How can the biggest source of renewable energy in the US also fulfil its carbon reMOVAL POTENTIAL?

Bioenergy with carbon capture and storage (#BECCS) has a promising role to play in achieving #netzero, particularly for hard-to-decarbonise sectors. BECCS development is still in its infancy in the US, however, because it lacks a holistic policy framework to guide BECCS development to scale.

The EFI Foundation’s recent report, “Taking Root: A Policy Blueprint for Responsible BECCS Development in the United States” highlights the important role policy plays in shaping the development of the carbon dioxide removal (#CDR) landscape. Here are the key points:

What is the policy landscape for BECCS in the US?

🌿 Despite #bioenergy being the largest single source of renewable energy in the US, BECCS deployment is in its infancy. There are just 6 operational plants (out of 17 globally) - together only capturing 2Mt of CO2 per year.

💵 BECCS has only received $500,000 in dedicated spending and only through the authorization of annual appropriations.

📜 While the Inflation Reduction Act (#IRA) 2022 led to increases in the #45Q tax credit, the current estimated cost for BECCS facilities (other than ethanol) is above the credit amount for which power producing and industrial facilities are eligible.

🇺🇸The push for federally funded acquisition of CDR, such as those proposed by the recent Carbon Removal and Emissions Storage Technologies (#CREST) Act 2023 and the Carbon Dioxide Removal Leadership Act (#CDRLA) - will also incentivize BECCS.

How can we accelerate responsible BECCS?

🎯The US can expand BECCS through specific national policy goals. The report suggests a target for BECCS of at least 500 Mt CDR, representing a contribution of at least 24% of the estimated removals needed to reach net-zero by 2050.

🌾Federal financial incentives, tax credits, and CDR purchasing should be made available and sufficient to encourage BECCS across a variety of feedstock and energy types.

🧠There is much potential for innovation, with BECCS currently lacking coverage where R&D programmes are fragmented across different federal Departments.

Overall, BECCS represents an attractive CDR approach in the US but policy development will be necessary to get it to scale.

👏Thanks to the EFI Foundation for their work on this important subject. Read the full report here.