Carbon Captured #2 : Socialising Cost, Privatising Profits


Image Credit : Michael Sterner

Carbon dioxide is a fuel. And I don’t mean plant food.

As petroleum oil and Natural Gas production hit peaks that cannot be surpassed, and the world begins to realise that depletion is inevitable, the world’s energy producers will turn to alternatives, including various forms of fuel and gas made from carbon dioxide, chemically adjusted with hydrogen derived from renewable resources.

It seems to me hypocritical for the large oil and gas companies to pitch for public funds to support their investment in Carbon Capture and Storage. Why ? Because this public funding will get converted into private profits the day they start to pump the carbon dioxide back out of storage to make Renewable Gas.

From a personal perspective, I find the argument for public financing of Carbon Capture and Storage particularly toxic when it is proposed to raise the revenue by placing an artificial price or tax on carbon. This would mean that the taxpaper-consumer pays for the emissions burden of hydrocarbon fossil fuel energy, and then gets to pay again for alternative energy, produced using the stored waste gases that they already paid for.

Charge energy customers twice. What a great bailout for fossil fuels !

I suspect that the only reason that Royal Dutch Shell and BP admit to climate change is so they can push their Carbon Capture and Storage schemes – bid tendering for public subsidy.

Forget the subsidies currently in place around the world for wind and solar power. Global carbon finance pushed at Carbon Capture and Storage will be of a much higher order of expenditure.

If the oil and gas companies want to build Carbon Capture and Storage facilities – let them pay for them themselves. After all, in many cases, they have been able to economically justify them by using carbon dioxide pumping to increase oil production – what’s known as Enhanced Oil Recovery.

Or if they insist on public finance for geo-sequestration of carbon dioxide in Carbon Capture and Storage projects, let them give us the carbon dioxide back for free when we need it for Renewable Gas production in the coming decades.

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