MONTANA – Today Governor Bullock and Wyoming Governor Matt Mead joined colleagues and officials from twelve other states to release a report highlighting opportunities for increasing the ability to capture carbon dioxide for use in enhanced oil recovery (CO2-EOR) with geologic storage.
“Capture of CO2 from power plants for use in enhanced oil recovery can provide economic, environmental and national security benefits long into the future,” said Governor Bullock. “The report Governor Mead and I are releasing today will help inform policy makers and the business community how we can shape our energy future by design, not happenstance.”
The report— Putting the Puzzle Together: State & Federal Policy Drivers for Growing America’s Carbon Capture & CO2-EOR Industry (http://www.betterenergy.org/EORpolicy)—summarizes the existing policy landscape and market factors impacting carbon capture at existing industrial and energy facilities. The recommendations include a targeted package of federal incentives for CO2-EOR:
•Improving and expanding an existing tax credit for storage of captured CO2;
•Deploying a revenue neutral mechanism to stabilize the price paid for CO2—and carbon capture project revenue—by removing volatility and investment risk associated with CO2 prices linked to oil prices; and
•Offering tax-exempt private activity bonds and master limited partnership tax status to provide project financing on better terms.
Montana currently has enhanced oil operations in the Bell Creek Oil Field which uses anthropogenic CO2 from a natural gas processing plant in Wyoming. Bell Creek alone has the potential to produce an additional 40-50 million barrels of incremental oil and sequester millions of tons of CO2. Governor Bullock has been working with the Department of Energy to explore opportunities to capture carbon at the Colstrip power plant.