the state does have legislatively mandated emissions reduction targets and has addressed carbon management in its energy plans. Additionally, Delaware submitted a letter of intent to apply for funding under the US Environmental Protection Agency’s (EPA) Underground Injection Control (UIC) Class VI grant program in 2023, further signaling the state’s interest in carbon management as an emissions reduction strategy. This grant program was developed to help states prepare for Class VI primacy, which gives individual states primary permitting authority over their Class VI injection wells.

Industrial and Power Facilities in Delaware
Delaware has 14 facilities that are eligible for the 45Q tax credit. The plurality of these facilities are gas power plants, with four facilities in the state. Delaware has one refinery, which is also its highest emitter, representing 62 percent of the state’s total annual CO2 emissions. Additionally, Delaware has three chemical plants, one coal power plant, two hydrogen facilities, and three other facilities that are 45Q-eligible. Together, these 14 facilities emit nearly 5.5 million metric tons of CO2 annually and represent 99 percent of the state’s total annual CO2 emissions.
Delaware also has the potential for permanent offshore geologic storage. The state is within the footprint of the Midwest Regional Carbon Sequestration Partnership (MRCSP), which covered 10 states and included numerous universities, state geological surveys, research institutions, and industry representatives. The MRCSP carried out field tests of carbon capture, conducted regional mapping, and participated in stakeholder outreach. The MRCSP states were folded into the Midwest Regional Carbon Initiative (MRCI) several years ago, which has since carried out additional research.
Additionally, Delaware’s proximity to other Mid-Atlantic states with a heavy industry presence makes the state well-positioned as a corridor for transporting CO2 regionally.
Sources: EPA GHGRP, 2024. Bauer et al., NATCARB, 2018.
Legislative Context for Carbon Management
Delaware has not passed any legislation specifically addressing carbon management, nor is any related legislation currently active as of January 2025. However, the state passed HB 99 in 2023, which requires Delaware to reduce state-wide greenhouse gas emissions by 50 percent from 2005 levels by 2030, and 100 percent by 2050. Carbon capture and storage is mentioned in Delaware’s 2024-2028 State Energy Plan, and the current stated strategy is to encourage research, development, and commercialization efforts related to these technologies. It also mentions carbon capture and utilization as a viable pathway to decarbonizing building materials.
Additionally, Delaware was selected to participate in the EPA’s UIC Class VI grant program in 2023. As such, the state would benefit from advancing legislation to enhance its regulatory oversight of CO2 storage wells to ensure compliance with federal standards.
This bubble diagram shows the number of facilities and corresponding annual CO2 emissions for each industry in North Dakota. The darker large bubbles are eligible for the 45Q carbon capture tax credit, while the faded bubbles are too small to be eligible. The total amount of CO2 emissions in North Dakota is listed for each industry.
Sources: EPA GHGRP, 2024. Bauer et al., NATCARB, 2018.
Last updated: February, 2025