Tax credits in the USD430bn U.S. climate and tax bill set to be signed into law this week will kickstart carbon sequestration projects, say oil and gas proponents, offsetting startup costs for some of the anti-pollution initiatives. Carbon capture and storage hubs that take gases from chemical, power and gas producers and oil refineries have become the energy industry's preferred way to combat climate warming. But large-scale development has snagged over costs and lack of guaranteed revenue. The Biden administration's Inflation Reduction Act, which was approved by lawmakers last week, provides a tax credit of up to USD85 per ton for burying carbon dioxide (CO2) produced by industrial activity, and up to USD180 per ton for pulling CO2 from the air.

Source: Reuters