Summary/Abstract
This Clean Air Task Force report estimates the impact of the 45Q tax incentive on CCS deployment in the U.S. power sector by 2030. The modeling results show that 45Q leads to significant deployment of CCS, capturing and storing approximately 49 million metric tonnes of CO2 annually in 2030. The modeling results also show that the power sector carbon reductions due to 45Q-induced deployment of CCS are additive to those achieved through renewable sources of electricity generation. However, for CCS to reduce CO2 emissions from the U.S. power sector to meet the 2 degree scenario goals, 45Q incentives would need to be accompanied by additional policy actions and incentives to increase the pace at which pipelines and injection sites are permitted, financed, and built. Without targeted policies made to remove bottlenecks and enable more rapid development of CO2 capture, transport and storage infrastructure, the full impact of 45Q may not be realized.