Local Governments and Grassroots Activists Stop Spate of US Carbon Capture Pipelines

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Original article by Taylor Noakes republished from DeSmog

A metal sign warning of a buried carbon dioxide pipeline in Huerfano County, Colorado. Credit: Jeffre Beall, CC BY 4.0
A metal sign warning of a buried carbon dioxide pipeline in Huerfano County, Colorado. Credit: Jeffre Beall, CC BY 4.0

Players in the carbon dioxide pipeline industry canceled major pipeline projects in recent weeks, marking an inauspicious start to President Biden’s ambitious plans to develop carbon capture infrastructure as a key emissions mitigation tool.

It is welcome news to CO2 pipeline opponents, however, which have included a wide spectrum of interest groups united in their concerns over pipeline safety.

“I think what the cancellation shows is that people have had enough of fossil fuel infrastructure being forced upon them,” said Lorne Stockman, research co-director with Oil Change International. “It doesn’t surprise me that communities are standing up to these projects and occasionally winning.”

Stockman pointed out that the U.S. oil and gas industry has built millions of miles of pipelines, and hundreds of thousands of miles were installed in the last decade and a half as a result of the fracking boom. “There is a general awareness that the age of fossil fuels needs to end and that we need to transition to genuinely clean energy, and not dangerous distractions like carbon capture,” he added.

Navigator CO2 Ventures ended their “Heartland Greenway” carbon dioxide pipeline project on October 20, citing “the unpredictable nature of the regulatory and government processes involved.” The project aimed to capture 15 million metric tons of carbon dioxide from ethanol plants in the U.S. Midwest to be injected and stored underground. Much like the fossil fuel industry — which seeks to use carbon capture and storage (CCS) because they allege it will assist in decarbonizing continued oil production — carbon capture is the primary emissions mitigation tool preferred by the ethanol industry as well.

However, experts point to significant problems with the CCS process, particularly that it has historically been used primarily to pump more oil out of the earth. Burning that oil emits much more CO2 than what is captured, which means the technology wouldn’t represent a feasible solution to address climate change.

Both local and national reporting indicate that the Navigator pipeline proposal attracted the attention of diverse groups of citizens often portrayed as being on opposite ends of the political spectrum. Yet they stood undivided in voicing shared concerns over pipeline safety and possible expropriations via eminent domain.

Navigator’s $3.5 billion Heartland Greenway project called for 1,300 miles of pipeline across five states, with carbon dioxide storage to have taken place in Illinois. Residents in that state were resolutely opposed to the project, largely because of fears related to a pipeline rupture, like the one in Satartia, Mississippi, in February 2020. Nearly 50 people were hospitalized in that disaster, and continue to suffer from adverse health effects. 

The disaster also forced the evacuation of 300 people, after the rupture spewed the odorless, colorless gas into the air for several hours. Carbon dioxide is an asphyxiant, and CO2 poisoning can leave victims disoriented and appearing to be drugged. Left untreated it can eventually lead to cardiac and pulmonary problems. More problematic is the relative rarity of mass CO2 poisoning events, meaning first responders might be unfamiliar with how to treat the symptoms. In addition, first responders — such as those responding to the disaster in Satartia — could be hampered by the engines of their vehicles shutting off in the oxygen deprived environment.

These critical health, safety, and disaster-response issues notwithstanding, it was regulatory and bureaucratic processes that have so far stymied carbon dioxide pipeline and capture projects in the Midwest.

South Dakota regulators denied Navigator’s application to build a section of the pipeline in that state in September. 

The CCS company’s decision to cancel the project is significant for several reasons. 

First, Navigator sought to use eminent domain to force landowners to give up their property, and was unsuccessful. Had these been oil or gas pipelines, the landowners might not have been as successful, because fossil fuel pipelines have generally been considered so fundamentally important to the public good that oil and gas companies can get around the Public Use Clause in the U.S. Constitution’s Fifth Amendment

The company also has some serious financial backers, including Texas-based oil refiner Valero Energy Corp., and the world’s largest asset management company, BlackRock.

Iowa-based Summit Carbon Solutions is also proposing the Midwest Carbon Express, a $5.5 billion, 2,000-mile pipeline network across five states, to sequester carbon dioxide emissions from 34 ethanol plants. The CO2 was to be stored in North Dakota, but state regulators denied Summit Carbon a siting permit in August. Then the South Dakota Public Utilities Commission voted unanimously to strike down the company’s application to build a section of the pipeline network through that state as well. Though other pipeline projects have faced stiff public opposition, authorities denied the application to build this pipeline segment because it would violate county ordinances relating to setbacks and other aspects of the pipeline’s route. Summit has accepted the decision and indicated it would “refine their proposal and refile” for the necessary permits.

The Biden administration promised $251 million for CCS projects in seven states in May, from an estimated $12 billion fund from the Bipartisan Infrastructure Law for carbon management in the United States. Reporting from the Associated Press indicated that the funding announcement was a vote of confidence for what is expected to be a largely industry-driven initiative. The same article revealed that most of the funds have been dedicated to nine existing carbon capture projects, with an aim to sequester 50 million metric tons of carbon dioxide. Though this may seem impressive at first glance, it’s negligible when compared with the 5.5 to 6.3 billion metric tons of CO2 emitted annually in the United States alone. It’s especially insignificant given that most, if not all, of these projects are used for enhanced oil recovery — the injection of carbon dioxide into wells to extract the last remaining amounts of oil for production. 

“Instead of incentivizing a CO2 reduction, the Inflation Reduction Act, along with the Infrastructure Investment and Jobs Act, through their funding of carbon capture, actually incentivize net increases in CO2, air pollution, land use and consumer costs,” said Mark Z. Jacobson, in an editorial published by The Messenger. Jacobson is a  professor of civil and environmental engineering and director of Stanford University’s Atmosphere/Energy Program.

Jacobson identified the Summit project as one that is a direct beneficiary of Biden administration incentives for carbon capture. Noting that no study had determined whether this was an effective or efficient use of public money, Jacobson conducted a study to find out, which was recently published in Environmental Science and Technology. Jacobson compared the anticipated emissions savings and cost of the Summit project, which was intended to provide decarbonized ethanol for use in flex-fuel vehicles, with spending an equal amount on wind farms. The comparison also used two 2023 Ford F-150 pickup trucks for the modeling, as the F-150 is available in both electric and flex-fuel powered variants.

The results were impressive: Compared with the flex fuel-powered F-150, the fully electric version, powered by renewable wind energy, reduced CO2 emissions by 2.4 to four times, and could save drivers tens of billions of dollars – even accounting for the higher cost of the electrically powered F-150. Using wind power would also use 1/400,000 of the land footprint, and would lower air pollution levels, too.

Not only is this better for consumers, the wind and electric vehicle model virtually eliminates CO2 emissions, negating any need for carbon capture, while the ethanol and flex fuel model, even with carbon capture, would still result in a net CO2 increase.

Watchdogs argue carbon capture is being presented to the public as part of the government’s decarbonization efforts, despite being consistently proven to be incapable of reducing CO2 at the scope and scale necessary for climate change mitigation.

“Carbon capture started as a means to enhance oil production,” said Stockman. “It was not developed to address climate change.”

He pointed out that CO2 must be separated from methane in gas processing plants to meet market requirements for gas, and in most cases, it is vented into the atmosphere. In 1972, a plant at the Sharon Ridge oilfield in Texas was designed to capture CO2 from a particularly CO2-rich source of gas. Engineers wanted to see if pumping it into declining oil wells would help squeeze more oil out and make more money, Stockman said. “It worked, and that has been the model for CCS ever since.”

Stockman said that most attempts to use carbon capture and storage to reduce emissions from power plants have failed or been found to be too costly to pursue. 

“The most notable success that CCS can claim is how successfully it has been used to convince politicians that it will one day be able to reduce emissions and, therefore, should be supported with public money,” he noted. 

“It’s been very successful in capturing public money, which is a testimony to the long history of ‘state capture’ that the oil and gas industry has enjoyed in the U.S.,” he added, referring to Big Oil’s pressure on governments to secure public funding for their projects.

“Large budgets for lobbying and campaign finance have helped the industry maintain subsidies and tax credits, some of which have been around for many decades,” Stockman said. “The 45Q tax credit for carbon capture and EOR [enhanced oil recovery] is just the latest in this long history.”

The ethanol industry is expecting demand to decline in coming years, as recently reported by S&P Commodity Insights. Producing ethanol with CCS would meet some government and industry standards for lowering carbon intensity fuels. 

However, experts and analysts routinely point out the capturing and transport process is itself carbon intensive, to the point of negating whatever positive effects sequestration might provide. Jurisdictions like California, Washington state, and the Canadian province of British Columbia could still be viable markets for low carbon intensity ethanol. There is also the possibility of using ethanol as a sustainable aviation fuel, but it all hinges on developing the infrastructure to sequester the carbon dioxide emitted during production. 

Even if current pipeline projects have been canceled or shelved, there’s still considerable industry interest and incentive in finding a way to make the projects work.

Stockman urges caution before activists take a victory lap.

“I think folks need to be aware that while they have succeeded in the Midwest, communities in Texas and Louisiana are facing an overwhelming surge in gas, LNG, and CO2 infrastructure,” he said. “Both states have very oppressive legislation in place against protest and opposition to fossil fuel infrastructure, and these communities need our support, as their fight is much harder.” 

Original article by Taylor Noakes republished from DeSmog

Continue ReadingLocal Governments and Grassroots Activists Stop Spate of US Carbon Capture Pipelines

Capturing Cop28 chief’s oil firm emissions would take centuries – study

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https://www.theguardian.com/environment/2023/nov/15/capturing-cop28-chiefs-oil-firm-emissions-would-take-centuries-study

Analysis deems technology promoted by Sultan Ahmed Al Jaber ‘dangerous red herring’

Dr. Sultan al Jaber. Image: Arctic Circle, CC BY 2.0, via Wikimedia Commons
Dr. Sultan al Jaber. Image: Arctic Circle, CC BY 2.0, via Wikimedia Commons

Climate-wrecking emissions produced by the oil company of the Cop28 president, Sultan Ahmed Al Jaber, would take hundreds of years to remove using the carbon capture technology he has been promoting.

With just weeks to go until the crucial Cop28 climate summit, Al Jaber, who is the boss of United Arab Emirate oil company Adnoc, has been backing carbon capture as one solution to the climate crisis.

But analysis by Global Witness has found it would take the company 343 years to capture all the CO2 emissions it will produce in just the next six years.

Jonathan Noronha Gant from Global Witness said the findings proved carbon capture was “a dangerous red herring” that would do nothing to tackle the climate crisis.

“Sultan Al Jaber’s Cop is shaping up to be the Cop of false solutions, inundated by fossil fuel lobbyists pushing empty promises. If Al Jaber is serious – if we are serious – we must immediately reject the CCS [carbon capture and storage] false solution and tackle the existential oil and gas problem head on.’’

https://www.theguardian.com/environment/2023/nov/15/capturing-cop28-chiefs-oil-firm-emissions-would-take-centuries-study

Continue ReadingCapturing Cop28 chief’s oil firm emissions would take centuries – study

Major Polluters In ‘Ludicrous’ Push For Carbon Capture at Party Conferences

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Original article by Adam Barnett and Rachel Sherrington republished from DeSmog.

The technology could provide cover for fossil fuel companies to explore more oil and gas drilling, campaigners say.

By Adam Barnett and Rachel Sherrington on Sep 29, 2023 @ 05:14 PDT

Prime Minister Rishi Sunak and Labour leader Keir Starmer. Credit: DeSmog via UK Parliament (CC BY 3.0)
Prime Minister Rishi Sunak and Labour leader Keir Starmer. Credit: DeSmog via UK Parliament (CC BY 3.0)

A trade group for contested carbon capture with close ties to major oil and gas companies is sponsoring over a dozen events at the Conservative and Labour conferences over the next fortnight. 

Fossil fuel companies are using the technology as “a fig leaf” to pursue oil and gas drilling, campaigners have warned, as industry lobbyists across the energy sector seek to win over policymakers.

The Carbon Capture and Storage Association (CCSA), a trade body promoting carbon capture utilisation and storage (CCUS), is due to host 15 events across the Conservative and Labour gatherings, which begin on Sunday in Manchester.

The London-based CCSA describes itself as the “lead” European organisation for CCUS, promoting the “rapid” and “commercial” deployment of the technology. The process involves capturing CO2 emissions from industrial production and storing it underground. Some technologies allow the captured CO2 to be re-used by converting it into plastics, concrete or biofuel. 

The group says that its members are “companies across the CCUS industry” including “support services in the energy sector” such as law, banking and consultancy.  

Nearly a fifth of the CCSA’s 100 members are oil and gas companies, including BP, Exxon, Shell and Equinor. Fossil fuels are the largest contributor to climate change, producing 75 percent of global greenhouse gas emissions and nearly 90 percent of all carbon dioxide emissions.

The CCSA board is also dominated by key figures at oil and gas companies, including BP, Equinor, TotalEnergies and Shell. 

Lorne Stockman, research co-director at the campaign group Oil Change International, told DeSmog: “It’s very clear what carbon capture serves and who it’s a solution for, and that’s the fossil fuel industry. 

“This isn’t about the best way of addressing the climate crisis, it’s about keeping the industry in business.”

He said the companies were trying to hedge their bets by winning over both the Conservatives and Labour, in the hope of continued government funding to support the high infrastructure costs.

“They pay both parties as much as they can,” said Stockman. “They’ve got the resources, they’ve got the money, they’ve got the influence, and of course they’re showing up to ensure that the fossil fuel industry continues to get public support even while we try to confront the climate emergency.”

Carbon capture and storage, and the extension of the technology, CCUS, has been touted by major polluters as a way to cut their production emissions to meet climate targets. 

But the role of carbon capture in the energy transition is hotly contested. Climate scientists point to the failure of CCS to remove significant amounts of CO2 emissions while campaigners warn of the high costs compared to renewable energy. The vast majority of companies use the captured CO2 to extract more oil through a process called “enhanced oil recovery”.

A DeSmog analysis published this week found the majority of large-scale global CCS projects have spectacularly failed to deliver what they promised, overran budgets and targets, and resulted in a net increase in emissions.

A CCSA spokesperson told DeSmog: “We are proud to bring a wide variety of our members to party conferences this year to engage with politicians, delegates and the media on the vital role carbon capture and storage technology will play in the net zero transition. 

“This technology will ensure industry can continue to support jobs making critical products such as steel and cement in the UK, rather than importing them from abroad, as well as creating 70,000 new jobs in green industries. 

“Carbon capture technology will be an important part of the solution, alongside reducing energy use and rolling out renewable electricity as we all work together to reach net zero.”

Fossil Fuel Presence

The UK government has committed £20 billion of investment for carbon capture and storage over the next 20 years, and aims to capture and store 20-30 million tonnes of CO2 per year by 2030 and over 50 million by 2035. 

The “CCUS Investor Roadmap”, updated this year, sets out plans to deliver four CCUS “low-carbon” industrial clusters by 2030, and capture and store nine million tonnes of CO2 from industrial CCS by 2035.

Despite well-documented concerns over carbon capture, industry executives will look to increase the government’s commitments further and showcase its “key role in decarbonising industry”, when they join the Conservatives in Manchester next week, and Labour in Liverpool later in the month. 

Experts and MPs – yet to be named – have been invited to the group’s ticketed drinks receptions, while a number of talks are dedicated to promoting the technology as a crucial part of the UK’s “green industrial revolution”.

“Our politics are shot through with oil and gas lobbyists, it’s just at party conferences they come into the light a little bit more,” Tessa Khan, executive director of fossil fuel campaign group Uplift, told DeSmog.

“This is a ludicrous amount of special pleading for a technology, carbon capture and storage, that, on the current trajectory, will play a marginal role in reducing industrial emissions and at worst is a fig leaf for more oil and gas drilling.”

The CCSA reception in Liverpool at the Labour Party conference will feature food, drinks and speeches from industry leaders, with members of the shadow cabinet expected to attend.

Doug Parr, chief scientist and policy director at Greenpeace, told DeSmog that CCS “has been used and continues to be used as a cover for fossil fuel exploitation”. 

“If the CCS crew are out and about at party conferences, one has to have a suspicion, given the number of fossil fuel industries that continue to be involved with them, that that’s what’s being attempted in the UK”, he said. 

Board Members and Political Influence

Individuals from the fossil fuel industries are well represented on the CCSA board, as well as the group’s membership. 

Oil and gas companies TotalEnergies, Wintershall Dea, Uniper, Phillips 66 UK, Neptune Energy and Eni are also members of the CCSA, alongside Drax, the UK’s single largest emitter of CO2. Drax is seeking an estimated £31.7 billion in subsidies for its proposed biomass energy carbon capture and storage (BECCS) plant, which is being trialled in its CCUS “incubation area” in North Yorkshire.

The CCSA board is also dominated by career oil and gas executives who have spent decades working in the industry.

Chair of the CCSA, Jonathan Briggs, is director of a CCS project run by Vitol, a Dutch multinational energy and commodity company which trades oil, gas and coal. Briggs works on the “Humber Zero” project to decarbonise VPI Power’s Combined Cycle Gas Turbine in Immingham, North Lincolnshire.

The board includes Rowaa Ahmar, group head of public affairs, policy and bioenergy with carbon capture and storage (BECCS) at biomass company Drax, the UK’s largest single emitter of CO2. 

Other board members include Graeme Davies, a project director at Harbour Energy; Shirley Oliveira, vice president for hydrogen and CCUS advisory services at BP; Dan Sadler, UK vice president for low carbon solutions at Equinor; Gaël Le Parc, UK CCS director for TotalEnergies; and Steve Schofield, head of climate and carbon policy and advocacy at the corporate relations department of Shell. 

The CCSA also has political connections. CCSA president, Baroness Liddell, was a Labour minister under former prime ministers Tony Blair and Gordon Brown. Joe Butler-Trewin, CCSA’s Public Affairs and Communications Officer in London, worked on Keir Starmer’s 2020 campaign for the Labour leadership. 

The Conservative and Labour parties did not respond when contacted for comment. 

Original article by Adam Barnett and Rachel Sherrington republished from DeSmog.

Continue ReadingMajor Polluters In ‘Ludicrous’ Push For Carbon Capture at Party Conferences

How Carbon Capture and Storage Projects Are Driving New Oil and Gas Extraction Globally 

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Original article by Michael Buchsbaum and Edward Donnelly republished from DeSmog.

The oil industry’s push to portray carbon capture as a climate solution at COP28 obscures how the technology is really being used.

Shell and its joint venture partners have a Quest carbon capture and storage (CCS) project at its Scotford Complex near Fort Saskatchewan, Canada. Credit: Government of Alberta, CC BY-NC-ND 2.0
Shell and its joint venture partners have a Quest carbon capture and storage (CCS) project at its Scotford Complex near Fort Saskatchewan, Canada. Credit: Government of Alberta, CC BY-NC-ND 2.0

When Sultan Ahmed Al Jaber opens the 28th annual UN climate conference in Dubai in November, he will be juggling two roles – convincing the world of the United Arab Emirates’ leadership in reducing greenhouse gas emissions, while preserving the very industry that’s causing them. 

In addition to his job as summit president, Al Jaber heads the Abu Dhabi National Oil Company (ADNOC), which plans to increase its oil and gas output by 11 percent by 2027. The company says that more oil will mean less emissions, however — provided the industry builds enough facilities to capture carbon dioxide (CO2), the main gas causing the climate crisis.  

“We must be laser-focused on phasing out fossil fuel emissions, while phasing up viable, affordable zero carbon alternatives,” Al-Jaber said at a pre-COP 28 event in Bonn in June. The statement was widely interpreted as a pitch for carbon capture. 

On September 6, ADNOC finalized a deal to build a carbon capture and storage (CCS) project in the UAE’s Habshan oil and gas field, extending the company’s existing CCS operations at a steel plant. Now projected to become one of the largest carbon capture plants in the Middle East, ADNOC says the facility will have the equivalent climate impact of removing 500,000 cars from the road.

In fact, the project will be used to squeeze even more oil from the ground. Most of the CO2 ADNOC already captures is pumped into existing oil wells, forcing residual crude to the surface in a process known as “enhanced oil recovery” or “EOR”.

It is a trend reflected across the sector: Of the 32 commercial CCS facilities operating worldwide, 22 use most, or all, of their captured CO2 to push more oil out of already tapped reservoirs. This fleet accounts for approximately 31 million tonnes of the world’s roughly 42 million tonnes of operational carbon capture capacity, according to figures published by the industry-backed Global CCS Institute, U.S. Energy Information Administration and other sources. 

But the fact that existing carbon capture projects are mostly used to bring more oil to the surface has not stopped oil and gas companies championing the technology as a climate solution in the run-up to COP28.

In January, ExxonMobil Tweeted a video interview with a safety and environment supervisor at its LaBarge CCS project in Wyoming. 

“Welcome to La Barge — the industrial facility that has captured the most CO2 emissions on earth to date,” says a caption at the start of the clip.

Nowhere does the video mention that most of the CO2 captured from the LaBarge gas processing plant is being injected underground to extract more oil.  Research by the Institute for Energy Economics and Financial Analysis, a nonprofit energy think tank, shows that 97 percent of CO2 captured by the La Barge facility has been sold for EOR since the plant began operations in 1986. In times when EOR was not profitable, CO2 was simply vented into the atmosphere.

While CCS is proving a boon for the fossil fuel industry, a DeSmog review of 12 of the world’s biggest projects has found a litany of missed carbon capture targets; cost overruns; and multi-billion-dollar bills to taxpayers in the form of subsidies. 

DeSmog’s research also raises questions over an oft-cited claim that industry captures 41 million tonnes of CO2 annually — or 0.1 percent of the world’s approximately 37 billion tonnes of energy-related CO2 emissions.

Beyond the consistent underperformance of many CCS projects, DeSmog found that most either strip out CO2 in the process of refining fossil fuels, or use their captured CO2 to push more oil out of the ground — or both. The result: existing CCS projects are enabling the release of a much greater amount of overall CO2 emissions into the atmosphere than they are storing underground. 

For examples, see a summary of the 12 projects DeSmog analysed here.

From Oilman’s Dream to “Climate Solution”

The process of using carbon dioxide to produce more oil, now known industry-wide as enhanced oil recovery, or “CO2-EOR”, was born in the oil fields of Texas in the early 1970s. 

Petroleum engineers from leading oil producers such as Shell, Exxon, and Chevron had discovered that injecting CO2 at high pressure into “mature” or “previously developed” oil reservoirs helped increase the flow of otherwise stubborn hydrocarbons — in essence squeezing more volume out of aging wells. 

Though initial tests found that each ton of injected CO2 could push out an additional two or more barrels of oil, the lack of readily available CO2 made the technique expensive. That changed when companies began siphoning off CO2 emitted from several Texas gas processing plants, and piping it to an oil field to boost productivity. To ensure a steady supply, industry agents scoured the region and purchased the rights to mine naturally occurring CO2 deposits in Colorado, New Mexico, and Arizona — eventually building hundreds of miles of dedicated pipelines to transport the gas to oil-field injection points. 

By the late 1970s, amid growing concerns over what was then known as the “greenhouse effect,” industry executives began to propose that capturing CO2 and burying it underground could allow the world to continue generating power from fossil fuels far into the future. In 1992, the Paris-based International Energy Agency (IEA) and other energy organizations established a research program to support developers seeking to prove CCS at scale. 

By the time of the first U.N. climate conferences in the mid-1990s, the oil industry had begun marketing carbon capture as a technological “silver bullet” capable of making coal “clean,” and rendering oil and gas as “low carbon” — a strategy employed by oil majors to this day.

However, capturing CO2 is not the same as avoiding its climate impacts. If that CO2 is then used to directly produce more oil, or if CCS “abatement” is used to suggest that additional oil and gas production is climate-friendly — or in some cases both — then those CCS projects are invariably acting as a net harm to the climate, by actually increasing overall CO2 pollution. 

Carbon dioxide runs through pipes at a North Dakota CCS plant. Credit: Buchsbaum Media.
Carbon dioxide runs through pipes at a North Dakota CCS plant. Credit: Buchsbaum Media.

For example, the fossil fuel industry often points to Norway’s pioneering Sleipner CCS facility — which has captured and buried approximately one million tons of CO2 per year under the North Sea since 1996 — as proof that carbon capture works. But that figure does not account for all the additional CO2 that’s emitted when fossil gas produced by the plant is burned by end-users. 

Energy expert Michael Barnard, estimates that even though Sleipner has stored about 23 million tons of CO2 from 1996-2019, burning the gas refined by the plant over that time has released some 581 million tons of CO2 into the atmosphere — or more than 25 times the amount that was sequestered. (For more details on Sleipner, see DeSmog’s review of 12 CCS facilities).

Profit Driver

Now an established technique worldwide, producers generally use CO2-EOR to recover oil from older “depleted” fields, where less sophisticated recovery methods have left up to two-thirds of the original oil behind. If the geology and economics are favorable, using EOR techniques can extend the productive life of developed oil fields for several more decades. 

To put the significance of this approach to the oil industry into perspective, according to the U.S. National Energy Technology Laboratory, of the 600 billion barrels of oil that have been discovered in the U.S., approximately 400 billion are unrecoverable by conventional means. But half of that unrecoverable oil — or 200 billion barrels — could be squeezed to the surface through CO2-EOR.

Today, the oil industry pumps some 80 million tonnes of CO2 underground each year to extract more oil, much of it in the U.S. — the world’s leading oil and gas producer, and biggest user of CCS-EOR, which drives six percent of the country’s daily output. In some cases, the technique can squeeze up to four or five additional barrels from otherwise declining fields for every ton of injected CO2. Though geology plays a role, one of the main factors inhibiting even greater EOR volume is the lack of cheaply available CO2. 

Despite many EOR projects simply being intended to extend oil production, companies often label them as climate-friendly “carbon capture” facilities since about half the CO2 injected underground remains there, depending on local geological conditions. 

However, climate claims made on the basis of CCS projects also often ignore the fact that much of the CO2 the industry “captures” for EOR purposes is mined from naturally occurring underground deposits, and reburying this gas in an oil field does nothing to reduce the amount of emissions humans are releasing into the atmosphere by burning fossil fuels. 

Government Backing

While costs for proven zero-carbon emitting renewable energy technologies are plummeting, CCS projects have remained dependent on subsidies and tax breaks that often incentivise some of the world’s richest and most polluting companies to capture CO2 to produce more oil. 

Governments worldwide have awarded at least $19 billion in subsidies to CCS projects over the last 20 years, according to data compiled by Oil Change International, a research and advocacy organization. This number includes more than $4 billion in failed projects, including the troubled Kemper Facility, a now-abandoned “clean coal” and EOR scheme. (For details, please see DeSmog’s review of 12 CCS projects).

Carbon capture technology used at a coal mine in 2014. Credit: Peabody Energy, Wikimedia Commons (CC BY-2.0)”>Wikimedia Commons Wikimedia Commons (CC BY-2.0)”>CC BY-2.0
Carbon capture technology used at a coal mine in 2014. Credit: Peabody Energy, Wikimedia Commons (CC BY-2.0)”>Wikimedia Commons Wikimedia Commons (CC BY-2.0)”>CC BY-2.0

By far and away, the United States has extended the most government support for CCS, estimated at $15 billion since 2010. Canada, Australia, and the European Union have also poured billions into the technology. Norway’s state-owned Statoil, now Equinor, was also an early CCS adopter, and the government continues to pour billions into new, more sophisticated projects. Likewise, state-owned companies in China, as well as Brazil’s Petrobras, Saudi Arabia’s Aramco, and the United Arab Emirates’ ADNOC are receiving support to develop and expand their existing CCS operations.  

U.S. Doubles Down

Despite the fact that almost three-quarters of existing CCS projects are used to pump more oil, new climate policies on both sides of the Atlantic are driving more government support. 

In August last year, U.S. President Joe Biden’s Inflation Reduction Act (IRA) – which contained sweeping climate provisions — significantly expanded tax credits for investments in CCS beyond an existing $12 billion in government support. Under the revised “45Q” credits section, companies can now claim $60 per ton of CO2 captured for EOR — up from $35 before the Act was passed — and $85 per ton of CO2 captured for geological storage, up from $50.  

Additionally, the IRA reduces the requirements for eligible CCS projects while locking in a seven-year extension to qualify for the tax credit, meaning that developers have until January 2033 to begin construction. 

The industry-backed Global CCS Institute reckons these tax breaks and other enhancements could increase CCS deployment in the U.S. 13-fold to more than 110 million tonnes per year by 2030.

Since there has been no cap set as to how much the U.S. government can pay through new carbon capture credits, Bloomberg New Energy Finance and Credit Suisse caution these subsidies could balloon to a vast $50 to $100 billion in CCS giveaways over the next decade.

Flurry of Deals

More than 50 new CCS projects were announced within months of the passage of the IRA — spurred on by even more support from the Biden administration.

In July, ExxonMobil, which boasts more CCS experience than any other company, spent over $5 billion to acquire independent oil and gas producer Denbury Resources and its 1,300 miles of CO2 pipeline infrastructure. In projects almost entirely devoted to EOR, Denbury has been injecting over four million tonnes a year of carbon captured from industrial and natural sources into various oil fields in 10 onshore sequestration sites across the Gulf region of the U.S. 

Buying Denbury allows ExxonMobil to not only advance its various carbon capture deals, but also gives it a great potential revenue source as polluting companies increasingly resort to buying carbon credits to meet climate targets. With an expanding CO2 pipeline network already in place, ExxonMobil can now offer itself up as an emissions disposal company and cash in on the associated tax credits. 

Looking ahead, ExxonMobil says that CCS and other “carbon management” schemes could develop into a $4 trillion global market by 2050.

‘Preserve our Industry’

The deal-making continued in August, when the White House and the Emirati government endorsed a new partnership between ADNOC and Texas-based Occidental Petroleum to “supercharge and accelerate decarbonization solutions” in the UAE, the United States, and around the world. Both partners are currently running large-scale carbon capture projects specifically aimed at producing “low carbon” oil. 

One of the technologies the partnership will explore is “direct air capture,” which involves sucking air through giant fans and filtering out CO2 with a chemical-lined filter. The CO2 can then be stored underground or piped to petroleum wells to help extract oil. Bonus funds in Biden’s IRA are now available to prove this experimental technology is viable.

Currently the world’s first large-scale direct air capture plant in Iceland stores about 4,000 tonnes of CO2 a year, about 0.001 percent, of global carbon capture capacity, according to data from the Global CCS Institute. That’s less than four second’s worth of global emissions. However, these modest beginnings have not tempered oil industry enthusiasm for the technique. 

“We believe that our direct capture technology is going to be the technology that helps to preserve our industry over time,” Occidental Petroleum Chief Executive Vicki Hollub told a major fossil fuel conference in Houston in March. The company is already the U.S. leader in carbon capture operations, and Hollub says new advances could serve as a lifeline for the oil industry, extending operations “60, 70, or 80 years in the future,” she noted. 

Direct air capture plants could soon be used to trap CO2 for enhanced oil recovery operations in the US, the UAE and beyond. In 2021, ADNOC announced plans to produce “low carbon” petroleum, and last year Occidental signed its first contract for “net-zero oil”.

European Commission President Ursula von der Leyen requested a Dutch foreign official to examine CCS as a climate solution. Credit: WikiMedia Commons, CC BY-NC-ND 2.0“>WikiMedia Commons
European Commission President Ursula von der Leyen requested a Dutch foreign official to examine CCS as a climate solution. Credit: WikiMedia Commons, CC BY-NC-ND 2.0“>WikiMedia Commons

Europeans Follow Suit

Aggressive support for CCS from the Biden administration has found echoes across the Atlantic. In March, the European Commission proposed that the EU should target 50 million tonnes per year of CO2 capture capacity by 2030, from almost zero today. The target forms part of the draft Net-Zero Industry Act, a key piece of climate legislation aiming to drive the clean energy transition. 

European Commission president Ursula von der Leyen has since instructed Wopke Hoekstra, a former Dutch foreign minister who has worked for Shell, to examine CCS as a climate solution before he takes over as climate commissioner in October.

Against this backdrop of positive policy signals, the oil industry has announced a spate of ambitious carbon capture plans in Europe, a continent with little existing CCS infrastructure outside of Norway – almost all of which plan to store CO2 under the North Sea.

In the UK, the North Sea Transition Authority, which regulates the country’s oil and gas industry, this month awarded 21 licenses to 14 companies to store captured CO2 into blocks for formerly productive oil and gas fields under the seabed. The combined CCS plan aims to store 30 million tonnes of CO2 annually by 2030.

Around the world, hundreds of new carbon “abatement” projects reliant on CCS to clean up fossil-fueled electrical generation, steel and cement output, as well as hydrogen production, are now scheduled to come online by the end of the decade.

This, in turn, has triggered a scramble by companies seeking to enter the rapidly emerging CO2 logistics, handling, shipping and disposal markets.

Despite all this activity, announced global schemes to capture and bury CO2 constitute only a tiny fraction of what would be needed to slow climate change, critics say. Based on the current project pipeline, the International Energy Agency predicts that by 2030, the world’s annual carbon capture capacity from both new construction and retrofits could amount to a total of 205 million tonnes of CO2, only about 0.5 percent of current global energy-related emissions. 

Moreover, the core of the IEA’s Net Zero scenario, as well as similar roadmaps for avoiding the worst impacts of climate change, rests on rapidly accelerating the shift to renewables from fossil fuels, regardless of whether a portion of CO2 emissions are “abated” through capture and storage. 

Aware of the risks of the oil industry presenting CCS as a catch-all climate solution at COP28, some governments are pushing back. In July, ministers from Germany, France, Denmark, the Netherlands and more than a dozen other nations published a joint letter warning that CCS and “abatement technologies must not be used to green-light continued fossil fuel expansion.” Instead, such technologies “must be considered in the context of steps to phase out fossil fuel use, and should be recognised as having a minimal role to play in decarbonization.”

With the Emirati hosts seemingly determined to champion carbon capture, and the oil industry planning to market ever more barrels of “net-zero” oil, the battle over the future of a 50-year-old technology may have only just begun. 

Click here for case studies from a DeSmog review of 12 of the world’s leading CCS projects, and their impact on the climate. 

Original article by Michael Buchsbaum and Edward Donnelly republished from DeSmog.

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