Publicly traded carbon capture companies8/23/2023 Now, these statements should be taken with a grain of salt, as most of these companies have done little to support the actual enactment of a carbon tax and generally continue to lobby against such legislation. Interestingly, a number of large oil companies, including Equinor ( NYSE: EQNR), Exxon Mobil ( XOM), Royal Dutch Shell ( RDS.A, RDS.B), BP ( BP), Total ( TOT), Chevron ( CVX), and Occidental Petroleum ( OXY), have publicly stated, in one way or another, that they support a theoretical carbon tax. ![]() Unless CO 2 becomes an important feedstock in some industrial process, the potential for the CCS industry is essentially entirely dependent on the institution of a carbon tax. Nevertheless, there are a number of publicly traded companies operating in the general realm of carbon capture and storage (CCS). By most measures, the industry barely exists, making it difficult to evaluate, and even more difficult to invest in. The industry I will attempt to assess is the capture and storage of carbon dioxide. Therefore, I hope this article will be of use to all investors, regardless of their beliefs regarding global warming. However, the goal of this article is not to convince readers whether carbon emissions are a problem, but rather to assess the investment opportunities that may arise from efforts to bring atmospheric CO 2 concentrations to lower levels. Personally, I believe human combustion of fossil fuels is the driving force behind the rise in CO 2 concentrations, and I believe it is a serious issue. I will assume anyone reading this article is familiar with global warming and the theory that combustion of fossil fuels leads to an increase in warming. Thus, as greenhouse gas concentrations increase, the capacity of the atmosphere to absorb and reradiate heat increases, leading to a warming of the planet. These gases then reradiate the heat back into the atmosphere, leading to warming of the planet. While much of this infrared heat escapes into space, a portion of it is absorbed by the greenhouse gases in the atmosphere. The planet then absorbs and slowly radiates this heat in the form of infrared light back into the atmosphere. As solar radiation hits the earth, about half of it passes through the atmosphere and strikes the surface of the planet. Greenhouse gases warm the planet by retaining heat. Without greenhouse gases, life may not be exist on Earth, as the planet's average temperature would be near 0 degrees F, instead the current 59 degrees F. In fact, carbon dioxide plays an important role on earth as a greenhouse gas. In low concentrations, carbon dioxide (CO 2) is, for the most, a harmless gas. The following reaction shows the combustion of methane: CH 4+ 2O 2 2H 2 O + CO 2. Image 1: Historical fossil fuel consumptionĪs fossil fuels are combusted, they release water and carbon dioxide. Since then, exploitation of fossil carbon has expanded to include natural gas and oil, which, in conjunction with coal, fulfilled the majority of the power generation that has driven several centuries of global economic growth. ![]() As countries industrialized during the industrial revolution, demand for coal grew, as it powered steel production, steam engines, and the heating needs of a growing global populace. ![]() ![]() The turn to fossil carbon began in 16th century Great Britain, when a dearth of wood led the country to begin using coal for heating purposes. Framing the Problem & Market Sizing EstimateĬombustion of fossil fuels has, by in large, resulted in a massive increase in quality of life for humankind.
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