Texas industry asks EPA for state approval of carbon storage projects

Texas oil, gas, and industrial groups asked the new EPA Administrator on Tuesday to expedite Texas' request for the approval of carbon capture and storage project instead of the Federal Government, in order to boost private investment, and unleash capture technology.

The groups, which included the Texas Oil and Gas Association and Texas Association of Manufacturers asked Environmental Protection Agency Chief Lee Zeldin "to expedite and approve" Texas' application for "primacy." The state would be able to store and capture carbon underground, instead of waiting for the EPA to approve such projects.

The EPA said that by reducing the backlog of projects and allowing the states to approve them, it "can give the industry a clear and predictable framework so they can do what they do best: invest in America."

Texas is the fifth state in the country to receive EPA approval for its own CO2 injection permits.

The groups claimed that carbon capture and storage could add up to $1.8billion to the Texas economy, and satisfy the demands of U.S. LNG export facilities. Many of these foreign customers are looking for lower-carbon energy.

Local landowners have expressed concern that the underground storage of CO2 could worsen earthquakes, and blow outs in wells. This is already happening as Texas struggles to manage its wastewater disposal.

The landmark 2022 Inflation Reduction Act of the Biden administration, which addresses climate change, includes billions of dollar of subsidies. This includes a $85 tax credit per metric ton for storing carbon dioxide in geological formations.

Energy experts believe that despite President Donald Trump's pledge to eliminate the IRA, such subsidies are likely to survive because of strong support by Republican lawmakers and states.

Zeldin stated that he supported the technology at his confirmation hearing. (Reporting and Editing by Bernadette B. Baum.)

(source: Reuters)