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Carbon capture is getting a boost from a landmark tax-credit deal with Bank of America that is one of the largest-ever investments in the technology, The Wall Street Journal reports.
The bank is providing $205 million in exchange for tax credits from an ethanol producer that captures the carbon produced at a plant in North Dakota. It is the first deal of its kind since the 2022 climate law increased the tax credits available for capturing carbon and storing it underground. The tax credits are attracting renewed interest in the technology from companies such as ExxonMobil.
“You can only do so much renewables build-out,” Noah Zerance, a director on Bank of America’s sustainable finance team, said in an interview. “There has to be an element of trying to address the emitters that are in the market today and helping them decarbonize.”
