ESG, Recycling, & Climate | Monthly Thematic Piece

Carbon Capture Land Grab – Lots Being Spent, Not Much Drilled
October 5, 2022
Products Mentioned:
Hydrogen, Carbon Dioxide, Ethylene, Methanol, Polyethylene, Polypropylene, Oil, Natural Gas, Carbon, Copper, SAF, LNG
Companies Mentioned:
Talos Energy, Gulf Coast Sequestration, Huntsman, Elogen, EnVen, Denbury, Summit Carbon Solutions, Navigator, British Steel, Bp, FREYR Battery, PureCycle Technologies, Issaquena Green Power
Subjects Covered:
Recycling, Renewables, Carbon Capture, Emissions, New Energy, The Hydrogen Economy, ESG Investing, Climate Litigation, Clean Fuels

C-MACC Weekly “CRETER” (Climate etc.)

Carbon Capture Land Grab – Lots Being Spent, Not Much Drilled

  • The frequency of announced acreage lock-ups, especially on the U.S. Gulf Coast, makes us question whether there will eventually be a surplus of CCS wells.
  • Today the land grab is not being matched by Class 6 permit applications, suggesting that lots of seismic work is needed and all partnerships are not set.
  • Given the higher value of 45Q, first mover advantage may be valuable for anyone with an easier route to capture – i.e., those with purer CO2 (like LNG).
  • The IRA has created some further global incentive inconsistencies with the U.S. in the lead for the first time in some instances – there are competitive implications.
  • Otherwise, we revisit recycling challenges, slow solar roll-outs, the challenges of expensive metals, more dependence on China, and a brave Peter Huntsman.

See PDF below for all charts, tables and diagrams

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