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Why feds are spending $2.5 billion on carbon capture

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Jennifer Granholm is Secretary of Energy and answers media questions, during the White House press briefing, Washington, U.S.A, November 23, 2021.

Evelyn Hockstein | Reuters

The U.S. Department of Energy announced on Thursday it was taking its first steps to disburse more than $2.3 billion for carbon capture technology included in Biden’s Bipartisan Infrastructure Law, which the president signed in NovemberFor carbon capture technology.

Carbon dioxide is a byproduct of burning fossil fuels. It is a major cause of human-caused climate change. trending steadily higher for the last 60 years.

Carbon capture technology uses carbon dioxide to reduce emissions at source. It is still an emerging industry, so critics argue that the best use of resources would be to expand clean energy infrastructures.

Jennifer Granholm, Energy Secretary believes there is room for both.

We want to ensure that our energy sources are clean and low in carbon. All of this is happening. Granholm explained that she can still walk and chew gum during a Thursday video interview. She used the same metaphorAt a conference in January, I described the paradox between green energy policy and asking for more production from oil companies to offset rising pump prices.

Granholm is aware that there are a lot of people skeptical about carbon capture technology. It’s used primarily by polluting industry to defer the work required to reduce emissions, according critics.

“There’s criticism that something like this — carbon capture and sequestration — merely prolongs assets that the fossil [fuel]Granholm explained that the industry would have to use it.” I will be clear: Any effort we make to reduce carbon emissions is good.

She said that carbon capture technology will play a key role in compensating for difficult-to-decarbonize areas of the economy like the heavy industry, steel production, and cement.

Additionally, she stated that fossil fuels would be part of the global energy infrastructure in the future.

We have set a target of zero net emissions by 2050. Granholm stated that the IPCC had declared fossil fuels will be available during the transition. We need to invest now in these technologies.

The carbon capture technology is still in very early stages and it remains expensive.

The Department of Energy aims to help bring down the costAs part of the Carbon Negative Shot (or Earthshot), it will also include carbon removal technologies. Earthshot’s goal is to eliminate gigatons carbon dioxide from our atmosphere, and to store the gas for $100 per tonne by 2050.

According to her, the benefit of becoming energy secretary means that she can see how 17 national laboratories work on their projects. It makes me a great optimist for the future because technology will ultimately be our friend when solving this huge problem.

To make carbon capture technology truly scale and grow, however, some investors believeThere must be a carbon price.

One of the best financial incentives that the United States can offer is an a tax credit called 45QThis offers up to $35 per ton of carbon dioxide or carbon monooxide when stored in enhanced oil recovery projects. It also allows for as high as $50 per ton if the gases are stored in geologic formations that are not part of EOP programs.

Granholm has for now decided to leave it up to the private sector in order to create this market.

America is a country that has allowed free markets to determine these issues. But other countries with their state-owned businesses and subsidies have joined forces or said they will take full control of the government. China is doing the same thing. This is what countries around the world do. She said that America doesn’t have such a practice.

“What we do, however is create public-private partnerships and invest in early stage technology to reduce costs by scaling.”

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