Carbon capture and storage (CCS) is a key technology for reducing greenhouse gas emissions. CCS works by capturing carbon dioxide (CO2) from industrial emissions sources, transporting it to a secure storage location, and storing it permanently underground.
The Inflation Reduction Act (IRA) of 2022 includes significant tax credits for CCS projects. The IRA increased the 45Q tax credit from $50 to $85 per metric ton of CO2 captured and stored, and it also expanded the credit to cover direct air capture and CO2 utilization projects.
However, to be eligible for the 45Q tax credit, CCS projects must meet certain requirements. One of the most important requirements is that the CO2 must be stored permanently underground. This is because the goal of CCS is to reduce greenhouse gas emissions in the atmosphere, and releasing the CO2 back into the atmosphere would defeat that purpose.
This is where well service companies come in. Well services companies, like IPT Well Solutions, provide a variety of services related to oil and gas wells, including reservoir characterization, geological investigation and CO2 plume simulation, Class VI permitting, well drilling, completion, monitoring, and plugging and abandonment. Well services companies also have experience with CO2 injection and monitoring, which is the process of injecting CO2 into underground geological formations for storage and monitoring the CO2 plume to insure it is staying in the designed formation.
These companies play a vital role in CCS projects by helping to ensure that the CO2 is stored permanently underground in the designated formation. This can be done by reservoir modeling and geological investigation, designing and drilling CO2 injection wells, monitoring the CO2 storage sites, and plugging and abandoning the wells at the end of their life.
If you are considering developing a CCS project, it is important to work with a well-service company that has experience with CO2 injection. This will help to ensure that your project meets the requirements of the 45Q tax credit, and that the CO2 is stored permanently underground.
Here are some specific examples of how IPT Well Solutions can support CCS projects:
- Well permitting: Obtain the necessary permits from government agencies. This is an important step in ensuring that the CCS project can be completed on time and within budget. This includes completing a reservoir simulation plume time-lapse, designing and completing a stratigraphic well and additional items for a Class VI permit.
- Well design and drilling: Design and drill CO2 injection wells to ensure that the CO2 is injected into the appropriate geological formation and that the wells are properly sealed to prevent leakage.
- CO2 injection monitoring: Monitor CO2 injection sites to ensure that the CO2 is being stored safely and that there is no leakage. This can be done using a variety of methods, such as pressure monitoring, seismic monitoring, and geochemical monitoring.
- Well plugging and abandonment: Plug and abandon CO2 injection wells at the end of their life to ensure that the CO2 remains permanently stored underground.
By working with a credible well services company, CCS developers can ensure that their projects meet the requirements of the 45Q tax credit, and that the CO2 is stored permanently underground.