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Mohit Kaul
Mohit Kaul
Top Contributor

CCS tax credit transfer: CapturePoint sells Section 45Q tax credits in deal valued at $105mn

๐ŸŒ Operating since April 2023, the Arkalon CCS facility in Kansas, US, captures 250,000 metric tons of CO2 annually for 12 years from nearby bio-ethanol production.

๐Ÿ›ข๏ธ Captured CO2 is used in Enhanced Oil Recovery (EOR) operations across over 75 active CO2 injection wells and later stored.

๐Ÿ’ก According to the latest IRS guidance, Section 45Q credit of $35/ton is available for CO2 captured using CCS processes on or after Febโ€™18 and utilized for EOR, thereby valuing the entire deal at $105mn.

๐Ÿ”— Previously, CapturePoint signed a similar 45Q tax credit transfer deal for CO2 captured from a nitrogen fertilizer facility in Coffeyville, Kansas in Janโ€™23.

Access granular data and analytics on tax credit transfer agreements with the Enerdatics Energy Transition Finance database โ€“ the most comprehensive source of research and intelligence on renewable energy transactions,ย globally.
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