Applying the Midstream Model to Carbon Capture Projects
Beyond tax credits, the energy industry is increasingly adopting carbon-management strategies amid pressures from stakeholders.
January 14, 2022 at 06:52 PM
6 minute read
EnergyWith bipartisan support and recent high-profile proofs of concept, carbon capture and sequestration (CCS) is increasingly on the forefront of the energy innovation conversation. Opportunities to build commercial relationships between entities emitting and capturing carbon dioxide (CO2) are growing in the "point-source" capture space, wherein CCS facilities are placed directly on-site, connected to industrial facilities. While these CCS transactions involve new technologies, the commercial structure is not very different from familiar midstream legal structures. This article discusses some significant similarities and differences between CCS projects and traditional midstream projects.
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