Louisiana’s Embrace of Carbon Capture Potentials    

Carbon capture, utilization, and storage (CCUS) is a set of technologies and practices that can reduce carbon dioxide (CO₂) emissions from industrial processes and power generation. Unlike direct air capture (DAC) which removes CO₂ from ambient air, CCUS captures CO₂ from combustion point sources.   

Captured CO₂ can be utilized for many purposes, including its injection into previously depleted oil or natural gas wells for further fuel extraction. The CO₂ can also be stored underground in drained oil and gas reservoirs or in deep saline formations.  

CCUS is just one approach for reducing greenhouse gas emissions, especially for industries that have traditionally had heavy CO₂ emissions. It has been strongly promoted as an option for both addressing climate change challenges while supporting economic growth and energy security. Given estimates that CO₂ emissions from fossil fuel combustion and industrial processes contribute much of the total greenhouse gas emissions, CCUS has received enthusiastic responses from many in the private and public sector. 

While CCUS technology has potentially huge benefits, it also comes with large capital and other costs, has significant energy demands, and requires safe and appropriate CO₂ storage sites. Climate scientists stress that CCUS should be viewed as a complementary approach alongside many other climate actions. To maximize the potential of CCUS, they claim that more investment will be needed in research, development, and deployment of these technologies.  

The USA and many other countries have been actively investing in CCUS technology. The Biden administration’s Infrastructure Investment and Jobs Act and its Inflation Reduction Act provided opportunities for many billions of dollars in grants, tax credits, and loans to companies for greenhouse gas reduction projects. States like California, Texas and Louisiana seem to be leading the pack in encouraging CCUS projects. Among many CCUS proponents are Senator Bill Cassidy (R) and Governor John Bel Edwards (D). Governor Edwards’ Climate Initiatives Task Force unanimously approved the state’s Climate Action Plan, with industrial decarbonization as an important part of this plan. Many announcements of planned CCSU projects in Texas and Louisiana have occurred in the last two years, especially within industries that have long been criticized for alarming levels of CO₂ emissions.    

Political support for CCUS in Louisiana appears strong based on state legislative action in 2023. All eight bills seeking forms of deterrence or delays for proposed state CCSU projects were defeated, while the one bill supporting CCUS in the state was passed and signed by the governor on June 14. Provisions within the new law sought to address at least a few of the concerns of CCUS critics though. A good slice of revenues from these projects is designated to go to local governments where CCUS sites are to be located, to state government general funds, and to a special fund for additional state mineral and energy regulatory expenses. Those planning injection wells for CO₂ storage must submit an initial environmental analysis, notify impacted local parishes, file quarterly reports, and make immediate disclosures of leakages or problems.   

Most of the carbon capture projects recently planned for Louisiana are to be CCUS ones, but the Tyler (TX) Morning Telegraph and The Advocate (LA) recently profiled Project Cypress, a large Direct Air Capture (DAC) undertaking. Project Cypress will be in Calcasieu Parish, receive over $600 million dollars in funding from the Department of Energy, and is forecasted to create 2300 jobs. It is one of two initial commercial projects that the Biden administration expects will eventually be a national network of DAC sites.            

A recent investigative report claimed that there are about 20 carbon capture storage sites planned for Louisiana. Companies such as Air Products, Strategic Biofuels, Cleco, and Gulf Coast Sequestration have already announced plans that include CO₂ sequestration sites. Many of the proposed or announced CCUS sites are in the parishes along the Mississippi River between Baton Rouge and New Orleans (Cancer Alley), but sites are also being planned for other parishes. 

Opponents of CCUS in Louisiana include some of those living near proposed sequestration sites. Beyond NIMBY (Not in My Backyard) and environmental justice objections, opponents have made other arguments against rapid expansion of CCUS sites in the state. Details concerning these arguments can be found in recent publications and on websites of environmental groups, but a summary of major concerns might include:  

* There has been underperformance and sometimes failure of recent CCUS operations due to high costs, low efficiencies achieved, and the still early development of many CCUS technologies. Expected profits and gas emission reduction levels for future CCUS projects could be much less than anticipated.  

* Transportation of CO₂ from industrial sites to storage wells in Louisiana will require thousands of miles of new or retrofitted pipelines. Only a small set of current companies construct and operate CO₂ pipelines, which are larger and built to withstand the higher pressures of condensed CO₂ versus natural gas pipelines. Pipeline leakages would cause serious environmental damage and reduce CO₂ utilization potentials.  

* There remains skepticism that the LA Department of Natural Resources (DNR) can ensure carbon capture projects will operate safely. The regulatory role for CCUS projects is expected to pass soon from federal EPA approval processes to DNR responsibilities. There have been concerns expressed that regulation of CCUS projects could overburden DNR monitoring and enforcement capabilities.  

Despite these and other CCUS reservations, it appears that the state’s business and political leaders will continue to encourage CCUS projects – unless or until their track record is convincingly proven to be too damaging or costly.