The long wait for US Class VI permits

The US is set up for success in developing deep geologic CO2 storage. It has the right geology, defined pore space rights and legislation to allow for underground CO2 injection (in most areas). It has regulations for how to inject, store and monitor projects. And, it has a ‘carrot’ incentive for companies in the form of 45Q tax credits. But there is a bottleneck - Class VI injection permitting. Receiving an injection permit can be a long wait. Though the goal timeline for the main issuer of permits, the US Environmental Protection Agency (EPA), is 24 months, we calculate average decision time to be around 2.5 years or more. Lengthy waits for permits lead to pushed back FIDs and longer waits for projects to move forward, risking the ambitious project storage capacities estimated over the next few years.