City seeks Department of Ecology funds to study carbon capture at Spokane waste-to-energy facility

City staff described a feasibility study to assess carbon-capture technology at the Spokane waste-to-energy facility, funded through a Department of Ecology interagency agreement using a $650,000 legislative proviso.

Chris (staff) explained that Carbon Quest — a Spokane Valley carbon-capture company that applied for the proviso — already supplied a scope and, because of tight timelines and the project’s technical familiarity, staff are proposing a market‑condition procurement exemption and a contract with Carbon Quest to deliver the study. The study will examine projected emissions, footprint and power requirements, capital and operating costs, regulatory and permitting needs, markets for captured CO2 (industrial use, beverage-grade CO2 or geologic sequestration), and applicable tax incentives.

Timing and constraints: The Department of Ecology funding originates from the Climate Commitment Act and was subject to procedural limits after Initiative 2117; the proviso could not be implemented before January 1, 2025. The study must be completed and payment requests processed by the end of the fiscal year (June 30, 2025). Staff said that the subsequent capital investment for a full carbon-capture installation would be significantly larger if the study supports proceeding — staff referenced a rough capital estimate in briefing materials of $50 million to $70 million but emphasized the study is intended to establish accurate cost, revenue and permitting estimates.

Questions and context: Council members asked whether the timeline could have been accelerated and whether ongoing operating costs would be large; staff replied the interagency agreement timing and the proviso language constrained start dates and that the market analysis and revenue opportunities will be part of the study. Staff also noted the potential for revenue streams depending on end use of captured CO2 and tax incentives.

Public/stakeholder presence: Staff noted that Carbon Quest representatives (founder Dave Curry and Mike Lucius, vice president of business development) were available to answer technical questions.

Next steps: Council is asked to approve an interagency agreement with Ecology, a market‑condition exemption to allow a direct contract with Carbon Quest, and a contract that would pass on Ecology funding to Carbon Quest to complete the study by the June 30, 2025 deadline.