RELEASE: Carbon Removal: A Game-Changer for Utilities on the Path to Net-Zero
FOR IMMEDIATE RELEASE: September 24, 2024
Carbon Business Council Publishes “Utilities and Carbon Removal: A Gigaton Scale Opportunity”
–First-of-its-kind report shows the integral connections between utilities and carbon removal–
Washington DC — As utility companies navigate reducing carbon emissions and transitioning to clean energy, a first-of-its-kind report explores a key tool on the path to net-zero: carbon dioxide removal (CDR). Today, the Carbon Business Development Council, in collaboration with the Carbon Business Council, released “Utilities and Carbon Removal: A Gigaton Scale Opportunity.” The report highlights how utilities can not only provide essential support for the carbon removal industry to grow but also how removals offer substantial benefits to utilities, making them a smart investment. The report is made possible by support from Breakthrough Energy.
“There’s a gigaton scale opportunity that can happen by utilities and carbon removal companies working more closely together. From the skillset of utilities as project developers to powering carbon removal with clean energy, this alliance delivers a win for utilities, ratepayers, communities, and the climate,” said Ben Rubin, Executive Director of the Carbon Business Council.
The report outlines the many connections between utilities and carbon removal to power the growth of CDR and meet climate targets. Developed with expert input from utility companies, regulators, nonprofits, and Tribal organizations, the report breaks down four primary threads between utilities and CDR.
Utilities represent a more than a $1 trillion market in the U.S. and carbon removal is projected to grow into a trillion dollar market. The report identifies opportunities and considerations for utilities and carbon removal to combine forces, and presents a series of recommendations for reaching climate targets and accelerating carbon removal.
Scientists globally have reached consensus that the world needs to remove and manage gigatons of carbon dioxide from the atmosphere in order to meet the goals of the Paris Agreement. The concept of “twin targets” affirms the need for CDR to work in tandem with the important work of reducing emissions.
Key findings from the report include:
Unlocking the Potential of Utility Assets
Utilities and the CDR industry are beginning a decades-long collaboration, with many utilities possessing extensive infrastructure and land assets that offer natural opportunities for CDR projects, allowing them to integrate these efforts into their investments, land management, and operational budgets. The report outlines pathways for utilities to benefit the environment while also enhancing their bottom line. As utilities deepen engagement in carbon removal, the report shows how these economic and environmental benefits can translate to cost savings for ratepayers.
Utilities can generate revenue while reducing costs in land management and waste disposal, for example during forest thinning. Thinning is a regular land management tool for utilities to mitigate wildfire risk along transmission lines, in which the biomass can provide feedstock opportunities for CDR, such as via terrestrial biomass burial, biochar, or bioenergy with carbon capture and storage.
Leveraging Regulatory Support
The regulated nature of energy utilities offers a powerful foundation for advancing CDR projects. This environment, which has successfully supported solar and energy storage growth, can ensure that CDR initiatives are carefully reviewed and aligned with broader climate goals. Utility and CDR leaders need to leverage regulatory support to drive early investments and establish best practices. Policymakers can adapt successful utility models to scale up CDR, using the regulated planning process to balance economic, environmental, and community impacts, ensuring responsible and effective CDR.
Powering the Growth of Carbon Removal
As CDR scales, some pathways like direct air capture depend on access to low-cost, reliable clean electricity. CDR technologies with higher energy requirements will need to be paired with on-site renewables as an environmental benefit and cost-saving measure. To improve these economics, CDR can be paired with clean energy for off-grid applications.
Co-locating resources with loads reduces overall costs as customers have the potential to avoid transmission and distribution surcharges and other costly tariff requirements associated with utility service. Therefore collaboration with utilities and regulators will be key to securing the necessary power for these projects, and for utilities to accommodate energy growth while working to protect current rates.
Crossing the Energy Transition Finish Line
Utilities are central to the economy, powering essential services and driving significant economic activity. Many utilities have net-zero targets and CDR is among several emerging technologies which may prove effective at addressing “last mile” decarbonization efforts, while working alongside the critical efforts of emissions reductions.
“Utilities and Carbon Removal: A Gigaton Scale Opportunity” is published by the Carbon Business Development Council, in collaboration with the Carbon Business Council, which provided content and editorial assistance. Authors include Nick Pappas and Jon Martindill of NP Energy and Ben Rubin and Isabella Corpora.
The full report can be found here.
###
Carbon Business Council (CO2BC), a member-driven and tech-neutral trade association of companies unified to restore the climate, is the preeminent industry voice for carbon management innovators. Together, the nonprofit coalition represents more than 100 companies and organizations across six continents with more than $16.5 billion dollars in combined assets.
Carbon Business Development Council (CBDC) is focused on reaching gigaton-scale carbon removal responsibly and economically. CBDC helps to educate the general public about carbon removal. CBDC is a sister organization to the Carbon Business Council.
