Last week the Trump administration published its spring Unified Agenda, offering the clearest outline yet of its regulatory ambitions for the energy sector and more specifically on offshore carbon storage.
The plan underscores support for oil and gas producers while sketching out a timeline for new rules on offshore carbon storage.
Companies like Exxon and Chevron have leased substantial swathes for CO2 storage projects in state waters off the coast of Texas in the last few years. Energy companies like them likely see offshore storage in federal waters as a growth area in the mid and long-term but need clarity on both safety and environmental do’s and dont’s before making more substantial investments.
The development comes after the preservation of the 45Q tax credit and its support for carbon capture activities (including enhanced oil recovery) but developers still need to start construction on projects before 2032 to qualify for it.
Offshore carbon storage moves forward (without a fixed deadline)
Interior’s Bureau of Ocean Energy Management (BOEM) along with the Bureau of Safety and Environmental Enforcement (BSEE) are preparing to unveil a draft rule next May that would govern how companies store carbon dioxide beneath the ocean floor. A formal deadline to finalize it has not been included.
Congress, through the 2021 Bipartisan Infrastructure Law, had ordered Interior to complete such regulations by late 2022. Officials have acknowledged delays, citing the technical hurdles of launching a new permitting system.
And while offshore storage shows some progress, several high-profile carbon pipeline regulations were absent from the spring agenda.
The Pipeline and Hazardous Materials Safety Administration (PHMSA) had previously floated a Biden-era plan to expand safety standards for carbon dioxide pipelines, including those carrying the gas in gaseous, liquid, or supercritical form. That rule, never formally published, hasn’t been included in this administration’s timetable but has been moved to the “long-term actions” for the PHMSA, as reported by E&E Politico.
Progress in Europe
These developments come at a time when European projects with offshore CO2 storage are progressing. Longstanding projects like Sleipnir and Snøhvit have been operational for a while and even though they have seen challenges are perceived as success cases.
Several weeks ago the Northern Lights project also officially commenced operations, with the first volumes of CO2 injected and securely stored 2,600 meters (1.6 miles) beneath the North Sea seabed.
Read more: ExxonMobil Signs Largest Offshore Carbon Storage Deal In The U.S.
