
In the quest to decarbonize their operations, a growing number of oil, gas and chemical facilities, including ethanol and ammonia processors, are seeking ways to capture and compress the carbon dioxide (CO2) emissions they generate for storage underground. The cost of these projects can be partially offset by tax credits authorized through the Inflation Reduction Act. Carbon capture, compression and storage equipment placed into service between now and Jan. 1, 2033, is eligible for tax credits of $60 to $85 per metric ton of captured CO2 for a period of up to 12 years, as detailed in Section 45Q of the U.S. tax code.
Of the many challenges involved in integrating a carbon capture process into an existing facility, one worthy of early attention is its impact on the supply and utilization of electric power. The motors needed to drive the compressors involved in carbon capture might outsize any currently operating at an industrial processing facility considering carbon capture. Compressors consume as much as 85% of the power used for carbon capture. On these projects, electrical infrastructure enhancements, including utility upgrades, could represent 20% to 25% of the overall cost.
Due to the remote locations of many heavy industrial operations, most carbon capture facilities are integrated with smaller, rural utilities that might not be equipped to meet the increased demand associated with carbon capture. By engaging these utilities early to identify necessary upgrades and seeking their input on key design elements — including voltage ratings, motor type and starting scheme — it is possible to identify ways to mitigate the risks associated with the added power demands.
In some cases, the high cost of utility upgrades could make a project financially unfeasible. The sooner the utility is engaged, the faster project feasibility becomes clear, enabling a firm to make a go/no-go decision before expending significant time and money on engineering. On projects that move forward, early engagement can beneficially impact the project’s scope, cost, schedule and operating performance.