The operator of the proposed trans-Alaska natural gas pipeline could earn more than $285 million per year from federal tax credits for storing carbon dioxide underground. The Alaska Department of Revenue estimates the 45Q credits could total $7.4 billion over 12 years. Carbon dioxide makes up 5% to 18% of North Slope natural gas and must be removed before liquefaction for export. The pipeline project, known as Alaska LNG, would run 807 miles from the North Slope to an export terminal at Cook Inlet. A gas treatment plant would separate CO2 and inject it into underground reservoirs at about 7 million tons per year. The tax credits are available for injection plants built before 2031 and can be sold to other companies at 80-90 cents on the dollar. Alaska also passed a law in 2024 allowing the state to charge companies for using underground pore space for CO2 storage. The state-owned Alaska Gasline Development Corp. owns 25% of the project, with developer Glenfarne holding the rest. The total project cost could reach $54.5 billion.
