carbon capture and sequestration

Three funding opportunity announcements and a finance program provide significant investments to support carbon capture and sequestration.

By Jennifer Roy, Janice Schneider, Joshua Bledsoe, and Brett Frazer

Demand for carbon capture and sequestration (CCS) to meet global and national climate goals is on the rise. The International Energy Agency (IEA) 2020 World Energy Outlook suggests that CCS could contribute approximately 15% of cumulative emissions reductions worldwide by 2070.[1] The Intergovernmental Panel on Climate Change (IPCC) AR6 Working Group III Report further identifies the need for carbon dioxide (CO2) removal technology and to build a carbon management industry to achieve global net zero goals.[2] In view of the growing interest in CCS, and as discussed in this Latham blog post, the Biden Administration has announced ambitious decarbonization goals that prominently feature efforts to deploy CCS in the US.[3]

In September and October 2022, the US Department of Energy (DOE) released three funding opportunity announcements (FOAs) and one new finance program that, cumulatively, will provide an additional $7 billion for CCS infrastructure. Two of the FOAs feature grant funding for front-end engineering design (FEED) studies, and the final FOA and finance program feature a combination of grants and loans. Funding for these programs was appropriated in the Infrastructure Investment and Jobs Act (IIJA), which President Biden signed into law in November 2021. The IIJA delivers approximately $75.8 billion for energy and minerals-related research, demonstration, technology deployment, and incentives, including $12.2 billion administered by DOE and dedicated to CCS technology and infrastructure.

This blog post summarizes the three FOAs and the new finance program.

Governor Newsom introduces five ambitious proposals that could alter California’s climate policy for years to come.

By JP Brisson, Nikki Buffa, Marc Campopiano, Jennifer Roy, Michael Dreibelbis, Aron Potash, and Alicia Robinson

On August 12, 2022, California Governor Gavin Newsom submitted five climate proposals (the Climate Proposals) to the California legislature in the waning days of California’s legislative cycle. In his statement following the transmittal, Newsom explained that “[w]e’re taking all of these major actions now in the most aggressive push on climate this state has ever seen because later is too late.”[1]