Michigan Carbon Capture Opportunities
Michigan holds extensive economic and environmental opportunities for the deployment of carbon capture technology and storage. The recently reformed 45Q tax credit has made implementing carbon capture technology economically feasible and of great value to the state. Industries such as coal and gas play a significant role in Michigan’s electric generation and consumption, but emit nearly 70% of the state’s CO2 emissions. Implementing carbon capture technology on eligible emitting facilities can cut nearly 90% of CO2 emissions in the state. Capturing CO2 from industrial markets as well as expanding research on storage potential could put Michigan in a prime position for reducing carbon emissions while sustaining vital industries in the region.
Industrial Facilities that Qualify for the Tax Credit in Michigan
The Regional Carbon Capture Deployment Initiative has identified industrial facilities in numerous states as early candidates for carbon capture retrofits. These facilities could qualify for the revamped federal 45Q tax credit for projects that capture carbon from industrial facilities and power plants for geologic storage and beneficial use. Facilities were selected based on emissions, equipment, and estimated capture cost.
The Regional Carbon Capture Deployment Initiative estimated theoretical capture costs based on published capture equipment costs, facility-specific operational patterns, existing equipment, and level of emissions. Based on that data, the graphic below displays several of Michigan most likely economically feasible candidates for capture, along with estimated capturable emissions in million metric tons and estimated range of capture costs for facilities in each industry. This list is not meant to be definitive. Commercial decisions by participating companies and policy and regulatory decisions by state governments will ultimately determine if a project is feasible for carbon capture. “Captured Emissions” refers to the amount of carbon dioxide that can be expected to be captured at a facility considering relevant technological and economic constraints.
