Texas Carbon Capture Opportunities
Texas has an immense opportunity to deploy carbon management technology to lower carbon emissions and transform captured CO2 into an economic resource. Ranked first in crude oil and natural gas production, 683 of the state’s power and industrial facilities qualify for the 45Q tax credit. If retrofitted with carbon capture technology, these facilities could capture 334 million metric tons of CO2 annually.
As one of the first states to enact carbon capture utilization and storage legislation, Texas has some of the nation’s most comprehensive carbon management incentives and legislation. With a supportive tax structure, comprehensive legislation, and geologic potential, Texas is projected to continue as a leader in carbon management policy development and project deployment.
Facilities that Qualify for the Tax Credit in Texas
The Regional Carbon Capture Deployment Initiative has identified industrial facilities in numerous states as candidates for carbon capture retrofits. These facilities could qualify for the 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.