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Marathon Capital Advises CapturePoint on 12-Year Forward Sale of 45Q Tax Credits

March 18, 2024

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  • Matt Shanahan

    Managing Director

  • Greg Andiorio

    Director, Tax & Structuring

  • Wayne Chomitz

    Director, Tax & Structuring

Marathon Capital, LLC (“Marathon Capital”) is pleased to announce it has advised CapturePoint LLC (“CapturePoint”) on its private Section 45Q tax credit transfer transaction for carbon dioxide (CO2) captured at the company’s Arkalon facility near Liberal, Kansas and utilized for Carbon Dioxide Enhanced Oil Recovery (CO2-EOR) operations in the panhandles of Oklahoma and Texas. Marathon Capital acted as exclusive financial advisor to CapturePoint on the transaction.

Marathon Capital arranged the transaction, advised on structuring and execution, and provided support throughout the due diligence and documentation process.

The CapturePoint Arkalon CO2 capture facility has the capacity to capture 250,000 metric tons of CO2 annually from nearby bio-ethanol production. The Arkalon CO2 capture facility was placed in service in April 2023, generating Section 45Q tax credits for capturing and utilizing industrially sourced CO2 emissions. The tax credit transfer agreement between CapturePoint and the buyer includes placement of 100% of the 45Q tax credits generated by the Arkalon facility for a total of 12 years.

"Our entire team appreciates the financial acumen and exceptional service that Marathon Capital provided as it guided the Section 45Q tax transaction for CapturePoint's Arkalon CO2 capture facility to a successful closure," said Tracy Evans, CEO of CapturePoint LLC. "With the support of Marathon Capital and our private investors, CapturePoint is defining the leading edge of carbon management innovation in the United States."

“It was a pleasure to support CapturePoint on one of the industry’s first Section 45Q tax credit transactions for their Arkalon CO2 capture facility. This transaction was particularly innovative in that it leveraged the transferability option under the IRA to provide 12 years of tax credit monetization certainty, versus the 5 years provided under direct pay. Congratulations to the CapturePoint team on this significant closing.” – Matt Shanahan, Managing Director, Marathon Capital.

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