Carbon Capture Takes Center Stage: Insights from the Clean Techies Podcast

The Clean Techies podcast recently featured an enlightening conversation with Todd Bush, a carbon capture expert who tracks project development in this growing sector. After a career supporting oil and gas companies with decarbonization efforts and founding several successful companies, Todd now runs Decarbonfuse, a daily newsletter tracking deal activity in the carbon capture space.

Throughout the podcast, Todd shared valuable insights into the current state of carbon capture technology, investment trends, and the future outlook for this crucial climate solution. His hands-on experience provided listeners with an insider's perspective on what's working and what challenges remain.

The First Wave of Carbon Capture Adoption

Todd highlighted that certain industries are leading the charge in implementing carbon capture technologies. As he explained:

For the first wave we're going to see mostly ethanol and natural gas companies pursuing projects implementing them and actually getting to operations [...] they have a premium product and they have high concentration CO2 coming from their facilities so that means low capture costs.

This makes perfect sense - companies that can capture CO2 more affordably while simultaneously receiving premium pricing for their low-carbon products have a compelling economic case for early adoption. Ethanol producers, in particular, benefit from reduced carbon intensity scores that allow them to command higher prices in markets like California.

>> In Other News: Ron Cardwell Appointed President, GenCell Inc. to Bolster Company's Primary Focus on U.S. Market

The Economics of Carbon Capture

When discussing the financial viability of carbon capture projects, Todd provided specific numbers that help contextualize the business case:

From a capture cost perspective you probably need to be below I'll say below $40 a ton on the capture side and then that gives you essentially 20 to 30 to work with uh on a dollar per ton from the storage.

These economics explain why projects with nearby storage capabilities are more likely to succeed. When capture facilities can sequester carbon within a short distance, the transportation costs remain manageable, making the overall project more financially attractive to investors.

America's Carbon Storage Potential

One fascinating aspect of the discussion centered on where captured carbon can be stored in the United States. Todd noted that certain regions have significantly more potential than others:

The majority of the sequestration and storage potential in the US is in the Gulf Coast and so you have different pockets around the United States and even Canada where you can store CO2 but the majority is in Texas and Louisiana and even offshore.

This geographic concentration helps explain why Houston and the Gulf Coast region have become hubs for carbon capture innovation and project development. The natural geological advantages, combined with existing energy infrastructure and expertise, create ideal conditions for this growing industry.

Preferred Carbon Storage Solutions

When it comes to storing captured carbon, developers are making strategic choices about the best geological formations to use:

On the CO2 storage that project developers are looking at saline aquifers really because they don't want to deal with the kind of the remediation of any old assets or old wells that are nearby.

This preference for saline aquifers over depleted oil and gas fields highlights how project developers are prioritizing simplicity and risk reduction in their operations. By avoiding locations with existing infrastructure that might require remediation, they can focus on their core mission of carbon sequestration.

Financial Drivers for CCUS

Perhaps most importantly, Todd clarified what's ultimately driving investment in carbon capture technologies:

It is the tax credits that will drive the majority of the project if you have either ammonia or ethanol then the low-carbon premiums will drive it and the premiums will kick in and actually you'll see obviously a base layer of the tax credits but the premiums help support and really make it financeable.

This dual incentive structure - combining government tax credits with market premiums for low-carbon products - creates the financial foundation needed to attract investment. For ethanol, ammonia, and natural gas producers, low-carbon premium pricing along with tax credits make the project economic.

Looking Ahead

The podcast highlighted both challenges and opportunities in the carbon capture landscape. While financing remains difficult for many projects and community acceptance can be a hurdle, the industry is showing signs of maturity. Projects are advancing through development stages. For example, compression equipment is being delivered to ethanol facilities, Class VI wells are moving through the regulatory process, and CO2 pipelines are being permitted. As more projects move to operation, companies are recognizing the potential of this technology to help meet their decarbonization goals.

For listeners interested in climate solutions, the conversation offered a grounded view of carbon capture's role in addressing emissions - not as a silver bullet, but as an important and increasingly viable tool, especially for industries where other decarbonization strategies may be limited.

As companies continue to innovate and project developers learn from early experiences, we can expect carbon capture to play a growing role in our climate response toolkit, particularly in regions like the Gulf Coast and Midwest where natural advantages make implementation more practical and cost-effective.