California is about to become a high-risk region for a potential carbon dioxide supply shortage in the US, according to Bruce Woerner of Woerner CO2 Consulting.
On a gasworld webinar, Woerner pointed to tightening market conditions on the US West Coast, citing ethanol plant losses and the upcoming closure of the Phillips 66 refinery in Los Angeles, which currently supplies around 500 tonnes per day of CO2.
“[This closure] will impact almost 500 tonnes a day of CO2 in a market that’s already very tight,” he said. “[That makes California] ground zero for what could be a potential looming problem.”
Woerner added that other refineries could soon also divert CO2 to sequestration projects if 45Q tax credits remain in place, and warned that state-level policy in California may place additional pressure on emitters to divert CO2 away from the merchant market.
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