The Corporation's technology poised to support the US objectives of reducing CO2 emissions through its capture, sequestration and/or beneficial use
QUEBEC CITY, Feb. 21, 2018 /CNW Telbec/ - CO2 Solutions Inc. (or the "Corporation"), leader in the field of enzyme-enabled carbon capture technology, today responded to the adoption, on February 9, 2018, of the 45Q tax credit under the 2018 Bipartisan Budget Bill in the United States (US).
This approval sees the existing carbon tax credit in the US increase as follows:
- from the present $10/tonne to $35/tonne in 2027 for CO2 captured and utilized in Enhanced Oil Recovery ("EOR") or other end-use applications, and;
- from the present $20/tonne to $50/tonne in 2027 for CO2 captured and geologically sequestered.
Another major change to the 45Q credit is that it is no longer capped, whereas it previously limited the amount of CO2 captured to 75 million tonnes. The tax credits will be adjusted for inflation over time and are expected to increase linearly between the 2017 and the 2027 rates.
"The 45Q tax credit adopted as part of the US Budget Bill is an exciting development for the carbon capture, utilization and sequestration (CCUS) industry," stated Evan Price, President and Chief Executive Officer of CO2 Solutions. "The amount of the tax credit will be a powerful incentive to implement CCUS projects in the US and CO2 Solutions is very well positioned with its low-cost and environmentally friendly capture technology to contribute in this respect. This tax credit serves to remind us that, while individual countries may adopt different policies to reduce emissions, these all point to the same final goal and carbon capture is recognized as an essential approach to reach it."
By offering a carbon capture technology that is already at commercial scale, CO2 Solutions is well positioned to respond to opportunities that may arise from this tax credit. In addition, through the Valorisation Carbone Québec (VCQ) project, the Corporation is able to demonstrate its technology at large scale on a continuous basis alongside the CO2 utilization technologies of its partners. This industry-leading platform (VCQ) is attracting interest from industrial partners from around the world who are willing to implement carbon capture and utilization. The commissioning of the Corporation's first commercial carbon capture unit at the Resolute Forest Product's Saint-Félicien, QC pulp mill at a 30-tonne per day scale later in 2018 will provide a second facility that can be used to demonstrate the performance of CO2 Solutions' technology.
About CO2 Solutions Inc.
CO2 Solutions is an innovator in the field of enzyme-enabled carbon capture and has been actively working to develop and commercialize the technology for stationary sources of carbon pollution. CO2 Solutions' technology lowers the cost barrier to Carbon Capture, Utilization and Sequestration (CCUS), positioning it as a viable CO2 mitigation tool, as well as enabling industry to derive profitable new products from these emissions. CO2 Solutions has built an extensive patent portfolio covering the use of carbonic anhydrase, or analogues thereof, for the efficient post-combustion capture of carbon dioxide with low‐energy aqueous solvents. Further information can be found at www.co2solutions.com.
CO2 Solutions Forward-looking Statements
Certain statements in this news release may be forward-looking. These statements relate to future events or CO2 Solutions' future economic performance and reflect the current assumptions and expectations of management. Certain unknown factors may affect the events, economic performance and results of operation described herein. CO2 Solutions undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required under applicable law.
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SOURCE CO2 Solutions Inc.
For further information: Investor Relations and Media Contact: CO2 Solutions, Jérémie Lavoie, 418-842-3456, ext. 223, [email protected], www.co2solutions.com