New US legislation spurs WV power plant with CCUS
SUMMARY
Expanded 45Q tax credits were instrumental in advanced the project.
By Dale LunanPOSTED IN:
Competitive Power Ventures (CPV) said September 16 it would proceed with the development of a $3bn, 1,800-MW combined cycle natural gas power plant in West Virginia that would incorporate carbon capture utilisation and storage (CCUS) technology.
Pending permitting and construction, the facility is expected to begin operations later this decade, but would not have been possible without terms in the recently-enacted US Inflation Reduction Act expanding federal 45Q tax credits for CCUS investments to $85/mt of CO2 sequestered from $50/mt.
“The Inflation Reduction Act is already having a positive impact for the people of West Virginia and carbon capture utilisation efforts here in the US,” said senator Joe Manchin, who chairs the Senate Energy and Natural Resources Committee and pushed for the tax credits. “I’m pleased Competitive Power Ventures is investing in the Mountain State and look forward to seeing the benefits of this investment – including long-term, good-paying jobs and supporting our regional economies – for years to come.”
CPV said its decision to locate the plant in West Virginia was also influenced by recent state legislation that sets rules for carbon sequestration. The combination of the federal tax credits and the state legislation made West Virginia an “ideal” location for the project.
“West Virginia has been extremely forward thinking at the local, state, and national level, and we cannot thank senator Manchin enough for his leadership in making this opportunity possible,” CPV CEO Gary Lambert said.
CPV will announce later this year the location of the power plant, but local media outlets are already suggesting it will be built in Doddridge County, in the northern part of the state.
