48 TEXAS JOURNAL OF OIL , GAS , AND ENERGY LAW [ Vol . 16:1
ject or ( 2 ) the date monitoring ends for such project . Any recaptured amount must be added to the amount of tax due in the taxable year in which the recapture event occurs . 10
II . CCUS METHODS , APPLICATIONS , AND SELECT INFRASTRUCTURE
An integrated CCUS system has three functions : “( 1 ) capturing CO 2 and separating it from other gases ; ( 2 ) purifying , compressing , and transporting the captured CO 2 to a sequestration site ( or site where it can be utilized ); and ( 3 ) injecting the CO 2 into underground reservoirs .” 11 The first of these functions , capturing the CO 2 , is the most challenging . 12 Carbon capture facilities are expensive to construct , and operating them requires a substantial amount of energy . 13 This section of the paper will review ( A ) select capture methods used for CCUS and ( B ) primary disposal and sequestration processes and select CO 2 infrastructure .
A . Select Capture Methods used for CCUS
There are several methods for capturing carbon at large-scale industrial facilities or power plants , including ( 1 ) post-combustion capture , ( 2 ) precombustion capture , and ( 3 ) oxy-fuel combustion capture . 14 The oxy-fuel combustion capture method has been limited primarily to research and development settings and will not be substantively discussed in this paper . However , it is worth noting , there are several pilot projects across the United States that have implemented oxy-fuel combustion technology in EOR operations . 15
Presently , the power plants that have implemented post-combustion capture systems in the United States have the potential to “ operate at an 85 – 95 % capture efficiency — meaning that 85 %– 95 % of all the CO 2 produced during the combustion process could be captured ” before release into the atmosphere . 16
10 . Michael Gerrard et . al ., The Future of Carbon Capture , Use and Storage Projects : Tax Credits , Measurement Standards and Transaction Structures , BRACEWELL ( June 24 , 2020 ), https :// bracewell . com / insights / future-carbon-capture-use-and-storage-projects-tax-credits-measurementstandards-and ; Martha Kammoun & Elizabeth L . McGinley , Treasury and the IRS Fuel Taxpayer ’ s Confidence Regarding Section 45Q Credits following Call for Suspension of the Credits , BRACEWELL ( June 15 , 2020 ), https :// bracewell . com / insights / treasury-and-irs-fuel-taxpayers-confidence-regardingsection-45q-credits-following-call ; Elizabeth L . McGinley & Steven J . Lorch , Treasury Releases Long- Awaited Proposed Regulations under Section 45Q , BRACEWELL ( June 8 , 2020 ), https :// bracewell . com / insights / treasury-releases-long-awaited-proposed-regulations-under-section-45q .
11 . PETER FOLGER , CARBON CAPTURE AND SEQUESTRATION ( CCS ) IN THE UNITED STATES 1
( 2018 ), https :// fas . org / sgp / crs / misc / R44902 . pdf . 12 . Id . 13 . Id . 14 . Id . at 3 . 15 . Id . at 5 . According to Oxy ’ s website , the company has partnered with a company named “ Net Power ,” which according to its website , is utilizing the oxy-fuel combustion method to capture and separate CO 2 . The company ’ s plant has recently completed construction in La Porte , Texas and plans to become operational in 2020 – 2021 .
16 . Id . at 3 .