Point-Source CCS Is Commercial, Not Experimental

The §45Q credit for carbon capture utilization and storage has been expanded under the One Big Beautiful Bill Act to up to $180/metric ton of CO₂ for enhanced oil recovery destinations. This is a meaningful uplift from prior levels and materially improves project-level economics for point-source CCS applications tied to industrial emitters near EOR offtake. The caveat: EOR-destination projects attract criticism on additionality grounds, and the credit structure still disadvantages permanent geological storage relative to utilization pathways. That said, $180/t crosses the threshold where several hard-to-abate industrial point-source projects (cement, steel, refinery off-gas) become financeable on a standalone basis without concessional debt. Worth watching whether this catalyzes a wave of new CCUS project finance structures, particularly at sites where CO₂ transport infrastructure already exists. Source