The Board of Investment (BOI) has, as of November 2021, adjusted two measures to lead eco-friendly investments.
The first measure now provides the conditions to use refrigerants to reduce environmental impacts. Refrigerants may be used at cold storage facilities and in cold storage transport operations.
Figure 1. Incentives for activities involving refrigerants
The BOI included incentives for natural refrigerants, which are naturally occurring substances (e.g., hydrocarbon and carbon dioxide). They do not damage the air or create greenhouse gas. They are meant to save more energy than synthetic refrigerants. Low environmental impact refrigerants cannot be categorised as Chlorofluorocarbons (CFCs), hydrochlorofluorocarbons (HCFCs). For the Hydrofluorocarbons (HFCs) category, the Global Warming Potential (GWP) value must be below 3,000 to be eligible for applications.
The second measure is designed to encourage the implementation of Carbon Capture, Utilisation, and Storage (CCUS) technologies for industrial use. CCUS technology is an important emissions reduction technology that a business can apply to energy systems. CCUS technology includes a suite of technologies that capture CO2 from large point sources including power generation or industrial facilities that use either fossil fuels or biomass for fuels. The CO2 can be captured and stored onsite or transported by pipeline, ship, rail, or truck, to be used or injected in deep geological formations, which permanently store the CO2.
Figure 2. Carbon Capture, Utilisation, and Storage (CCUS) technologies.
Natural gas separation plants are facilities that are now eligible under the BOI incentives, when they implement CCUS technology. By implementing the CCUS technology, it can receive a CIT exemption of 8 years. In general, when a business does not implement CCUS technology, it can still benefit from a CIT exemption of 5 years.
When it comes to petrochemical production, the BOI adjusted the conditions for CIT. When the activities include implementing CCUS technology, the business can benefit from CIT exemption of 8 years. The general case without the implementation of CCUS technology remains 5 years.