CCS tax credit transfer: CapturePoint sells Section 45Q tax credits in deal valued at $105mn

🌍 Operating since April 2023, the Arkalon CCS facility in Kansas, US, captures 250,000 metric tons of CO2 annually for 12 years from nearby bio-ethanol production.

🛢️ Captured CO2 is used in Enhanced Oil Recovery (EOR) operations across over 75 active CO2 injection wells and later stored.

💡 According to the latest IRS guidance, Section 45Q credit of $35/ton is available for CO2 captured using CCS processes on or after Feb’18 and utilized for EOR, thereby valuing the entire deal at $105mn.

🔗 Previously, CapturePoint signed a similar 45Q tax credit transfer deal for CO2 captured from a nitrogen fertilizer facility in Coffeyville, Kansas in Jan’23.

Access granular data and analytics on tax credit transfer agreements with the Enerdatics Energy Transition Finance database – the most comprehensive source of research and intelligence on renewable energy transactions, globally.