CCS and hydrogen

Carbon capture and Storage (CCS), and hydrogen are needed to abate hard-to-decarbonize industries like ethanol, steel and refining.

Why do we pair CCS and hydrogen as one advocacy area? Because they go hand-in-hand. Low carbon hydrogen can be produced a number of ways, but the most promising are from renewable power and natural gas where emissions have been captured using CCS. Scaling up hydrogen from natural gas first is a faster road to wide-scale hydrogen adoption, and allows more renewables into the grid while industry transforms.

What is CCS technology?

CCS is a proven technology that captures carbon before it’s emitted into the atmosphere. CCS can help hard to abate industries, like steel production, cut their CO₂ and remain competitive in an increasingly decarbonized world. Policy can help scale CCS projects.

The US is home to several states that have the geology to store carbon dioxide in a safe, secure and effective way. bp actively participated in a National Petroleum Council study, that noted the US as having “one of the largest assessed CO₂ geologic storage” capacities.

This gives the country tremendous opportunity to deploy CCS and further reduce its carbon emissions and we’re engaging with policymakers to make it happen.

Low carbon hydrogen is an essential complement to electrification of global energy systems. Hydrogen can provide the energy high-heat industries need to operate, and emits only water when combusted. The technology is advancing every day, but switching to hydrogen – whether for long-haul trucking or industrial hubs – will take major investments in infrastructure and consumer buy-in. That’s where policy can help.

A tanker truck drives down the highway with green trees in the background

At the federal level, we actively support policy incentives for CCS and hydrogen as well as funding for large scale pilot and demonstration projects, large-scale storage and infrastructure.

We’re also engaging with the US Department of Energy to support efforts to scale CCS and hydrogen across the US.

Advancing CCS in Illinois, Indiana and Texas

Illinois and Indiana are well positioned to attract the investment needed to deploy CCS commercially and at scale. Both states have the geological capability to safely store carbon dioxide underground. This provides the state with the opportunity to reduce its carbon emissions, support jobs and promote statewide economic growth.

An existing energy hub for the US, Texas already has the infrastructure in place to transport carbon from production source to storage as well as the technical and industrial know-how to tackle the hurdles of capturing and storing carbon underground.

Effective legislation can create a framework to accelerate CCS activity by:

Creating a clear permitting process for CCS projects.
Clarifying who owns the rights to pore space – the small spaces within underground rocks where carbon can be stored – which is essential for advancing CCS.
Setting clear guidelines that allow for CCS project development if a majority of owners on a block of land agree.
Establishing rules for transfer of ownership to the state for long-time stewardship once federal and state regulatory agencies verify storage is secured.

We’re engaging with local stakeholders and state policymakers to help bring this important technology to the Prairie, Hoosier and Lone Star states.

bp applauds Illinois Governor J.B. Pritzker for signing into law Senate Bill (SB) 1289

Illinois enacts CCS legislation – Senate Bill 1289

July 18, 2024

bp applauds Illinois Governor J.B. Pritzker upon signing into law Senate Bill (SB) 1289, which creates the much-needed regulatory framework for advancing carbon capture and storage (CCS) projects in the state.

We worked as part of a diverse coalition comprising business, agricultural, environmental and labor interests to support the passage of Illinois’ new CCS law, which, following the enactment of similar legislation in Indiana, firmly positions the Midwest as a climate leader in the US.

Indiana Governor Eric Holcomb signs a CCS bill at bp's Whiting refinery

Indiana CCS bill signing at Whiting refinery

bp hosted Indiana Governor Eric Holcomb and Indiana legislative leaders, along with members of the business community for the ceremonial signing of the state’s new CCS law at our Whiting refinery in September.

We worked with a coalition to support passage of the legislation which will encourage future carbon storage projects in the state. This signals to the rest of the United States that Indiana is a leader in the future of energy and bp is a partner of choice to support policies that will help bp and the US achieve our shared net zero ambition. Both Indiana and bp are serious about reducing greenhouse gas emissions, and with CCS, we have another opportunity to decarbonize and grow the economy.