GAO - Of 11 Taxpayer-Funded Carbon Capture Projects Since 2009, 3 Ever Came Online, 2 Still Are

[hatrack]

The US Government Accountability Office (GAO) said only three out of 11 carbon capture and storage projects funded by the Department of Energy (DoE) since 2009 were ever operational – and only two still are. GAO released a report evaluating the success of the DoE’s funding and what money may have been wasted. The DoE invested about $1.1 billion into the projects as part of three initiatives to demonstrate and commercialise carbon capture technology.

Coal CCS projects were particularly less successful than CCS projects at industrial plants. Out of eight coal CCS projects funded, only one became operational, until it terminated operations in 2020 due to low oil prices. Two out of three of the industrial CCS projects became and remain operational.

The report found that the coal projects were unsuccessful due to the facilities being in competition with natural gas, uncertainty in the future of carbon markets and tax incentives, and high expected project costs.

EDIT

The DoE ended up spending $472 million on the early phases of four of the ultimately uncompleted coal projects, almost $300 million more than initially planned. The Department has a process of holding funding until certain phases and technical progress milestones are completed, but senior leadership reportedly allowed the funding to be spent before milestones were reached.

EDIT

https://www.upstreamonline.com/energy-transition/us-investigative-office-concerned-over-funding-of-ccs-projects/2-1-1135714

[quaint]

1. "A billion here, a billion there, and pretty soon you're talking real money."

...but senior leadership reportedly allowed the funding to be spent before milestones were reached.