COALITION LETTER: Support for the 45Q Tax Credit

Speaker Johnson, Minority Leader Jeffries, Majority Leader Thune, and Minority Leader Schumer,

As business leaders and stakeholders representing the full diversity of the sectors making up the carbon management industry, we write to share our unwavering support for the federal Section 45Q tax credit. 45Q and the projects it incentivizes play a valuable role in providing reliable, affordable domestic energy for American families and solidifying America’s role as a global leader in energy, industrial and
manufacturing production. Carbon management technologies, including carbon capture, removal, reuse, transport, and storage, are crucial tools for balancing the increasing need for affordable, reliable energy that drives the American economy, with the imperative to maintain the US’s global leadership position in the demonstration and deployment of these technologies while countries like China, Canada, the UK,
and the EU continue to invest significantly in this expanding sector. With this in mind, we strongly urge Congress to maintain critical bipartisan support for the 45Q tax credit and oppose any efforts to weaken its utility to American businesses.

CARBON MANAGEMENT AND THE 45Q TAX CREDIT AS A KEY ECONOMIC DRIVER:
Thanks to bipartisan congressional leadership, carbon management technologies have emerged as powerful economic driver in the US. 45Q encourages innovation, job creation and preservation, as well as attracting investment in new technologies. Economywide deployment of carbon management technologies at industrial and power facilities, along with the scaling of large-scale direct air capture
facilities, is an available tool to preserve and expand a high-wage jobs base in key sectors in almost every state in the nation. Furthermore, among clean energy and industrial technologies, the full suite of carbon management technologies is especially critical to sustaining and bolstering our nation’s domestic energy, industrial, and manufacturing base, which are impossible to decarbonize through other methods alone.

As with most burgeoning industries, federal investments in both tax policies and research, development, demonstration, and deployment are pivotal to the successful commercial liftoff of these technologies across the economy. Significant federal investments in carbon management and associated infrastructure over the past few years have spurred the announcement of more than 270 publicly announced domestic projects that span the carbon management value chain and technology readiness levels, signaling that good policy translates into real-world projects. This combination of economic and job benefits, coupled with emissions reductions, fosters broad, deeply bipartisan support for carbon management technologies that is unprecedented in US energy policy.

THE 45Q TAX CREDIT’S ROLE IN MAINTAINING GLOBAL ENERGY LEADERSHIP:
Carbon management technologies are essential for preserving America’s economic strength and global competitiveness by ensuring that domestic energy remains abundant and affordable – helping to drive our continued global leadership across sectors. As international markets shift toward cleaner, more efficient energy, carbon management technologies will help sustain American industries without sacrificing economic growth. By proactively managing emissions, the US can increase efficiency and attract investments, all while safeguarding and expanding US energy production, manufacturing, and industrial sectors. In fact, by enabling cleaner utilization of domestic energy sources, the 45Q tax credit and carbon management technologies broadly help to reduce reliance on foreign energy imports, strengthen US energy independence, and provide American industry with strategic leverage in global energy markets.

GROWING US ELECTRICITY DEMAND: Over the past several decades, global energy demand has increased significantly, reinforcing the need and urgency for a comprehensive, multifaceted strategy to address planet-warming emissions while maintaining domestic sources of energy that are affordable and reliable to American families and businesses while preserving and creating jobs that sustain American families and regional economies. Deployment of carbon management supports an “all-of-the above” energy strategy by bolstering the continued supply of available, low-emissions energy sources. Domestic electricity demand is set to surge over the next several years. As US utilities and power producers work to address surging demand in the next decade, low- and zero-emitting firm, dispatchable power resources, including carbon capture at power facilities, will be a crucial strategy to meeting anticipated demand. The 45Q tax credit is the foundation for public and private sector investments in carbon management technologies. These investments will help to ensure that domestic energy production is maintained and strengthened in a reliable, sustainable manner to meet the growing energy needs of the American economy into the future.

ENSURING AMERICAN INDUSTRIES REMAIN GLOBALLY COMPETITIVE: The US has
been the global leader in the commercialization of carbon management technologies for decades, providing new markets and opportunities for significant economic growth. However, nations including China, Canada, the UK, and the EU, are now heavily investing in carbon management technologies and positioning themselves as leaders in deploying these technologies and associated infrastructure. Global pledges to reduce greenhouse gas emissions encourage competition. Staying competitive on the global stage means leading the charge in commercializing innovative, clean energy technologies, which is increasingly part of maintaining a strong, resilient economy. Carbon management technologies can not only address environmental concerns but also improve America’s strategic position in global markets and reinforce our position as the global leader in greenhouse gas emissions reduction targets. The 45Q tax credit is the main driver to ensure these industries remain viable going forward and help maintain the US competitive edge in global industries and manufacturing. This balance between energy production and environmental stewardship is crucial for long-term leadership in the evolving global energy landscape.

American businesses and industries spanning multiple sectors, including agriculture and food, oil and gas, cement and steel, aviation and shipping, and pulp and paper, to name a few, rely on the certainty the 45Q tax credit provides to plan investments, hire workers, and obtain construction materials, among other things. Companies have publicly shared that a weakened 45Q tax credit will halt project deployment and, in many cases, cause announced and future projects to relocate abroad to countries with a more favorable policy landscape. With this in mind, we respectfully urge Congress to protect the widely supported, bipartisan investments made in the 45Q tax credit. 45Q is central to ensuring that carbon management technologies can fulfill their role in maintaining domestic energy supplies, supporting a robust and diverse US industrial and manufacturing base, protecting and creating family sustaining jobs that local economies depend on while simultaneously maintaining America’s place on the world stage as a technology innovation leader.

Sincerely,

280 Earth
8 Rivers
ADM
Advanced Resources International, Inc.
Air Company
Aircapture
AirMyne
Aluminum Technologies
Ambiunt Environmental and Regulatory
American Biomass Energy Association
American Chemistry Council
American Conservation Coalition Action
American Iron and Steel Institute
American Petroleum Institute
ArcelorMittal
Avalon International Corporation
Avnos, Inc.
B2E2, LLC
Baker Hughes
Banyu Carbon
BASF Corporation
Battelle
Bipartisan Policy Center Action
Blue Planet Systems
Blue Spruce Operating
Business Council for Sustainable Energy
California Carbon Solutions Coalition
Calpine Corporation
Capital Power
Captura
Capture6
CapturePoint LLC
Carbon Business Council
Carbon Capture Coalition
Carbon GeoCapture
Carbon Removal Alliance
Carbon Solutions
Carbon TerraVault
Carbon Utilization Research Council
Carbon180
CarbonBlue
CarbonCapture Inc.
CarbonCure Technologies
CarbonFree
Carbonova USA LLC
CarbonQuest
Carbonvert
Carmeuse Americas
Celanese Corporation
Cemex, Inc. (US)
Cemvita Inc.
Center for Climate and Energy Solutions
CERT Systems
CF Industries
Chart Industries
Citizens for Responsible Energy Solutions (CRES)
Clairity Technology
Clean Air Task Force
Clean Energy Buyers Association
ClearPath Action
Climeworks
CO280
Coalition for Renewable Natural Gas
Conservative Texans for Energy Innovation
Core Energy, LLC
Cormetech Inc.
Covestro LLC
CVR Partners, GP
Dimensional Energy
Dioxycle
Direct Air Capture Coalition
DTE Vantage
EDAC Labs
Elimini
Entropy Inc.
Equatic
Fluor
Fortera
Frontier Carbon Solutions
Gevo, Inc.
Global CCS Institute
Green Plains Inc.
Growth Energy
Harvestone Low Carbon Partners
Heidelberg Materials North America
Heimdal
Heirloom
Heriot Watt University, Edinburgh, UK
HIF Global
Holcim (US) Inc.
Holocene Climate Corporation
Honeywell
Illinois Clean Fuels
International Brotherhood of Boilermakers
ION Clean Energy
Jackson Hole Center for Global Affairs
John Crane
Jupiter Oxygen Corporation
KC Hill Consulting, LLC
Lake Charles Methanol
LanzaTech, Inc.
Lapis Carbon Solutions
Leilac
LIUNA Midwest Region
LoCI Controls, Inc.
Louisiana DENR
Louisiana Mid-Continent Oil & Gas Association
LSB Industries Inc.
Mantel Capture
Marquis Inc.
Melzer Consulting
Minnkota Power Cooperative
Mitsubishi Heavy Industries America
Moulinex Business Services, LLC
National Mining Association
National Ocean Industries Association
National Rural Electric Cooperative Association (NRECA)
National Wildlife Federation
Net Power
New Mexico Institute of Mining and Technology
NorthStar Clean Energy
Noya
ofCarbon Associates, LLC
Oxylus Energy
Parallel Carbon
Pennsylvania Environmental Council
POET LLC
Portland Cement Association
Remora
Renewable Fuels Association
RenewCO2
Republic Services
Retract LLC
RW Energy
Secant Fuel
Shell USA
Skytree
Spiritus
Steel Manufacturers Association
Sumitomo Corporation
Summit Carbon Solutions
Svante
TerraFixing
The Emissions Capture Company, LTD
The Fertilizer Institute
The Nature Conservancy
Third Way
Tondu Corporation
Topsoe
Travertine Technologies, Inc.
U.S. Chamber of Commerce
United Association of Union Plumbers and Pipefitters (UA)
United Mine Workers of America
United Steelworkers
Utility Workers Union of America
Vero3 Limited
W.L. Gore & Associates
Waste Management
Weyerhaeuser Company
Yama
Zero Carbon Systems, Inc.