A new amendment has been proposed by U.S. Senator Sheldon Whitehouse (D-RI) that would provide a tax credit for technologies that are able to convert CO2 into products such as advanced biofuels, animal feed and biochemicals. The proposed language would create a new utilization tax incentive to complement section 45Q of the tax code, which already provides credits for the adoption of carbon capture and sequestration technologies.
“We thank Senator Whitehouse for his leadership and recognition that a number of innovative technologies are coming of age that can help the United States achieve substantial, permanent reductions in CO2 while producing valuable commodities,” said Matt Carr, executive director of the Algae Biomass Organization in response to the amendment. “Carbon utilization technologies are attracting broad congressional support, and common-sense policy like this can play a key role in accelerating how quickly algae and other utilization technologies will improve our energy and economic security.”
Algae cultivation is one viable way to transform CO2 into products such as advanced biofuels or biochemicals and products used in industries such as the health and beauty industries. In addition, the Algae Biomass Organization says algae companies across the U.S. are working to commercialize new technology advances that also convert CO2 to fertilizer, plastics and feed ingredients.