Senate committee backs $10-per-ton stimulus to steer Wyoming CO2 to enhanced oil recovery

The Wyoming Senate Committee of the Whole approved legislation aimed at removing a federal market bias that favors permanent geological sequestration of carbon dioxide over its use in enhanced oil recovery (EOR).

Sponsor Senator Fred Rothfuss said the measure would give Colorado capture projects an incentive to put Wyoming‑sourced CO2 into EOR by providing a $10-per-ton state stimulus on top of existing federal 45Q benefits. “This legislation is intended to mitigate a market bias that was put in place by the Feds when the 45Q legislation was put forward,” Rothfuss said on the floor.

The bill directs the Wyoming Energy Authority to administer a $10-per-ton payment for Wyoming-captured CO2 that is used in in‑state EOR projects that already qualify for the 45Q federal tax credit. Under the bill the stimulus fund would be seeded by a $10 million transfer from the Legislative Stabilization…