Carbon management, an umbrella term that refers to a suite of technologies and practices, is the process of capturing carbon dioxide (CO₂) emissions before they enter the atmosphere or removing historic emissions to decrease the amount of CO₂ in the atmosphere and reduce climate change impacts.

Carbon management is divided into two main sectors: carbon removal (e.g. direct air capture) and point-source carbon capture. After capture or removal, carbon dioxide is compressed and transported to a facility for utilization or permanent storage. During long-term carbon dioxide storage, also referred to as geologic storage, CO₂ is pumped and sequestered in deep wells bored in specific geologic formations able to safely contain and prevent the escape of carbon.

Why is carbon management important?

Why is carbon management a solution for Louisiana? To avoid extreme climate events, greenhouse gas emissions must be reduced while maintaining economic and social development goals. Currently, renewable energy is not at scale to replace fossil fuels and the technology needs further development.

Some vital industrial processes, such as those required to make steel, iron, and cement, require advanced engineering solutions that have not been developed to avoid emitting carbon. Since these alternative solutions are still under development, carbon management is one method of reducing greenhouse gas emissions promptly to meet emissions reductions goals and avoid global warming higher than two degrees Celsius above pre-industrial levels.

Louisiana's coast is especially vulnerable to climate change as sea level rise, hurricane intensification, and extreme weather events threaten communities. While the coastal region is the most vulnerable to inundation, climate change impacts the entire state.

During late 2023, Louisiana faced a state-wide drought that induced wildfires, disrupted agriculture, and threatened freshwater resources, peaking in November when over 75% of the state was classified as experiencing "exceptional drought" (highest intensity). The Louisiana Climate Action Plan was developed to constructively address these vulnerabilities and build an adaptation timeline with aims to reach net-zero greenhouse gas emissions by 2050.

Carbon management projects are highlighted as an industrial decarbonization strategy to mitigate "high-intensity" and "hard-to-abate" emissions alongside industrial electrification and switching to low- and no-carbon fuels.

Since Louisiana is a heavily industrialized state, most greenhouse gas emissions (about 65%) are caused by industrial processes such as chemical manufacturing, petroleum and coal refining, and natural gas processing. While the Climate Action Plan identifies carbon capture, utilization, and storage (CCUS) as one of the strategies to lower and eliminate these emissions, there is also widespread corporate interest in carbon management due to the market incentive created by the 45Q tax credit.

The 45Q tax credit was established in 2008 and was recently enhanced by the Inflation Reduction Act (IRA) passed in 2022, which raised credit values for point-source and direct air capture, allowed more facilities to qualify for the credits, and enabled new credit options (direct pay and transferability) so companies can "cash out" or transfer the tax credits.

For these reasons, carbon management is one of many energy transition strategies being considered for its ability to reduce emissions from difficult to decarbonize sectors and provide economic opportunities.

Joyce WMA. Credit: Emily Clarke

Why in Louisiana?

Carbon management projects are not only valuable to Louisiana's climate adaptation and industrial decarbonization plans, but Louisiana is well-suited to be at the center of large-scale CCUS projects due to pre-existing industrial infrastructure and favorable geological characteristics.

Although not included in the CCUS acronym, transportation of carbon is a key part of carbon management and most often requires pipelines to move carbon from industrial facilities to utilization or storage sites. Since Louisiana is already heavily industrialized, carbon pipelines already exist along the Gulf Coast and can be easily integrated with facilities capturing carbon emissions, although CCUS projects will often require the build out of additional pipelines.

Carbon sequestration requires geological conditions that reduce seismicity and leakage potential while maintaining storage potential, which saline aquifers across Louisiana provide. These saline formations have been identified as viable permanent carbon storage locations and have the highest carbon dioxide storage potential of all formation types.

Depleted oil and gas reservoirs can also be used for carbon sequestration and enhanced oil recovery (EOR), which has been highlighted for its economic potential in Louisiana, though it may not have the desired climate benefit.

The proximity of industrial emissions, pipelines, and sequestration sites in Louisiana has the potential to become an efficient carbon management system that positions the state to be central to CCUS and carbon removal expansion in the United States. This is exemplified by the development of Project Cypress in southwest Louisiana as a part of the Department of Energy's Regional Direct Air Capture Hub program, funded through the Bipartisan Infrastructure Law (BIL).

However, despite the relevance of carbon management to Louisiana, there are drawbacks and community concerns that should be addressed. To ensure the best outcomes for climate change efforts, it is critically important to listen to and work with communities that have serious concerns about this technology and the impacts of this sector's growth.

Learn more about drawbacks and concerns in this next blog in our series on carbon capture in Louisiana.

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