CALGARY, Alberta (March 15, 2023) — Enverus Intelligence Research (EIR), a subsidiary of Enverus, the most trusted energy-dedicated SaaS platform, has released another report utilizing the company’s ESG and Geoscience Analytics platforms to examine the potential for CO2 storage in Appalachia and assesses source-to-sink project economics given the current 45Q tax incentive structure.
The energy evolution currently underway, along with additional incentives inside new laws like the Inflation Reduction Act, has brought renewed attention to carbon capture technology, the economics behind it and the optimal locations for storage. However, not all sub-surface basins are created equal warns EIR, as increased attention has focused on carbon storage viability in Appalachia. EIR’s latest report seeks to answer those questions.
“Our current view is that CO2 storage potential in Appalachia is very limited as the underlying reservoirs are thin with low porosity and permeability,” said Brad Johnston, a senior geology associate with EIR and report author. “The Appalachia region accounts for about 8% of U.S. CO2emissions but lacks any significant storage projects.”
This raises the question: “Where are they going to put all of the CO2 up there to keep up with emission reduction targets and their potential blue hydrogen hub?” Johnston said.
- EIR believes CCS is currently uneconomical in the Oriskany Sandstone in Appalachia. Low porosity and thickness contribute to storage breakevens nearly 170 times higher than the Louisiana Oligocene-Miocene sands at the midpoint.
- Capture economics are very challenged in the area even if we assume proximate access to the highest quality disposal reservoirs. A higher price of carbon or technology-driven cost reductions are required to warrant CCS activity in the Oriskany.
- EIR struggles to justify the economics of retrofitting power plants for CCS or for the proposed Decarbonization Network of Appalachia (DNA) hydrogen hub in the region. With low modelled injection volumes, hub-scale or large single-emitter sequestration projects will be difficult.
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About Enverus Intelligence Research
Enverus Intelligence Research, Inc. is a subsidiary of Enverus and publishes energy-sector research that focuses on the oil and natural gas industries and broader energy topics including publicly traded and privately held oil, gas, midstream and other energy industry companies, basin studies (including characteristics, activity, infrastructure, etc.), commodity pricing forecasts, global macroeconomics and geopolitical matters. Enverus Intelligence Research, Inc. is registered with the U.S. Securities and Exchange Commission as a foreign investment adviser.
Media Contact: Jon Haubert | 303.396.5996