Public Funding

It is unlikely that CCS will be funded entirely with private money. Public support in the form of loan guarantees, grants, tax credits and the like will be necessary. A report from the Massachusetts Institute of Technology recommended that the U.S. government put up $460 million per year for the next five years to fund CCS research and development, plus an additional $400 million per year for demonstrations. Comparably, the Coal Utilization Research Council (CURC) made similar calculations, but they include private funds along with federal commitments. CURC estimates that CCS research, development and demonstration would require $1.7 billion over the 2008-2010 period (assuming a high cost CO2). Further, they estimate that from 2011-2015, $6.1 billion would be needed.

Domestic:

• The American Recovery and Reinvestment Act of 2009 (Pub. L. No. 111-5) included several provisions that will fund $3.4 billion worth of CCS-related programs:
  • $1 billion for fossil energy research and development programs
  • $800 million for the Clean Coal Power Initiative
  • $1.52 billion for carbon capture and energy efficiency improvement projects
  • $50 million for a site characterization in geological formations
  • $20 million for geologic sequestration training and research grants
  • $10 million for program direct funding

FY 2009 Appropriations:

Technology Programs (All figures in $Millions)	FY 2008 Omnibus	President's Request	CURC-EPRI Roadmap	House Committee	Senate Committee
Total R&D	349.8	382.7	440.0	440.6	412.1
CCPI (Demonstrations)	69.4	85.0	325.0	241.0	232.3
FutureGen	74.3	156.0	215.0
Program Total	493.5	623.7	980.0	681.6	644.4

International:

• On Feb. 26, 2008, the Canadian government released its annual budget. C$250 million would be spent on CCS technology. C$240 million of this money will go to a project in Saskatchewan.
• The Canadian province of Alberta announced on July 8, 2008, that it will create a C$2 billion fund to advance large-scale CCS projects.
• Australia established the National Low Emissions Coal Initiative on July 28, 2008, to accelerate the development and deployment of clean coal technologies. The government will provide A$500 million over eight years, including A$295 million over 2008-2009.
• Norway, which is not part of the EU, will spend 1.9 billion crowns (about $309 million) on CCS research and development in 2009 (a 70% increase over the 2008 budget).
• Through the 5th and 6th Framework Programs for Research (1998-2002 and 2003-2006), the EU provided funding of around €80 million for CCS research and development. As part of the 7th Framework Program (2007-2013), the EU will spend about €360 million on CCS and clean coal technology research and development.
• Under the EU's 2008 climate package, up to 300 million emissions allowances will be set aside (until Dec. 31, 2015) to help fund up to 12 commercial demonstration projects "that are aiming at the environmentally safe capture and geological storage of carbon dioxide as well as the demonstration projects of innovative renewable energy technologies" in the EU. Depending on the price of carbon, this could yield anywhere from €4-9 billion. No one project may get more than 15% of the total available allowances.