Alaska Paves Way For Carbon Capture And Storage

Alaska Governor Introduces CO2 Storage Bills To Attract “Billions” - Carbon Herald
Credit: Hyotographics/Shutterstock

Earlier this week the Alaska House of Representatives passed a bill that provides a framework for companies to capture carbon and develope infrastructure for its storage in underground formations.

House Bill 50 won with a 32-8 vote and will now move on to the state Senate for a review. The bill was introduced in January 2023 by Governor Dunleavy and aimed at taking advantage of the state’s 50 gigatons of reported storage capacity.

When introducing the bill Gov. Dunleavy said: “In Alaska, we are blessed with the resources of today, but we’re also blessed with the resources of tomorrow,” said Governor Dunleavy. “With support from the Legislature for our carbon management bill package, we’ll change the conversation about new revenue. We’ve been told by some that we can generate revenue in the billions over 20 years just from our forest lands.”

But according to a report in the Alaska Beacon, the minimum revenue requirements were removed from the draft, leaving some to question its positive impact for the bottom line of the state. An ammendment that required 4% royalty for injecting CO2 – and providing a quantifiable level of revenue – was voted down.

Regardless, representatives from both sides of the aisle saw the potential of HB 50. Rep. Carpenter, R-Nikiski said “Our economic engine is at stake. It is a fact … the financiers are requiring you, as a business, to have a plan for reducing your carbon footprint. You can disagree with whether that’s smart or wise or not, but the simple fact is that financiers are requiring it.”

Several days after the vote the Biden administration banned drilling for oil in 13 million acres of Alaska’s oil reserve, adding more pressure to the energy industry in the state and its existing revenue streams.

An additional source of revenue from carbon capture could be the utilization of the gas. CO2 can be an ingredient in aviation fuel. Alaska Airlines has been partnering with carbon transformation company Twelve and Microsoft to collaborate on facilitating the market for sustainable aviation fuel (SAF), including fuels from recaptured CO2 and renewable energy.

Read more: Twelve And Alaska Airlines Announce Collaboration With Microsoft On Sustainable Aviation Fuel

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