Overview
S&P Global quoted Hunter Johnston in an article titled “Carbon Capture Credits Could Create Tax Equity Market That Spurs New Projects.” The article, published March 7, explains why the extension of federal tax credits for carbon capture, use and storage could open up a tax equity market that might help spur the development of projects in the United States.
Johnston, who has been involved in a project to capture carbon dioxide from synthetic gas in Louisiana, says the capital expense involved in building carbon capture projects could leave developers with too little taxable income to value the credits. In order to make sure the benefit does not go to waste, Johnston believes that tax equity partnerships, similar to those employed in the renewable energy sector, could develop around carbon capture projects. "The viability of that tax equity market and the structures that have been employed for renewable projects is the first place where any developer for a carbon capture project would look," he says.
The full article can be read at S&P Global.