09/09/2021 | Press release | Distributed by Public on 09/09/2021 13:50
BEULAH, N.D. - Senator John Hoeven, a member of the Senate Energy and Natural Resources Committee, today joined company leaders from Basin Electric Power Cooperative and the Dakota Gasification Company (DGC) in announcing a proposed carbon capture, utilization and storage (CCUS) project in development at the Great Plains Synfuels Plant near Beulah. The facility currently captures approximately 2 million tons of the plant's CO2emissions, which are piped to Saskatchewan for use in enhanced oil recovery (EOR). The proposed project will enable the facility to capture up to 3.5 million tons of CO2 per year and will serve as part of the largest coal-based CCUS project utilizing geologic storage, while also being the first CCUS project in the U.S. utilizing both EOR and geologic storage.
The proposed project is made possible due to the legal, tax and regulatory framework that Hoeven has worked to implement, both as governor and now as U.S. Senator, to help crack the code on CCUS. His efforts began in 2008, when he established the North Dakota CO2 Storage Workgroup. Following this, Hoeven:
'The Dakota Gasification Company was already an early leader in CCUS, and this proposed expansion is another milestone in our state's efforts to crack the code on this critical energy technology - the largest coal-based carbon capture project to use geologic storage,' said Hoeven. 'We're able to make progress like this because we've been laying the groundwork for geologic storage of CO2 in North Dakota since 2008. That means not only providing regulatory certainty, but also advancing key incentives at the federal level, including the 45Q tax credit and loan guarantees for project developers.'
Securing the 45Q Tax Credit
The 45Q tax credit provides an important new revenue stream for CCUS projects of up to $50 per ton for CO2 permanently stored, or up to $35 per ton for CO2 stored and used for enhanced oil recovery. After helping pass legislation to reform and expand the 45Q tax credit, Hoeven worked to advance its implementation. His efforts included:
Further Efforts to Crack the Code on CCUS
Moving forward, Hoeven is advancing the following priorities to crack the code on CCUS, which will enable the nation to continue making use of its abundant energy resources, while reducing emissions: