New Tracking Systems Needed for CCS Emissions Amid Growing Generation Projects

New carbon capture and storage (CCS) generation projects are emerging, notably the Broadwing project in Decatur, Illinois, and others in Baytown, Texas, and southeastern Wyoming. CCS power plants are seen as a viable option for decarbonization, supported by federal incentives like the 45Q tax credit.

However, significant costs associated with CCS mean that regulatory mandates are necessary to enhance the value of low emissions output. Clean energy buyers willing to pay a premium for low-carbon electricity could drive the adoption of CCS, but they require mechanisms to claim the low-carbon attributes.

A proposed energy attribute certificate (EAC) could be developed for CCS generation, which would not necessarily convey zero-emissions status. This new attribute could facilitate greenhouse gas accounting and allow clean energy buyers to engage with low-carbon electricity, potentially aiding the economic viability of CCS projects and contributing to the decarbonization of the electric grid.