Carbon Capture and Storage (CCS)
Technologies that capture CO2 emissions from power plants or industrial facilities before they reach the atmosphere, then transport and store the CO2 permanently underground in geological formations.
Why It Matters
CCS could allow continued use of some fossil fuels while reducing emissions, or it could prove too expensive compared to renewables. The debate is highly relevant to energy policy and natural gas investment decisions.
Related Topics
Related Terms
45Q Tax Credit
A federal tax credit for capturing and permanently sequestering CO2. The IRA increased the credit to $85/ton for geological storage and $180/ton for direct air capture. Available for projects that capture specified minimum amounts annually.
Direct Air Capture (DAC)
Technology that captures CO2 directly from ambient air (as opposed to from a smokestack). DAC requires significant energy and currently costs $400-$1,000+ per ton of CO2 removed, but costs are expected to decline with scale.