Montana Carbon Capture Opportunities

Montana has an established regulatory framework for carbon management, setting it ahead of many states. In 2009 the state passed SB 498, defining several key issues, including pore space ownership, long-term liability and management, unitization, and primacy. The state also incentivizes carbon capture through 50% capture requirements for new coal plants and property tax abatements for carbon capture equipment. Former Governor Bullock was a strong proponent of carbon management and a founding member of the State Carbon Capture Work Group and the Regional Carbon Capture Deployment Initiative. Additionally, Montana is a part of the Big Sky Carbon Sequestration Partnership, one of seven DOE regional partnerships aimed at increasing the deployment of carbon management technologies. There are eight facilities in the state that are eligible for the 45Q federal tax credit, six of which have been identified as potentially economically feasible near-term retrofit candidates. If retrofitted, these six facilities have the combined potential to capture 7,410,827 metric tons of CO2 per year.


Industrial Facilities that Qualify for the Tax Credit in Montana

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.



Economically Feasible Industries in Montana

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 Montana’s 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.