June 28, 2019
By Benjamin Doggett
USEA Summer 2019 Intern
Jason Selch, CEO of Enchant Energy LLC told stakeholders at a U.S. Energy Association briefing Thursday retrofitting the San Juan Generating Station with carbon capture sequestration (CCS) technology would cost the company $1.2 billion, easily offset by the celebrated 45Q tax credit which would give the company back $2.5 billion.
45Q refers to Section 45Q of the Internal Revenue Code, the carbon sequestration credit, which gives companies a $35 tax credit per ton of CO2 captured for enhanced oil recovery (EOR), and $50 per ton of CO2 captured for straight sequestration in a geologic formation.
In his presentation, Selch said the San Juan plant would capture 90% of the carbon emissions it produces–6 million metric tons annually–and is projected to become the lowest CO2 emitting fossil-fueled power plant in the Western U.S.