By: State Representative Mike Johnson
Louisiana’s leadership is acutely aware of the critical crossroads at which our state stands today, particularly concerning environmental sustainability and economic development. At the heart of this moment is the advancement of new technologies in the energy sector, including carbon capture and storage (CCS) technology and hydrogen — tools that are not only pivotal for bolstering our economy but for protecting and harnessing our state’s important natural resources.
Louisiana’s unique position, with its extensive industrial infrastructure and geological formations conducive to carbon storage, makes it an ideal candidate to lead the nation in the CCS sector. This technology, which involves capturing carbon dioxide emissions from sources such as power plants and industrial facilities before they reach the atmosphere, is more than just an environmental safeguard; it’s a proven pathway to substantial economic benefits. By investing in CCS, we can create new jobs, sustain our traditional industries, and simultaneously transition them towards more sustainable practices.
The economic implications of CCS are vast. It’s estimated that the technology could create thousands of jobs, ranging from construction and engineering to ongoing facility operations. These are not just jobs but careers that offer long-term stability and growth. One company in my backyard, CLECO, is advancing with a $900 million investment to build a CCS facility in Central Louisiana. Thousands of constructions jobs are on track to be created, and permanent jobs too.
Moreover, CCS technology is integral to the development of blue hydrogen. When hydrogen is produced from natural gas and is paired with carbon capture, the process becomes nearly emission-free. This coupling represents an important step towards cleaner energy.
Louisiana sits at the crossroads of our political future. Our state’s application for Class VI well primacy, which is set to regulate the injection of carbon dioxide into deep underground wells for long-term storage, is poised to be approved by the EPA in the coming months. As the EPA’s leadership recently noted, “we expect to make a determination on the Louisiana application for primacy by the end of this year.”
The adoption of this regulatory framework will not only streamline the deployment of CCS projects in Louisiana but also ensure that we stay at the forefront of this industry. This regulatory update couldn’t have come at a better time. The recent election of Jeff Landry as our state’s next Governor presents an opportunity to position our state as an energy leader of the future through our focus on CCS.
The financial viability of advancing with these critical projects hinges on both our ability to secure primacy, and on the federal government’s guidance related to crucial 45V tax credits in the hydrogen space.
Now is the time for Louisiana to receive the permissions, and tax guidance, that we need to advance with these critical projects. As we stand on the brink of adopting Class VI well primacy, we must seize this opportunity to lead the nation in CCS deployment. The dual benefits of economic growth and environmental protection offered by CCS make it an indispensable strategy for Louisiana’s future. By embracing this technology, we can create a sustainable, prosperous future for our state where economic development and environmental stewardship go hand in hand.
Michael T. Johnson
State Representative, District 27
2757 Hwy. 28 East
Pineville, LA 71360
P: (318) 487-5377
E: hse027@legis.la.gov