The folks in boots and stetsons like to talk a big game about investing in carbon capture technology. But most don't expect it to be profitable anytime soon — even with enhanced tax credits in the new climate law.
Why it matters: Without any substantive price on carbon, companies face a potential long road toward making carbon capture, utilization and storage (CCUS) a balance sheet line that's in the black.
Driving the news: The Dallas Fed issued the results of its latest survey of oil and gas executives. Ben Geman in Axios Generate has more if you want the details.
- 54% of those surveyed said CCUS won't be profitable, despite more generous incentives under the Inflation Reduction Act.
- Another 42% said some projects might be profitable.
State of play: The U.S. is a global leader in carbon capture technology and funding. Investment in Q2, for example, jumped 20% from the start of the year.
- Execs, meanwhile, like to trumpet their carbon capture investments during panels, keynote addresses and media appearances. Privately, they seem pessimistic.
Zoom out: Investment in carbon tech or emissions tech — categories that include CCUS — has remained robust in the U.S. despite broader market headwinds.
- Deal value in Q2 dipped just 3% in carbon tech, per PitchBook data, a bullish sign at a time when valuations are getting hammered.
👀 What we're watching: How many U.S. projects come online, how soon, and to what extent they capture emissions as promised.
