Berkshire Hathaway, the Warren Buffet owned-company, which is also a major investor in US energy infrastructure and operator of the Cove Point LNG export terminal in Maryland, is trying to support an industry initiative for a legislation to provide additional tax incentives for the development of clean energy projects.
Firstly, according to a report by S&P Global, the company sees those incentives as vital for the further development of clean energy; and technologies like carbon capture and storage; and is more vital for the companies that process shale gas; or the ones that produce liquified natural gas to electricity generation.
Secondly, back in July 26, the company supported a bipartisan US infrastructure bill that would put out around $579 billion in funds to enhance transportation, utilities and other industrial sectors; however, a Berkshire Hathaway energy affiliate said it hopes that additional legislation includes tax incentives for clean energy generation, transmission and energy storage.
Thirdly, the company said, quoted by S&P that, “those incentives should be available to both utilities and energy developers equally; without the impediment of current tax normalization restrictions. A robust competitive landscape helps drive down costs and allows the industry to provide affordable service to customers.”
It also remarked. “We support eligibility criteria that includes emerging technologies like advanced nuclear; and also, other carbon-free generation sources that can be deployed in a cost-effective and reliable manner.”
The company highlighted that it shares president Biden’s plan to reduce GHG emissions.
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Berkshire Hathaway growing its asset portfolio, incluiding storage
According to S&P, a current major hurdle for carbon capture and also underground storage is that projects must be completed first for existing tax credits to kick in. The credits only last for 12 years and are not refundable.
Furthermore, and despite those hurdles, carbon capture and energy storage in the U.S. are booming; as those technologies are a viable option for cutting their carbon emissions; amid the global energy transition toward greater use of clean-burning fuels.
Particularly for Berkshire Hathaway, its portfolio has grown substantially, and currently covers $127,5 billion in assets; including electric and natural gas utilities in the US. The company has also operations in Great Britain and Canada.
Finally, the company became the operator of Cove Point last year; after its acquisition of all Dominion Energy’s gas pipeline and storage assets. Dominion also retains a 50% passive ownership in the liquefaction terminal.