Funding Failure: U.S. Carbon Capture and Fossil Hydrogen Subsidies Exposed
Despite the abundant evidence of carbon capture and fossil hydrogen’s failures, the US subsidizes them to the tune of $12 billion – more than any other country.
Funding Failure: U.S. Carbon Capture and Fossil Hydrogen Subsidies Exposed
Carbon capture and storage (CCS) and fossil hydrogen are the new faces of the fossil fuel industry. They offer Big Oil and Gas cover to continue to extract fossil fuels and poison our air and water while pretending to address the climate crisis. This delays the transition to clean energy necessary to avert climate catastrophe. Instead of subsidizing these failed technologies, the United States must invest in the real solution to the climate crisis: a full, fast, fair, and funded phase-out of fossil fuels.
Key findings:
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- Despite the abundant evidence of these technologies’ failures, the US subsidizes them with more public money than any other country. The US has committed over $12 billion to them over the past 40 years. And that’s just the beginning
- The US has foregone more than $1.3 billion in tax revenue to offer credits to corporations to capture carbon, often used to produce more oil. Laws passed since 2020 could result in $120B+ going to CCS and fossil hydrogen over the next 10 years.
- The Department of Energy has allocated billions to CCS and hydrogen projects in development that will prolong the fossil fuel industry’s lifespan and add toxic pollution to frontline communities already suffering the health and safety consequences. The projects promised the most funding include:
- The Gulf Coast Hydrogen Hub ($1.2 Billion)
- Appalachian Hydrogen Hub ($925 Million)
- Project Cyrpress Direct Air Capture ($600 Million)
- South Texas Direct Air Capture Hub ($500 Million)
The problem? For 50+ years, carbon capture has failed to reduce emissions. Most projects don’t capture the carbon they claim to, and what is captured is overwhelmingly used to extract more oil, increasing pollution. “Blue” hydrogen, or fossil hydrogen, is made by converting gas to hydrogen and, supposedly, capturing the CO2 produced by the process. Far from being a “clean” fuel, fossil hydrogen may emit 20% more than burning dirty gas or coal for heat.
The solution? The US must not waste any more public money on the fossil fuel industry’s smoke and mirrors. Instead, our government must listen to communities and invest in the real solution to the climate crisis: a full, fast, fair, and funded phase-out of fossil fuels.