Carbon capture and storage technology represents one of the most powerful tools for decarbonizing heavy industry, power generation, and direct air capture operations across the United States. The enhanced Section 45Q Carbon Capture Tax Credit provides up to $180 per metric ton of captured CO2 for geological storage and $130 per ton for utilization, creating compelling economics for CCS deployment. CBO Financial structures comprehensive financing solutions for carbon capture projects by integrating 45Q tax credit monetization with EPA clean energy programs, Community Development Financial Institutions lending, and New Markets Tax Credit equity. Whether retrofitting existing industrial facilities with post-combustion capture, developing new facilities with integrated capture technology, or deploying direct air capture systems, sophisticated financing structures can transform project economics and enable large-scale carbon removal across the United States and its territories.
Federal Financing Programs for Carbon Capture Projects
Multiple federal programs provide essential capital for carbon capture infrastructure:
The 45Q Carbon Capture Tax Credit offers substantial incentives for carbon dioxide capture and permanent storage, with credits available for twelve years from project commencement. The Inflation Reduction Act significantly enhanced 45Q values and eligibility, making CCS economically viable for power plants, industrial facilities, and direct air capture operations. Tax credits can be monetized through direct pay, transferred to third parties, or structured as tax equity partnerships.
The National Clean Investment Fund (NCIF) recognizes carbon capture as critical climate mitigation infrastructure, providing EPA National Clean Investment Fund resources for capture equipment, compression systems, pipeline infrastructure, and geological storage site development. These EPA-backed facilities offer construction loans, credit enhancements, and term debt designed for capital-intensive carbon management projects.
The Clean Communities Investment Accelerator (CCIA) deploys capital to projects that reduce industrial emissions in communities disproportionately impacted by air pollution and environmental hazards. Through clean communities investment accelerator financing programs, community lenders can support carbon capture projects that deliver local air quality improvements alongside global climate benefits.
For carbon capture facilities located in qualified low-income communities or economically distressed industrial regions, new markets tax credit financing provides substantial equity that can be layered with 45Q tax credits, creating powerful blended financing structures that improve project returns while supporting regional economic development and just transition initiatives.
Who Can Access Carbon Capture Financing
CBO Financial structures carbon capture project financing for diverse industrial applications:
Power Generation Facilities, including natural gas combined cycle plants, coal-fired power stations, and biomass energy facilities seeking to continue operations while achieving net-zero or carbon-negative emissions, can access financing that accounts for existing infrastructure, regulatory compliance, and evolving electricity market structures.
Industrial Emitters such as cement plants, steel mills, refineries, chemical manufacturers, and hydrogen production facilities with concentrated CO2 streams can utilize community development financial institution lending combined with tax equity to finance post-combustion capture retrofits or integrated capture systems.
Ethanol and Biofuel Producers generating relatively pure CO2 streams during fermentation processes represent ideal candidates for carbon capture with lower capture costs and potential for carbon-negative fuel production through geological storage of biogenic carbon.
Direct Air Capture Developers deploying technology that removes CO2 directly from ambient air can access specialized financing for modular capture facilities, renewable energy integration, and geological storage infrastructure required to achieve permanent carbon removal at scale.
CO2 Pipeline and Storage Infrastructure Developers building shared transportation and storage networks that enable multiple industrial emitters to access geological storage reservoirs can structure infrastructure financing with long-term throughput agreements and 45Q credit assignments.
Carbon Capture Project Types We Finance
Our financing expertise encompasses the complete spectrum of carbon capture applications:
Post-Combustion Capture Retrofits that add amine scrubbing or other capture technologies to existing power plants and industrial facilities typically capture 500,000 to 5 million metric tons of CO2 annually, requiring project finance structures that account for operational disruption, efficiency penalties, and integration with existing processes.
Pre-Combustion and Oxy-Fuel Systems integrated into new industrial facilities or power generation projects capture CO2 before combustion or through oxygen-enriched combustion, requiring comprehensive financing for integrated facility development and capture system deployment.
Direct Air Capture (DAC) facilities, ranging from demonstration scale to commercial modules capturing 100,000 to 1 million metric tons annually, require specialized financing that addresses technology risk, energy requirements, and the absence of host industrial facility economics.
CO2 Transportation Infrastruc,ture including pipeline networks, compression stations, and injection facilities that enable carbon capture at s,crequiresuire infrastructure financing structures with dedicated shipper commitments, regulatory approvals, and geological site characterization.
Enhanced Oil Recovery with Permanent Storage projects that use captured CO2 for tertiary oil recovery while ensuring permanent geological sequestration can access financing that accounts for both hydrocarbon production revenue and 45Q tax credit value.
CBO Financial’s Carbon Capture Financing Approach
With specialized expertise in complex industrial decarbonization projects, CBO Financial provides comprehensive advisory services:
45Q Tax Credit Optimization and Compliance evaluates capture technology efficiency, storage permanence verification, monitoring and reporting requirements, and credit tier eligibility to maximize incentive value while ensuring IRS compliance throughout the twelve-year credit period.
Tax Credit Monetization Structuring analyzes direct pay elections for tax-exempt entities and new projects, tax equity partnership structures for developers with insufficient tax appetite, and credit transfer mechanisms to identify optimal approaches for converting 45Q credits into project capital.
Integrated Capital Stack Design combines 45Q production tax credits with EPA clean energy financing, CDFI lending, equipment financing, offtake agreements, and traditional project finance debt to create optimal funding structures that manage technology risks, operational challenges, and long-term storage liability.
Geological Storage Site Evaluation Support coordinates with petroleum engineers, geologists, and regulatory specialists to assess storage reservoir capacity, injectivity, containment security, and long-term monitoring requirements that impact project financing and liability management.
Industrial Integration and Offtake Structuring assists capture project developers in negotiating agreements with host industrial facilities, CO2 purchasers for utilization applications, or pipeline operators that provide revenue certainty supporting project financing.
Carbon Capture Financing Across All U.S. Regions
CBO Financial structures carbon capture project financing throughout the United States, from Gulf Coast industrial corridors to Midwest ethanol production regions and emerging direct air capture deployment areas. Our team understands regional variations in:
- Geological storage reservoir availability, capacity, and regulatory frameworks across sedimentary basins
- State carbon capture incentives, tax credits, and pore space ownership regulations
- Regional industrial clusters with concentrated emission sources and shared infrastructure opportunities
- EPA Class VI injection well permitting timelines and Underground Injection Control program requirements
- Existing CO2 pipeline infrastructure and enhanced oil recovery operations in oil-producing regions
We also serve U.S. territories, including Puerto Rico, the U.S. Virgin Islands, Guam, American Samoa, and the Northern Mariana Islands, where carbon capture technology can enable continued operation of critical power generation and industrial facilities while achieving aggressive decarbonization goals in island environments with limited energy alternatives.
Begin Your Carbon Capture Project
Whether you’re conducting initial capture feasibility studies or ready to finalize construction financing, CBO Financial can accelerate your carbon capture deployment. Our team will evaluate your project’s 45Q tax credit eligibility, identify optimal financing structures, and connect you with capital providers experienced in industrial decarbonization and carbon management projects.
Request a carbon capture project assessment to discuss your CCS financing needs. Our consultants will analyze your facility’s emissions profile, capture technology options, storage site access, applicable incentive programs, and develop a comprehensive strategy to secure capital for your carbon capture investment.