A groundbreaking bipartisan bill introduced in the U.S. Senate proposes significant tax credits for carbon dioxide removal at $130 per metric ton, strengthening current incentives and potentially unleashing a new era in climate technology investment. The revenue potential from this carbon removal tax credit is remarkably compelling. Here's the multiplier effect: each metric ton of biochar production delivers approximately three metric tons of carbon dioxide removal, effectively tripling the base tax credit value. But it gets even better - since one metric ton of biochar can qualify for 2.5 to 3.5 carbon removal credits, the actual revenue from carbon credits could range from $250 to $525 per metric ton of biochar produced ($100-150 × 2.5-3.5 credits). Powerful combination of tax credits + removal credits means that a single metric ton of biochar production could generate total tax-savings & revenue ranging from $510 to $785 when combining both the rCO2 tax credits ($130 per ton of rCO2) and the carbon sequestration credits ($100-150 ton of rCO2) – a game-changing proposition for project economics.
[The concern about double accounting is understandable, but there's a clear precedent that addresses this. Consider the solar power industry in the US, where projects simultaneously benefit from:
Investment Tax Credits (ITC) benefits from the government
Solar Renewable Energy Credits (SRECs) from the market
These two mechanisms coexist because they serve different purposes - ITCs incentivise technology adoption, while SRECs compensate for environmental benefits. Similarly, for biochar:
The $130/ton rCO2 tax credit/benefit is a government incentive to accelerate technology deployment
The $100-150/ton rCO2 carbon credits represent actual market value of carbon sequestration
The biochar industry would follow the same established framework that has successfully driven solar adoption without any double-counting issues. The key is that these are separate accounting systems - one for fiscal incentives and another for environmental markets.
Just as solar projects have thrived with dual benefits for over a decade, biochar projects can legitimately claim both incentives to accelerate climate action.]
The Carbon Dioxide Removal Investment Act, introduced by Senators Michael Bennet (D-Colorado) and Lisa Murkowski (R-Alaska), would create unprecedented opportunities for proven technologies like APChemi's advanced pyrolysis and biochar solutions, which already achieve 15-20% lower emissions than conventional methods.
"This legislation could be the catalyst that transforms carbon removal from a niche technology into a mainstream climate solution," says Suhas Dixit, CEO of APChemi. "With our proven track record of 47 successful pyrolysis projects and over 1.3 million hours of technology performance, we're uniquely positioned to help companies capitalize on these new incentives immediately."
Key Features of the Proposed Carbon Removal Tax Credit:
- $250 per metric ton credit for most carbon removal approaches
- $110 per metric ton for biomass-based capture
- Technology-neutral framework embracing multiple solutions
- Projects must begin construction before January 1, 2035
- 12-year credit period for qualifying projects
- Direct pay and transferability options
- Robust environmental safeguards
Why This Matters Now
The timing couldn't be better for companies seeking to reduce their carbon footprint. Global carbon dioxide emissions hit 35 billion tonnes annually, while plastic waste continues to accumulate at alarming rates. This legislation uniquely addresses both challenges by incentivizing technologies that can handle multiple waste streams while capturing carbon.
APChemi's dual-purpose technology, which can process both plastic and biomass waste while achieving verified carbon removal, exemplifies the kind of innovative solutions the bill aims to scale. Our ISCC Plus certified plants have already demonstrated the ability to meet the strict verification requirements proposed in the legislation.
What Companies Need to Do
Organizations looking to capitalize on these incentives should:
1. Assess their carbon footprint and removal potential
2. Evaluate technology options that qualify for the higher credit rate
3. Begin planning implementation strategies for post-2024
4. Consider partnerships with proven technology providers
The Path Forward
While the bill progresses through Congress, companies don't need to wait to start their carbon removal journey. APChemi's existing technologies already meet or exceed the proposed requirements for:
- Long-term carbon storage (1,000+ years)
- Accurate measurement (±20%)
- Third-party verification
- Lifecycle analysis
"The proposed legislation validates what we've been doing at APChemi for years," notes Dixit. "Our focus on measurable results and sustainable technology puts us ahead of the curve in meeting these new requirements."
Take Action Now
Companies interested in learning how to prepare for these unprecedented incentives can connect with APChemi's experts for a detailed technology assessment. With project development timelines typically ranging from 6-24 months, early planning is crucial for maximizing the benefit of these credits.
APChemi is working with US based value rCO2 chain partners to scale up carbon removal. Contact us to discuss how our proven technologies can help you capture this opportunity.
APChemi is a global leader in pyrolysis and carbon removal technologies, with 12 patents and over 179 million kilograms of waste processed. Our technologies reduce emissions by 20-75% compared to conventional methods.
[1] https://www.qcintel.com/carbon/article/analysis-long-term-biochar-carbon-price-already-below-100-tco2e-say-developers-17670.html
[2] https://www.msci.com/www/blog-posts/outlook-for-the-global-biochar/04633228838
[3] https://cloverly.com/blog/the-ultimate-business-guide-to-biochar-everything-you-need-to-know
[4] https://biochar-us.org/bipartisan-legislation-support-biochar-under-discussion