Carbon Sequestration: What Is It and How Can It Help Industrial Operators Reduce Their Carbon Footprints?

Carbon sequestration is an essential step toward transitioning to a low-carbon economy. Here’s how insurance can help support these projects.

International authorities and climate scientists agree: To prevent the worst effects of global climate change, society as a whole needs to limit warming to less than 2 degrees Celsius and achieve net-zero carbon emissions by 2050.

Drastic steps need to be taken to achieve these goals. But some industries may not be able to adapt quite so quickly. Industrial facilities may not be able to completely eliminate their carbon emissions entirely by 2050.

That’s where carbon sequestration comes in. Carbon sequestration involves capturing and securing atmospheric carbon dioxide from power plants and industrial sources and storing it in the earth. It could play a pivotal role in helping these industries drastically reduce their emissions while they transition to 100 percent clean energy.

“Where carbon sequestration comes into play is really as part of that story of transition. It’s not necessarily an end point, but it’s a way of getting to where we have to go,” said Max Horn, environmental product line manager (SPILLS), Liberty Mutual

“It’s not that carbon sequestration prolongs fossil fuels. It’s that the process enables that transition by creating a way today for these companies to get to a carbon-neutral situation through carbon sequestration while at the same time moving toward greener sources of energy.”

What Is Carbon Sequestration?

The idea of capturing carbon from the flue gas of industrial facilities has been around since 1938, when the first carbon-capture system was proposed, according to the Columbia Climate School. Over three decades later, the first large-scale efforts to inject liquified carbon into the earth occurred in 1972 at Texas’ Sharon Ridge Oil Field.

Max Horn, environmental product line manager (SPILLS), Liberty Mutual

In the intervening years, the technology was primarily used during enhanced oil recovery. Carbon emissions from industrial facilities were captured, then pressurized and injected into oil and gas fields to squeeze out more of the fuel sources.

“It’s an old technology, but it’s also a new technology in essence. Permanent sequestration is a newer concept,” Horn said.

With permanent sequestration systems, industrial facilities take the captured carbon and, instead of emitting it through gas flues, they inject the liquefied CO₂ into porous rocks to be stored in the earth in perpetuity.

Sequestration needs to last at least 1,000 years to be considered permanent. But since carbon fortifies as time goes by, it will likely last indefinitely. The U.S. has the capacity to store about 3,000 metric gigatons of carbon dioxide using this method, per the U.S. Geological Survey.

Horn said that industries like ethanol and concrete production, which don’t have an immediate path to decarbonization, can vastly reduce their emissions by employing carbon sequestration, and at low costs. Geological sequestration costs between $0 and $100 per ton.

“There are a number of industries that cannot immediately decarbonize because of the processes that they require,” Horn said.

“You’re taking industries that cannot immediately switch over to an alternative source of energy, such as wind or solar, and you’re allowing them to continue to operate in the short term in a way that is not producing the massive amounts of carbon dioxide that they’re currently emitting.”

Benefits of Carbon Sequestration

Beyond reducing a business’s overall emissions, carbon sequestration comes with numerous benefits for industrial facilities.

Businesses that practice carbon capture and sequestration are eligible for the 45Q tax credit, which increased in value from $50 per ton of captured CO₂ to $85 as a result of the Inflation Reduction Act, Forbes reported. The IRS released guidance last year about who can participate in the program and clarified what could cause a participant to lose the credit. Horn believes this will increase participation in carbon sequestration programs.

“You’ve increased the value of the credit, and you’ve also increased the opportunity and clarified the opportunity. And so, right now is the point where there was a tremendous land grab for carbon sequestration sites,” Horn said.

“A lot more businesses see that this is a real opportunity and something that people could put extensive and very expensive investment into.”

Increased corporate focus on environmental, social and governance factors is another boon for carbon sequestration projects. Firms with industrial facilities are looking to assure the public that they’re invested in the fight against climate change, and these projects can help them meaningfully reduce their emissions.

It can also be a driver of new business. State and federal contracts may favor low-carbon industrial producers. If they’re awarding a contract, a firm with carbon sequestration efforts in place could win out over a firm lacking those tools.

“If you’re creating concrete and you want to sell into a state like California that has favorable contract processes for low-emission industries or low-emission businesses, that creates an opportunity for your market,” Horn offered as an example.

Site Selection Tax Liability and Other Potential Exposures

Carbon sequestration may have environmental and financial benefits, but there are still risks companies need to consider before taking on a project.

Diverting CO₂ emissions into the earth requires years of investment. Plants need to be retrofitted to capture carbon and liquify it. Then, pipelines need to be built to transport the carbon to the sequestration site, since most facilities won’t be sitting atop porous ground where they can pump their emissions directly into the earth.

If this process isn’t completed correctly, or if a company accidentally causes seismic activity during the process of injecting carbon into the earth, they could disrupt previously stored carbon, releasing it back into the environment. They could also lose their tax credits.

Site selection is key to reducing these risks. Insureds considering carbon sequestration projects for their companies should choose sites with porous rocks like sandstone and limestone. Sites that have previously been oil fields have different risks than those that have not been, Horn said, since hydrocarbons could still be in the rocks.

“In areas like in old oil fields, there could be remaining hydrocarbons or other material like desalinated water, things that are not meant to come up from underground. As you pump carbon in, you could pressurize and force those to the surface,” he explained.

The Role of Insurance

Insurance can help reduce some of these concerns in three important ways.

First, carriers can help companies and their brokers understand the risk management implications of carbon sequestration. Second, they can provide risk engineering services highlighting the impact of the transition on their current operations.

Finally, insurers can provide financial protection as companies undertake these projects. Contractors’ environmental liability policies can insure the process of retrofitting the plants. Site pollution liability and environmental protection coverages can protect companies in case CO₂ or other pollutants are released during the sequestration process.

“Underground sequestration is not new,” Horn said. “The pollution market is very capable of handling this exposure, from risk engineering to strategic risk management.”

Financial products can also protect the cost of losing a tax credit: “You have a financial loss — not just a cleanup cost — because the cleanup being direct carbon recapture of that carbon dioxide is unlikely. So it’s a financial loss, and that’s something that we can cover,” Horn said.

“The release of carbon dioxide that has been sequestered is essentially a pollution incident. And so, we have a modified trigger to also cover that clawback of credits.” &

Courtney DuChene is a freelance journalist based in Philadelphia. She can be reached at [email protected].

Dangerous Jobs: Why Health Screenings Are Critical to Protect Firefighters

The implementation of an annual wellness-fitness program can improve firefighter fitness and ultimately help save lives.

By: Concentra | May 1, 2024

It’s impossible to ignore the great risks taken by firefighters. They experience injuries in large numbers and there is significant loss of life. Almost half of this loss of life is due to cardiovascular events. Additionally, studies suggest that there is an increased risk of the development of certain cancers.

These brave men and women put their lives on the line to rescue and protect others. They won’t hesitate to run into a burning building while wearing heavy gear and carrying heavy equipment in order to save lives.

“Their job requires a combination of performance, mobility, strength and endurance, and it often exposes them to environmental hazards and psychosocial hazards as well,” said Dr. Latha Brubaker, senior vice president of medical operations at Concentra.

“Being a firefighter can be physically difficult, it can be dangerous, and the impact of fighting fires and rescue can have a behavioral health impact, as well.”

Given the physical and emotional challenges associated with their jobs, firefighters need to be in top physical condition. Regular holistic health screenings and preventive conditioning programs can help protect these heroes, ensuring they have long careers serving their communities.

A Dangerous Job

Dr. Latha Brubaker, Senior Vice President Medical Operations at Concentra

To understand the physical and mental health threats firefighters face, it’s important to examine how firefighting exposes them to a number of different risks. Their job is physically taxing. They must wear heavy gear to protect them from high-temperature exposure while rescuing people and pets. They have to climb ladders and stairs during rescue operations. Although wearing masks to limit these exposures, firefighters can inhale smoke and be exposed to harmful chemicals and environmental toxins, increasing their risk of certain cancers.

“Firefighters have to climb ladders and stairs, all the while hauling very heavy and unruly fire hoses and wearing very heavy equipment and PPE,” Brubaker said.

While completing these physically demanding tasks, firefighters can inhale smoke and other environmental toxins, increasing their risks of certain cancers. A study of 30,000 firefighters spanning from 1950 to 2009 found that firefighters were 9% more likely to be diagnosed with cancer and 14% more likely to die from the disease than the general population.

Outside of the physically taxing elements, firefighters often work in distressing circumstances. There may be thoughts of the personal risks taken to save others. They witness significant injuries and loss of life.

All of these situations have the potential to be emotionally distressing for firefighters. That’s why a number of states — including California, Tennessee, Florida and Georgia — have passed or are considering passing laws that include PTSD benefits under workers’ comp coverage for firefighters.

“We’ve really doubled down on our commitment to behavioral health, and we’ve gone so far as to partner with some third-party resources that have expanded our ability to provide behavioral health support,” said Chris Studebaker, senior director of onsite preventive services at Concentra.

Protecting Firefighter Health

Chris Studebaker, Senior Director of Onsite Preventive Services at Concentra

Unlike in other professions, it’s hard to reduce the number of physical and environmental hazards a firefighter faces on the job. Yes, PPE can go a long way in protecting firefighters from burns and other injuries, but the physical demands are also extreme. Firefighters are wrangling heavy fire hoses to stop the damage. In addition, they are often lifting people and maneuvering in confined or challenging spaces.

In order to make sure firefighters are up to the task, many departments conduct annual physical health assessments so that they can be certain their firefighters are physically and mentally prepared for the job. Medical personnel follow the guidelines provided by the National Fire Protection Association (NFPA) Standard 1582 on Comprehensive Occupational Medicine Programs for Fire Departments which helps them determine if there is a condition present that may prevent a firefighter from performing their essential job functions.

The Joint Labor Management Wellness-Fitness Initiative, comprised of two major fire service organizations, worked to develop a comprehensive wellness-fitness program. Based on this initiative, NFPA developed standards regulating these programs. This resulted in the suggestion of adding cancer screening, fitness assessments, and behavioral health screening to the periodic health assessments of firefighters.

“Some fire departments are now asking us to perform cancer screening,” Brubaker said. “Cancer screening recommendations are made by the US Preventive Services Task Force, for example, and are based on a systematic review of scientific evidence published in peer-reviewed journals. When determining the appropriate screening tests, it is important to review the USPSTF recommendations with the understanding of the potential additional risks amongst firefighters for certain cancers.

Sleep health is another area of issue in the fire service due to the 24 or 48-hour shift schedule and the mental strain and stress of the job.

Beyond screenings, firehouses can opt to partner with providers of on-site health services, including physical therapists who can work collaboratively with employers to develop and implement injury-prevention programs. Known as “tactical athlete programs” because their rigor is like that of the training a pro athlete would undergo, these solutions can help catch injuries before they become severe and help keep firefighters’ bodies functioning optimally to enable them to perform their job.

Wearable technologies, too, are likely to play a role in keeping firefighters safe in the future: “We’re seeing the use of wearable tech sensors that look at environmental exposures and heat. And now the technologies can even track their sleep health” Studebaker said. “I think the future of wearable tech is going to shift away from discrete individual devices and more towards garment-based sensors.”

A Trusted Partner for Firefighter Physicals

The physical rigor required to fight fires combined with the emotional stressors present in the job mean that employers need to put extra care into guarding firefighters’ health and safety. Firefighters should undergo regular physical exams, and Concentra is just the partner they need to conduct these physicals.

Concentra clinicians perform examinations, imaging, and lab tests that meet the National Fire Protection Association standards.

Firefighters who undergo these examinations will complete a physical fitness test that assesses their lifting, pushing, pulling, carrying, climbing and other abilities. These kinds of assessments can guard against musculoskeletal injuries common in the industry.

Should an injury occur, the clinician utilizes a conservative treatment approach, with an emphasis on active rehabilitation. Since firefighters are in safety sensitive positions, opioids are usually avoided.

“Musculoskeletal injuries can be managed without the use of opioids,” Brubaker said. “Our approach is a conservative one with the use of physical therapy, when appropriate, and anti-inflammatory medication, if needed. We try to avoid prescribing opioids. Opioids are typically unnecessary.”

A Concentra clinician will perform lab tests including a complete blood count, comprehensive metabolic panel, lipid panel, and urinalysis as well as TB tests. They will do alcohol and drug tests. They will perform audiograms, pulmonary function tests, chest X-rays and EKGs. They will complete a cardiovascular risk assessment and depending on age and the level of risks, a stress test will be performed either at the onsite clinic or a cardiology office.

“It’s important for us to make sure in the first place that they’re healthy from a cardiovascular perspective, that they’re healthy from a respiratory perspective,” Studebaker said.

Behavioral health screening and cancer screening can be performed at Concentra Onsite Health clinics. Clinicians can conduct screenings for six cancers firefighters are at elevated risk for: colorectal, prostate, skin, blood, thyroid and bladder.

Concentra Onsite Health clinicians assess firefighters’ health holistically — something that is essential for a job that is both physically and emotionally taxing. By providing whole-person care, Concentra Onsite Health aims to guard firefighters’ health so that they can come home to their families after a day of protecting others.

“Most firefighters are very passionate about the work they do. They are vital members of their community and take risks every day to keep these communities safe. The work of a firefighter can have an adverse impact on their long-term health and well-being. It is equally vital that we take care of our firefighters and do what we can to improve their overall health.”

To learn more, visit: https://www.concentra.com/

This article was produced by the R&I Brand Studio, a unit of the advertising department of Risk & Insurance, in collaboration with Concentra. The editorial staff of Risk & Insurance had no role in its preparation.

Concentra® is America’s leading provider of occupational medicine, delivering work-related injury care, physical therapy, and workforce health services from nearly 520 Concentra medical centers and more than 150 onsite clinics at employer locations nationwide.