SLB and Aker Capture JV Awarded FEED Contract for Carbon Removal

IRS Guidance on Section 45Q - CO2 Utilization Lifecycle Analysis Requirements

The IRS released Notice 2024-60 on July 24th providing guidance on claiming the Section 45Q credit for CO2 utilization. Key points include:

• Taxpayers must submit a Lifecycle Analysis (LCA) Report to the IRS and DOE for review before claiming the credit
• LCA Reports must follow ISO standards and NETL guidance (see below)
• Reports require independent third-party verificationIRS will approve or deny LCAs within ~4 months of receiving a complete submission
• Approved LCAs are generally valid for 3 tax yearsMaterial changes require resubmission and approval
• Detailed procedures provided for submissions, reviews, and reapprovals

According to the IRS guidance, CO2 utilization means:

• the fixation of such qualified carbon oxide through photosynthesis or chemosyntesis
• the chemical converson to a material or chemical compound in which it is stored
• the use of CO2 for any other commercial market (except for oil & gas recovery)   The guidance aims to clarify the process for claiming the 45Q credit and ensure proper quantification of greenhouse gas emissions reductions. Taxpayers utilizing carbon oxide should review the full notice for important details on compliance. Read the guidance document.

DOE NETL Lifecycle Analysis Toolkit

The Department of Energy's NETL division provided 45Q LCA guidance and tools to comply with the IRS's guidelines. This includes openLCA results, spreadsheets, and templates for supporting LCA work.

NETL will be releasing additional resources that can be leveraged for completing the 45Q LCA requirement in the coming months. These resources include example LCAs, standardized comparison product system (CPS) life cycle inventory data for carbon oxide capture from ammonia and ethanol facilities, and expanded FAQs based on public feedback.

Source: DOE NETL

Inside this Issue

🌱 SLB and Aker Carbon Capture Joint Venture Awarded FEED Contract by CO280 for Large-scale Carbon Removal Project
🔋 Fidelis Applauds Agreement to Build ARCH2 Hydrogen Hub
♻️ Microsoft Signs Carbon Removal Deal in California
💰 Cleantech Startup Graphyte Raises $30 Million to Scale Carbon Removal Solution
🏔️ Partnership Formed to Develop Appalachian Regional Clean Hydrogen Hub (ARCH2)