News Release: State Work Group Releases New Report on Carbon Capture & Electricity Markets

WASHINGTON, DC – A multi-state group co-convened by Wyoming Governor Matt

Mead and Montana Governor Steve Bullock released a new report today outlining the

opportunities and challenges for integrating power plants with carbon capture into the

nation’s wholesale electricity markets. The State CO2-EOR Deployment Work Group

works to expand carbon capture from power plants and industrial facilities for use in

enhanced oil recovery with geologic storage (CO2-EOR).

“In our current system of regulating the power sector and managing the grid, no single

actor or mechanism at the federal, state or regional transmission organization level is

responsible for considering the combined impact of affordability, reliability, and

environmental stewardship as they relate to cost and efficiency,” said Brad Crabtree,

Vice President for Fossil Energy at the Great Plains Institute. “This means that the many

benefits of carbon capture and other dispatchable low and zero-carbon technologies go

unrecognized and unrewarded in U.S. electricity markets today. This report seeks to

highlight that challenge and suggest ways to address it.”

The report—Electricity Market Design and Carbon Capture Technology: The

Opportunities and Challenges—focuses on the role of carbon capture in the power

sector and outlines measures needed at the federal, state, and regional grid operator

level to allow for robust integration and dispatch of carbon capture in electricity markets.

The report describes how carbon capture and other dispatchable low and zero-carbon

power generation technologies such as nuclear, combined heat and power, geothermal,

and solar thermal provide important economic, grid reliability, and emissions reduction

benefits. Yet, these resources face growing challenges to their economic viability in

regional wholesale electricity markets.

Governors Mead and Bullock launched the Work Group in 2015, which released a

comprehensive set of federal and state incentive policy recommendations for carbon

capture in December 2016 – Putting the Puzzle Together: State & Federal Policy

Drivers for Growing America’s Carbon Capture & CO2-EOR Industry – and a white

paper outlining pipeline infrastructure options to enhance carbon capture industry

buildout. The Great Plains Institute staffs and facilitates the Work Group.

“We need to redouble efforts to implement the carbon capture incentives and CO2

pipeline infrastructure financing recommendations already prepared by the Work Group

to enable the potential of carbon capture along with other low and zero-carbon power

generation options,” said Doug Scott, GPI Vice President of Strategic Initiatives.

State and federal policymakers have only recently begun to consider policies to ensure

the continued economic viability of dispatchable generation resources in evolving

electricity markets.

“At the federal level, financial incentives, Federal Energy Regulatory Commission

initiatives, and expanded research, development, demonstration, and deployment were

identified as measures to help carbon capture and other low and zero-carbon

dispatchable energy resources participate cost-effectively in electricity markets,”

Crabtree added.

The report also noted that at the regional level, changes to regional grid operators’

market rules that value both grid capacity and emissions reductions would better

recognize the many benefits of all dispatchable low and zero-carbon resources on the

system. In addition, states could consider expanding existing renewable portfolio

standard policies to include energy from low and zero-carbon nonrenewable generation

and look at the potential for developing separate low-carbon generation standards or


“Implementing more cohesive and comprehensive polices that encompass all low and

zero-carbon generation options, including market rules, incentives, portfolio standards,

and other measures will help optimize electricity system benefits for everyone by

providing an affordable and reliable power supply while reducing emissions,” Scott




Media Contacts:

Brad Crabtree

701-830-0302 (call or text)

Doug Scott

815-315-2115 (call or text)