CO2 (Pt. 2 of 2) – Carbon Trading May Be Dead For Now In US, But Billions Will Continue to Pour Into CCS
Submitted by EnergyTechStocks.com
While last week’s financial meltdown killed for now a nationwide carbon trading market in the United States, globally billions of dollars will continue to be spent on developing carbon capture and sequestration technology (CCS).
As much as Americans won’t be willing to pay higher utility bills to curb global warming, neither will they – nor billions of others in countries around the world – be willing to let governments slack off on developing technology to curb CO2 emissions from coal-fired power plants. Ironically, when CCS is ready for deployment, the global public may not be willing to pay for it, given that CCS might add as much as 50% to the cost of electricity from coal-fired power plants. But that won’t be for a number of years.
For now, it remains politically popular to push for CCS, a process that involves “capturing” CO2 emissions before they escape into the atmosphere and burying or “sequestering” them underground. Last week Reuters reported that the European Union is considering subsidies for CCS projects that could total as much as $14.2 billion and cover a wide range of energy equipment, services, construction and chemical companies.
Which specific companies are likely to benefit?
Several look like they could get chunks of that subsidy, thanks to development projects they have underway. They include StatoilHydro ASA, Iberdrola SA, through its Scottish & Southern unit; Siemens AG, Alstom SA, and Rio Tinto Plc and BP (British Petroleum), which have a joint venture in this area called Hydrogen Energy.
For more on carbon sequestration, see:
IEA Warns Only Carbon Sequestration Can Prevent Environmental Nightmare In 25 Years or Less
Both a Conservative and a Green Investor? – Here’s a Portfolio for You (Part 1 of 4) Siemens and Alstom
CO2 (Pt. 1 of 2) – Wall Street’s Meltdown Has Killed For Now A US Carbon Trading System
