Broader tax breaks in the recently enacted Inflation Reduction Act of 2022 (IRA) will entice more sectors of the U.S. economy to embrace carbon sequestration, according to Denbury Inc.

Denbury

The independent, a carbon dioxide (CO2) pipeline and enhanced oil recovery specialist, is positioning itself for anticipated market growth, management said during the recent second quarter earnings call.

“I mean, number one, I think that you will see a lot of new industry coming in and just the total market getting much bigger,” Denbury’s CEO Chris Kendall told analysts.

The far reaching legislation became law shortly after the Plano, TX-based producer reported 2Q2022 earnings. A major IRA provision is the expansion of Internal Revenue Service Section 45Q tax credits for carbon capture,...