C-MACC Weekly Sustainability and Energy Transition Report
Carbon Use – Some Near-Term Niche Opportunities But Values Are Falling
- 1st Topic of the Week: Carbon Use – The timing of Celanese’s announcement of a carbon use operation in Texas, on the heels of the Louisiana primacy ruling for CCS, reminds us that there are carbon use opportunities as well as carbon sequestration. Today they are very situational, but profitability depends on pricing, which is falling.
- 2nd Topic of the Week: China – We note a wave of new data confirming how fast China is moving in clean energy, a topic we have covered at length. The speed will address national energy security, but will also drive a widening competitive edge, allowing China to gain share quickly, at least outside Europe and the US.
- Otherwise – We look at renewable plastic challenges and the hurdles faced with new technology, nuclear and another China lead, recovering profitability in the wind sector – possibly, and more on metals.
Exhibit 1: Many traded carbon prices have been falling during 2023 making the value of some of the capture options less clear – the same is not true for the US 45Q credit, which is why the activity level in the US remains high.
Source: Bloomberg, January 2024