2021 ] CARBON CAPTURE , UTILIZATION , AND SEQUESTRATION 67
IV . CERTAIN COMMERCIAL AND LEGAL CONSIDERATIONS SURROUNDING THE COMMON ARRANGEMENTS NECESSARY TO CONDUCT THESE OPERATIONS
As noted above , CCUS projects involve an interdependent combination of processes and technologies that are used to produce , capture , and either or both utilize and store CO 2 . As such , any CCUS project will require a tailored set of contractual arrangements between the various project participants , which allow for the integration of these processes and address the various risks that each participant is exposed to by virtue of its participation in the project . This section of the paper will provide a general overview of the main considerations that will need to be addressed in negotiating some of the more common commercial arrangements involved in CCUS projects .
A . Participants ; Economic Drivers and Objectives for CCUS Projects
A CCUS project will typically involve three or four principal participants who will enter into the commercial arrangements that tie together the various processes required to operate the project . These include some variations of the following : ( 1 ) an emitter of CO 2 , ( 2 ) a capturer of CO 2 , 116 ( 3 ) a transporter of CO 2 , and ( 4 ) a user or storer of CO 2 . Emitters of CO 2 in this context are owners of industrial facilities that emit CO 2 as part of their primary operations . Examples of common CO 2 emitters include gas processing plants , ammonia facilities , and a number of other industrial facilities . Capturers of CO 2 are typically the sponsors of the CCUS project . They own the carbon capture equipment which attaches to the emitter ’ s facilities and will be the party that earns the tax credits that are available under Section 45Q . Transporters of CO 2 are necessary to ensure the delivery of captured CO 2 volumes to the ultimate end-user , the storage facility where those volumes are sequestered , or both . The most common method of CO 2 transportation is through a pipeline . Users of CO 2 come from a wide variety of industries . While the most common use of captured CO 2 today is for EOR , there are a number of other industries that use CO 2 , including producers of fertilizer , producers of chemical compounds ( e . g ., hydrogen ), power generation companies , and producers of iron and steel , to name a few . Storers of CO 2 for sequestration projects are entities that own and maintain the underground storage facilities used to sequester CO 2 .
In many situations , one entity could take on multiple roles as part of a CCUS project . For example , an industrial facility may function as both an emitter and capturer of CO 2 if it desires to invest in the carbon capture equipment needed to remove CO 2 from its primary operations . Similarly , a capturer , user , or storer will often take on the role of transporter for all or a portion of the project and
116 . Note : CCUS projects that rely on direct air capture technology to capture CO2 will not require the participation of an emitter . In these projects , the capturer uses technology that removes CO2 directly from the air surrounding the facility rather than the emissions generated from an industrial plant thereby eliminating the need for an emitter .