A new legislative proposal in the United States aims to establish a federal tax credit to incentivise biomass-based carbon removal and storage (BiCRS) - a development that could significantly boost the commercial viability of biomass projects focused on carbon sequestration.
Introduced by Senator Martin Heinrich of New Mexico, the Carbon Removal and Emissions Storage Technologies (CREST) Act seeks to formally recognise the role of biomass in the broader carbon removal landscape.
If enacted, the legislation would create a dedicated tax credit for technologies that capture and permanently store biogenic carbon emissions, either through geological storage or long-lived products such as biochar and biocarbon.
This proposed tax credit is modelled on the existing Section 45Q incentive in the US tax code, which supports carbon capture from fossil-based sources.
However, CREST would tailor its approach specifically to support carbon removal solutions, including those derived from biomass combustion, gasification and pyrolysis - areas often overlooked by current policy mechanisms.
If passed, the CREST Act would provide financial certainty for biomass project developers looking to invest in carbon capture and storage infrastructure.
It would also enhance the bankability of BiCRS projects by reducing reliance on voluntary carbon markets alone.
Senator Heinrich highlighted the importance of innovation in reaching climate goals, stating: "To meet our net-zero targets, we must accelerate carbon removal technologies and build the infrastructure to store those emissions securely. The CREST Act ensures that biomass-based solutions have the support they need to scale."
The proposed bill is currently under consideration and has drawn interest from both environmental groups and clean energy investors.
US Bill proposes tax credit to advance biomass carbon removal and storage
