ab Global Research|27 September 2021
What is CCUS and Which Sectors will Play a Role?
In the following report we attempt to address the most Frequently Asked Questions
(FAQs) around Carbon Capture Utilization and Storage (CCUS). Further, we attempt to
touch upon the emerging growth opportunities for multiple industries that have the
potential to benefit from the CCUS trend.
The Linchpin for Achieving Net Zero?
We see CCUS as a major linchpin in helping the U.S. and Canada achieve there Net Zero
emission targets. There have been multiple companies formed and technologies put in
place to reduce or eliminate the use of Carbon ie batteries for automobiles. However,
multiple heavy industries do not have a cost effective solution available today and we see
CCUS (as well CCUS paired with Hydrogen) as a bridge solution to achieving Net Zero
targets sooner. For example, Cement production could materially lower emissions
through Carbon Capture and then sequester emissions through a pipeline network.
A Number of CCUS Proposals in Legislation
On carbon capture utilization and storage (CCUS), the $1tn bipartisan infrastructure bill
that recently passed the Senate (but not yet in the House) added funding for the EPA to
approve Class VI permits more quickly. As we highlight in question 5 below, there have
only been two Class VI well permits issued, both of which took several years. However,
with additional resources, the hope is that the EPA can approve these in ~18 months,
allowing carbon storage projects to get started and become operational sooner. Further,
there are a number of proposals to increase the 45Q credit, extend the expiration date or
start date of construction, as well as including a direct pay option. (See the summary
table in Question 2.) Given the construction jobs that could come with CCUS projects
and the level of interest shown by the energy industry in pursuing them, CCUS subsidies
generally enjoy bipartisan support, which in our v
瑞银-美股能源行业-管道运输：碳捕获利用与储存常见问题-2021.9.27-27页.pdf