Bank of America bets on carbon capture with big tax-credit deal

illuminem summarizes for you the essential news of the day. Read the full piece on The Wall Street Journal or enjoy below:

🗞️ Driving the news: Bank of America is investing $205 million in tax credits from Harvestone Low Carbon Partners, marking one of the largest-ever investments in carbon capture
• The deal is part of the 2022 climate law’s push to boost carbon capture technology through increased tax credits
• Harvestone's North Dakota ethanol plant, operational since October, captures over 200,000 metric tons of CO2 annually

🔭 The context: Carbon capture has a troubled history, facing technical and financial challenges, but it's being revived as a tool to decarbonize industries that can’t easily switch to renewable energy
• The tax-credit model reduces financial risk, attracting investors like Bank of America, which sees long-term potential despite uncertainties
• Ethanol plants, like Harvestone's, are considered ideal for carbon capture due to the ease of storing CO2 emissions

🌍 Why it matters for the planet: Carbon capture technology plays a critical role in reducing emissions from industries that are hard to decarbonize, helping to mitigate climate change
• With proper investment, it can accelerate the transition to a lower-carbon economy

⏭️ What's next: Harvestone plans to develop two more carbon capture projects, aided by this funding. If clean-fuels subsidies prove more lucrative, they could switch to those credits in future deals

💬 One quote: "There has to be an element of trying to address the emitters that are in the market today and helping them decarbonize," said Noah Zerance of Bank of America

📈 One stat: Harvestone’s plant captures over 200,000 metric tons of CO2 annually—equivalent to emissions from about 42,000 gas-powered cars

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