Summit Carbon Solutions is moving forward with its plan to build the world’s largest carbon capture and sequestration project. This multi-billion dollar investment will connect ethanol biorefineries across five states in the upper Midwest, Iowa, Minnesota, Nebraska, North Dakota, and South Dakota, capture the carbon dioxide emissions from these facilities, compress these gases into a near liquid form, and transport it to North Dakota to be permanently and safely stored more than a mile underground.&nbsp;By capturing and permanently storing carbon dioxide emissions from partner ethanol biorefineries, Summit Carbon Solutions will cut the carbon footprint of their manufacturing process in half. In the process, this project will allow ethanol plants to access and sell their product at a premium in the growing low carbon fuel markets such as California, Oregon, Washington, and more. This shift will enhance the long-term economic viability of ethanol and maintain a strong market for corn growers who currently sell approximately half of their crops to local ethanol plants. &nbsp;“This project will be transformational for the ethanol industry and, by extension, the agriculture industry. Farmers and landowners in Iowa understand that ethanol production consumes more than 50% of our corn crop every year, which is a big reason why we’ve had early success signing hundreds of pipeline easements with farmers who have a vested interest in our success,” said Bruce Rastetter, CEO of Summit Agricultural Group.The ethanol industry plays a critical role across the United States. It supports 360,000 jobs, contributes more than $45 billion to annual U.S. GDP, utilizes approximately 40% of corn produced in the U.S., and provides a $14 billion boost to grain markets.Thirty-two facilities have signed onto the project, which will put the ethanol producers on track to become a net-zero fuel by 2030. In addition to unlocking significant economic opportunities in the years to come, this project will help capture up to 12 million tons of carbon dioxide every year, or the equivalent of removing 2.6 million vehicles from the road on an annual basis.&nbsp;“Siouxland Energy is proud to be part of a project that is transforming the ethanol industry. The Summit Carbon Solutions’ project is critical to strengthen the future of the agriculture industry. Without a reliable, competitive ethanol industry, the marketplace for corn growers will inevitably face significant challenges,” explained Jeff Altena, operations director at Siouxland Energy.“Summit Carbon Solutions’ project will benefit farmers across the state by&nbsp;maintaining a strong corn market while supporting ethanol producers. The project will also provide additional tax revenue for the counties along the route and help the environment,” added Walt Wendland, CEO of Ringneck Energy, one of Summit Carbon Solutions’ ethanol plant partners in South Dakota.Independent studies show that Summit Carbon Solutions proposed carbon capture and storage project will create jobs, generate new property tax revenue for local communities, support local suppliers, and strengthen the regional economy. Through its multi-billion-dollar investment, Summit Carbon Solutions will generate thousands of jobs, produce hundreds of millions of dollars in new property tax revenues for local communities, and more.&nbsp;“Independent analysis shows the overwhelmingly positive impact of this multi-billion-dollar investment, including the creation of thousands of new high-quality jobs, the utilization of local suppliers and main street businesses, and tens of millions of dollars in new tax revenues that will help support investments in our roads, hospitals, first responders, and more,” said Rastetter.In March, Summit announced a $250 million strategic investment from Continental Resources over the next two years. The investment will help fund the development and construction of the project’s associated capture, transportation, and sequestration infrastructure, while also leveraging its operational and geologic expertise to help ensure the safe and secure storage of carbon dioxide.&nbsp;“Our goal since launching Summit Carbon Solutions has been to accelerate ethanol’s path to becoming a net zero fuel, which can be done in the near term and with proven technology,” said Justin Kirchhoff, president of Summit Ag Investors. “To accomplish that, we first partnered with forward-thinking ethanol producers, and we now look forward to working with Continental Resources, which has unmatched experience and knowledge of the Williston Basin in North Dakota, where we will permanently sequester our partner plants’ carbon dioxide.”While the company has already filed permit applications in Iowa and South Dakota, it is focused on securing voluntary easements from landowners along the route. Summit Carbon Solutions has signed easements on more than 100 miles of the proposed route in Iowa. Additionally, the company is currently finalizing agreements that include an additional 70 miles of the proposed route in the state.&nbsp;The company is on schedule to be operational in the first half of 2024. Author: Summit Carbon Solutions

2023-11-14 - Expanding the Economy, Reducing Emissions (Carbon Capture Magazine)

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As Summit Carbon Solutions continues developing the world’s largest carbon capture and sequestration project, their vision remains the same – create jobs, boost markets, and permanently store CO2. 

Summit Carbon Solutions is moving forward with its plan to build the world’s largest carbon capture and sequestration project. This multi-billion dollar investment will connect ethanol biorefineries across five states in the upper Midwest, Iowa, Minnesota, Nebraska, North Dakota, and South Dakota, capture the carbon dioxide emissions from these facilities, compress these gases into a near liquid form, and transport it to North Dakota to be permanently and safely stored more than a mile underground. 

Expanding the Economy, Reducing Emissions

Since the industrial revolution, humankind has been pouring tons of CO2 and GHGs into our atmosphere.It has then been a great challenge to accept that humanity’s activities, which have made life easier in many ways, are by far the largest contributors to global warming. At this point, there is a latent need to not only develop technologies that reduce our emissions to mitigate our carbon footprint, but also to start sequestering it. Biochar appears as the most efficient and cost-effective technology in order to do so. At Advanced Renewable Technology International - ARTi, removing carbon dioxide from the atmosphere has been part of our daily work since 2013, by building cut-edge pyrolysis systems for the production of biochar, activated carbon, and “green” carbon black for almost a decade. Our technology is a tool to not only create valuable products from residues, but also to help farmers,composting facilities, homeowners and landscapes integrate sustainable products in their operations and gardens. In the following article, we will show why “Carbon Sequestration with Biochar is a Business Opportunity for Biomass Producers,” farmers, businesses, and anyone ready to jump in carbon sequestration opportunities with biochar.Biochar is one of the best tools to fight against climate change and can be profitable at the same time. This article explores the capabilities of ARTi´s Biochar Production Units (BPUs). After doing so, we will explore biochar production itself and carbon balance. Finally, we will emphasize on the opportunity presented with the biochar technology and the profitability behind biochar and our systems. Overall, this will be a comprehensive study on how to transform biomass residues into profitable carbon products and help the planet based on our experience in biochar production.What is seen in the figure #2 below is the render of ARTi’s BPU, containerized mobile systems that can be placed anywhere in the world. It is able to pyrolyze a wide range of organic feedstock, with minimum labor requirements, as we are looking at a fully automated operation. Our units are able to sequester from 4 tons to 20 tons of CO2 per day. All of ARTi units are housed in a recycled 40 ft container. ARTi’s BPUs are capable of transforming forestry, agricultural, and industrial residues into biochar with “pyrolysis,” heating biomass residues at high temperatures in the absence of oxygen. Otherwise, these residues would be either burned or decompose in the environment.Important pyrolysis parameters, as well as biomass and biochar properties of the feedstock pyrolyzed, are listed below in Table #1. Biomass moisture content is quite relevant as it would affect the biochar yields and energetic content in order to ensure this thermochemical process is carried out. Parameters of the biochar produced relevant to carbon sequestration are shown: biochar yields, ash content, organic C, and recalcitrance of the carbon are some of the most important factors to consider to determine the capacity of sequestration and biochar quality produced. The purpose of Table #1 above is to show how different feedstocks types and organic material overall behavior based on our experience with specific scenarios. Even within each category, we have some slight differences.Based on the previous information, a cradle-to-grave Life Cycle Assessment (LCA) for soils is performed, a comprehensive assessment of the product’s impact to the environment. The reactor’s manufacturing carbon footprint, the biochar production emissions, and its supply chain are taken into consideration (as shown in Figure #4). Considering the characteristics of the biochar produced, thecarbon credit issuing platforms generate a carbon credit ratio generated per ton of biochar produced as an output.For the purpose of the study, we will focus on one representant of forestry, agricultural, and industrial residues. In the case of bamboo, it presents low ashes (&lt;12%), an Organic C &gt; 50% so we can define it as a good biochar product for high carbon sequestration. The expected carbon ratio result is 2.4; however, it does present the highest biochar yields. Those results are something we could expect, as we would be needing to find an equilibrium between the amount of biochar produced and the amount of carbon content within it. Considering nutshells as the representative of the agricultural residues category, it shows as the ideal feedstock to process. As seen in Table 1, we will be having: low ash content, highest Organic C, and high biochar yields. On the expected carbon credits ratio, we will have the same as in the case of bamboo; although, we will have an increment in the amount of biochar produced. Finally, referring to chicken litter, we have high ash content, low Organic C, and the highest biochar yields in the table. Those variables are reflected in the carbon credit ratio, mostly below 1. Note that this biochar might not be the “best” to sequester carbon, it will have a very interesting nutrient content besides the carbon sequestration value.To show the profitability of the project, where economics are truly influenced by biochar and biochar characteristics, as well as the pyrolysis conditions. At the top of Figure #5 below, you will be able to review three boxes, one for each category previously considered for it. All of them present the Capital and Operational Expenditure (CAPEX and OPEX) per ton of biochar produced.Two revenues are considered for this: Carbon Credits and Total Revenues. At first sight, industrial residues seem to be the best option with the lower expenditures; however, if we consider the economics in terms of NPV, it is the lowest one. As mentioned before, this feedstock category has the highest yields and therefore better OPEX/CAPEX per ton, but it does not have the highest carbon credit ratios and therefore sales. If we focus on the nutshells, it presents the highest NPV. This feedstock achieves a balance between yields and carbon credit ratio, translated into a good economic performance for the project. Finally, we have the forestry residues that fall into the middle of the economic performances with NPVs between $100K and $250K.To emphasize, we will focus only on nutshells. In Figure #6, at the left you will be able to see a picture of the nutshells before and after pyrolysis. Followed on the right side by a summary table with a couple of pyrolysis and biochar parameters:Using a single train reactor, operating 280 days per year, an NPV of $460K is expected to be obtained during the first five years of operation. We forecast to sequester about 1,300 tons of CO2 per year. For this model, we just considered two revenue streams of the many available: Biochar and Carbon Credits sales. Operational costs were included in the calculation.As shown, nutshells is just an example of how green technology is a sustainable and profitable investment. ARTi team’s multiple academic backgrounds has made it possible to develop several biochar production systems and consultancies around the globe. We have offices located in IA, USA and Quito, Ecuador. The blue dots represent the consultancy services we have developed around the world, and the orange dots represent the equipment in place. We definitely look forward to helping more companies accelerate their journey and ours to a greener future.Author: Bernardo del Campo,&nbsp;&nbsp; Matthew Kieffer, Melany Estrella, Lissette Cordova, Diego Guevara&nbsp;

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Carbon Sequestration with Biochar: A Business Opportunity for Biomass Producers

Transforming Residues into  Solutions

The Bipartisan Budget Act of 2018 expanded the 45Q tax credit, the most important federal incentive for encouraging private investment in the development and use of carbon capture technologies and facilities. Tax credits for the capture and long-term, permanent storage of carbon oxides generate a competitive financial return and have a positive environmental impact on the world.&nbsp;In addition, reducing CO2 emissions mitigates climate change and help keep the increase in global average temperature to well below 2°C, above pre-industrial levels. Keeping global average temperature below 2°C, above pre-industrial levels, is a fundamental goal of the Paris Climate Agreement, the highest environmental, social, and governance (ESG) priority issue facing investors.Tax Credit Basics and Tax Equity&nbsp; A tax credit reduces a company’s tax liability dollar-for-dollar. The U.S. government uses tax credits to incentivize certain types of projects that produce economic, environmental, or social benefits. Common tax credit programs include affordable housing, rehabilitation of historic properties, low-income census tract economic development, wind energy, solar energy, and now, carbon sequestration projects. For these projects, the tax credit is an important source of capital, but many project developers do not have enough taxable income to take advantage of the tax credits themselves. In such cases, the developer may monetize the tax credit by attracting a tax equity investor (TEI), usually a corporate tax-paying project partner.&nbsp;Tax equity is a term that is used to describe an equity ownership interest in a qualified project, where an investor receives a return, based not only on project cash flows, but also on tax benefits. In such a transaction, a partnership is typically formed between the project developer and TEI to not only facilitate the investment but allocate and distribute the corresponding tax benefits and project cash flows. The specifics of each partnership vary by project, tax credit type, and transaction structure.Tax equity investors can have demanding requirements in terms of indemnities and guarantees that often surpass the credit quality of sponsors and other transaction parties. Tax credit insurers provide a project and its investment a large, rated balance sheet that can support the indemnities independent of the sponsor’s or counterparty’s financial strength. Tax credit insurance is very flexible and can be customized to each project and transaction. The coverage can extend to three main risk categories: structure, credit qualification, and recapture:1. Transaction structure – Ensuring the investment structure is such that the tax credits will flow through to the tax equity investor as intended. As contracts evolve, this type of coverage assures investors that resulting structures will be respected as passthrough vehicles to realize tax credit benefits under the law.&nbsp;2. Requirements for Qualification for the CCS Credit and Determination of the Credit Amount – IRS guidance outlines many statutory requirements that projects must satisfy to qualify for tax credits. In particular, construction milestones and equipment testing can hamstring project success.3. Forward Looking Requirements and Recapture of Tax Credits – CCS tax credit guidance contains many forward-looking requirements and mechanisms for the recapture of tax credits if those requirements are not met. In particular, the long-term permanent storage or proper utilization of carbon oxides must satisfy stringent guidelines or the generated tax credits may be clawed back.&nbsp;Tax equity investing provides companies two basic benefits: the ability to mitigate tax liabilities, and the opportunity to invest in projects that promote certain social or governmental objectives such as renewable energy production, or carbon mitigation for addressing climate change.The Importance of Carbon Capture and Decarbonization&nbsp; Climate researchers and scientists have long stressed the critical nature of curbing carbon emissions to slow the effects of climate change. Yet even as research confirms the need for aggressive strategies to shift away from emissions-heavy industries, our modern societies are increasingly reliant upon them to function. In the United States, industrial sectors (such as metals and minerals, chemicals, refineries, and others), along with coal-fired and natural gas-fired power plants, account for approximately 50% of the country’s total CO2 emissions. More than 833 million metric tons of CO2 per year are vented directly into our atmosphere by U.S. industry alone.Decarbonizing these high emissions-generating industries in the short term is extremely difficult, which is why long-term strategies and technologies that remove emissions like carbon capture and sequestration (CCS), are critical. Every credible climate model — including those from the Intergovernmental Panel on Climate Change and the International Energy Agency — includes capture and permanent geological storage of carbon as a key requirement to achieve global emissions reduction targets by 2050.Section 45Q is a key part of the U.S. government’s effort. It is a bipartisan acknowledgment of the role CCS plays as a solution to climate change. Democrats and Republicans, fossil fuel companies, unions, and environmentalists have supported 45Q’s expansion as an investable program — one that benefits the environment and creates economic opportunities through the development, construction, and ongoing utilization of these technologies.Section 45Q awards tax credits to owners of capture technology equipment for every metric ton of carbon oxide sequestered. Everything from power plants and refineries to large-scale industrial sites that emit significant amounts of CO2 are viable sources for capture and sequestration projects. These projects may be retrofitted into existing facilities or incorporated into new developments. The carbon capture development may be led by the facility’s operators, or independent development parties.Credits are awarded to capture technology operators over a 12-year period beginning with injection in varying dollar amounts based on one of two methods of sequestration: Carbon Capture and Sequestration (CCS) or Carbon Capture Utilization and Sequestration (CCUS). In comparison with pure CCS technology, CCUS permanently stores carbon and is used for some commercial application, with revenue associated to the activity. Section 45Q allows these CCUS credits to be transferred to other entities able to monetize the credits, allowing for flexibility in business and investment opportunities for organizations bringing these projects to fruition.Who Qualifies?&nbsp; The statute defines a qualified facility as:1. an industrial facility that emits up to 500,000 metric tons of CO2 a year and puts at least 25,000 tons to commercial use2. a power plant that emits 500,000 metric tons or more of CO2 a year; or3. a direct air capture facility, or any other facility not described in (a) or (b), that captures at least 100,000 metric tons of CO2 per year.In other words, an electric generating plant would have to capture at least 500,000 metric tons of carbon oxide per year to qualify. Any other type of facility — a cement plant or a natural gas processing facility, for example — would have to capture at least 100,000 metric tons of carbon oxide per year.It is anticipated that tax equity investors would size their investment by discounting the net benefit streams (tax credits and deductions) expected from the carbon capture project, using their target Internal Rate of Return (IRR) as the discount rate, similar to how wind tax equity investments are sized.CCS: Pure Sequestration Through Dedicated Geological Storage&nbsp; Under a pure carbon capture and sequestration strategy, facilities and operators sequester anthropogenic carbon oxide deep underground where it cannot contribute to climate change. Captured carbon oxide, virtually exclusively CO2, is transported from emissions sources to geologic formations where it can be safely injected into depleted oil or gas reservoirs, saline water-bearing strata thousands of feet deep and below all sources of potable water.&nbsp;At the depths used for sequestration, the injected CO2 is no longer a gas, but a dense fluid that is retained and secured by layers of impermeable rock barriers and natural formations.CCUS: Creating Beneficial Use of Carbon Emissions&nbsp; In CCUS projects, captured carbon emissions are put to work in a variety of applications to benefit other businesses and industries. By far, the most common commercial use of CO2 is through enhanced oil recovery (EOR), where captured CO2 is injected into the earth to improve oil extraction, thereby reducing the carbon intensity of the fossil fuel production. The injected CO2 mixes with the oil, making it less viscous so that it flows more easily. As the oil is produced, the CO2 comes out of solution with the oil and is recaptured and reinjected into the reservoir for another cycle of EOR. EOR projects using an efficient recycle scheme effectively store all injected CO2. EOR projects that use naturally sourced CO2 — that is, CO2 not captured from industrial emissions — do not qualify for 45Q credits.&nbsp;Other potential applications of CO2 for permanent sequestration include production of advanced materials, mineralization in products such as concrete, and usage of CO2 in algae or bacteria growth.For CCUS projects that use and store anthropogenic carbon via EOR or use it in other processes and materials, 45Q will award up to $35 per metric ton of CO2 captured, before growing by an inflation adjustment factor. The CCUS 45Q credit began at $12.83 in tax year 2016 and will grow to $35 per metric ton in tax year 2026 via linear interpolation. Beginning in tax year 2027, the 45Q credit for CCUS projects is the product of $35 and an inflation adjustment factor — the same inflation adjustment factor each year as pure CCS.History and Future of Carbon Capture in the United States&nbsp; The United States has been a leader in the commercial capture, transport, and storage of CO2. The first carbon capture-based projects date back to the 1970s, with the Terrell Natural Gas facility in Texas, which provided the first CO2 feedstocks for enhanced oil recovery in the United States. As of January 2020, the United States is home to 10 of 19 large-scale carbon capture projects currently operating around the globe.EOR, using captured anthropogenic CO2, is seen as a positive step toward a lower carbon future. Capturing the emissions generated during production and using them instead of sourcing alternative CO2 feedstocks, can ultimately result in fossil fuels and other products that are less carbon-intensive than those produced using normal methods.&nbsp;Thoughtful investors understand that hydrocarbon fuels (oil and gas and coal) that are compatible with the existing infrastructure are needed for the next decade, as the world will continue to need oil in the near term. Therefore, reducing the carbon intensity of these fuels and their associated production processes is an effective step toward reducing our carbon footprint. Essentially, CCUS and EOR provide an ‘‘on-ramp’’ for future capture and sequestration projects, accelerating innovation and enabling CCS to scale by driving down technology costs similar to what has been achieved in the solar industry with the solar investment tax credit.A Sustainable Path Forward&nbsp; The 45Q tax incentive for carbon capture projects is just one of many tax equity investments that can be considered socially responsible or sustainable, better known among investors as ESG investments and sometimes referred to as impact investments.ESG investments — and tax equity investments in general — not only provide businesses with opportunities to offset financial liabilities and meet fiscal obligations through relatively low-risk investment programs, but also allow companies to meet growing shareholder demands for corporate sustainability. Tax equity investments, like 45Q and others, represent the elusive win-win: a smart investment strategy that responds to corporate stakeholder demands while contributing to the well-being of our communities at large.Authors: Bryen Alperin, Gary Blitz,&nbsp;&nbsp; Sarah Grey, Steve Whittaker, John Koenig, John Pierce, and Jason Kuzma

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Tax Credit Incentives for Carbon Sequestration: Potentially the Most Impactful U.S. Policy to Battle Climate Change

Breaking It Down

The US Merchant CO2 industry is composed of about 111 plants, sourced largely from ethanol, some 49 plants. Next in line, with respect to by-product plants, would be from the production of anhydrous ammonia, numbering about 23 facilities. Then, would be sources from hydrogen reformers in oil refineries, which total about 20. 19 natural sources from deep within the earth are a source type, not by-product based, which require purification only. Other miscellaneous facilities include by-product from flue gas, ethylene oxide, natural gas processing and syngas. The last group contains approximately eight facilities. Below is picture of a CO2 liquefaction/purification plant, designed to fit a very compact location.&nbsp;The above plant has traditional CO2compression, ammonia refrigeration, and a heat exchanger on top of the facility. Most plants have numerous skid-mounted components such as a refrigeration skid, compression skid, purification skid, and MCC.&nbsp;The CO2 supply illustration is shown in the chart below, indicating the large percentage derived out of CO2 by-product from fermentation. The other major sectors of supply, primarily anhydrous ammonia, reformer operations, and natural sourcing. Beyond this are the miscellaneous sources described above.&nbsp;With respect to future supplies of CO2 feedstocks for CO2 liquefaction/purification, there are a number of new source types under development which include by-product from wood waste /forestry materials in the production of RNG. There are developments to bring to market CO2 from fuel cell projects, which will be niche power projects and supplies to the electric grid. The industry has not given up on sugarcane and various cellulose-based biofuel ventures, where the past projects generally did not find their place in the industry. New sources will be key to supplies of CO2 feedstocks for refinement. Just as new merchant applications for the product continue to emerge, new types of sequestration of carbon will appear.&nbsp;The build-up to achieve this larger percentage of sources from ethanol occurred mostly during the 1990s to 2010s, where the industry built fermentation plants of approximately 50 and 100 million gallons per year to fulfill the demand to blend the fuel into gasoline. In turn, many 300 to 600 TPD (ton per day) CO2 plants emerged. More developments are occurring in the ethanol by-product arena for both supply to the merchant sector, and for EOR/Sequestration in the relative near term ahead. The source will continue to be a major factor in the CO2 supply sector.As to the other source types, the ammonia industry is largely located in agricultural areas, like the ethanol sector. Ammonia by-product is among the relatively ‘cleaner’ supply types which has commonly been a major build for the plant manufacturers over the years, dating back many decades. There were a few additional ammonia plants brought online during the natural gas frac boom in the US, within the last decade or so, which in some cases brought new CO2 to the markets. Other such plants are looking to either sequester into a pipeline or supply a CO2 liquefaction plant.&nbsp;As to the reformer sources found in oil refineries, these were once the only source type in California, until the addition of ethanol sources to the market, where this has supplemented the markets on the west coast to some degree. This is another very familiar source type to the merchant trade, and a relatively clean source.&nbsp;Natural sources are often the most inexpensive source type found in the industry, they are recovered from places like the Jackson Dome in Mississippi; the Bravo Dome in New Mexico; as well as locations in Colorado, Utah, and Arizona. When such sources have a high wellhead pressure, often up to 2,000 PSIG, the compression side of a CO2 plant can be eliminated, thus eliminating the cost of the process equipment, and allied power costs associated with compressing the CO2. The sources can be very pure, up to USP grade, directly from the wellhead. On the other hand, all merchant CO2must pass rigorous quality and testing requirements. The purification side of a CO2 plant is critical to producing a beverage grade commodity. The industry is highly geared toward production of beverage grade product, which in turn is sold to all industries; unless a dedicated plant is for EOR, or industrial use. As to beverage grade, all transportation equipment for CO2 as storage, over the road transports, and railcars are generally assumed and confirmed to haul and contain only such beverage grade in virtually all cases. Due to fear of contamination, various grades of bulk product are not transported.&nbsp;Additional source types such as flue gas, are a wonderful source, however extremely expensive, and with only one such plant found today in western Maryland. The history of CO2 recovery from flue gas has dated back over 50 years, for merchant and EOR usage, and must have the front – end recovery plant, which is generally an amine solvent recovery process. To put this in perspective, in 1990, a 300 ton/day CO2 plant, from a traditional ammonia or ethanol source, could have cost below $2 million. The CO2 plant from flue gas, with full cost consideration, was $25 million or more. Such commercial ventures were developed using the steam host value under energy laws which essentially placed the cost of the CO2 recovery plant into the power plant, thus removing the amortization burden from the cost of producing CO2. In the end, flue gas requires economic subsidies, such as carbon credit values, or more, to be economically competitive with by-product gas from plants including ethanol, ammonia, and reformer operations. &nbsp;The balance of merchant source types including ethylene oxide and natural gas processing are few in number, however, companies such as Poet brought online natural gas processing by-product CO2 plants in Oklahoma and Texas in recent years. Thus, such developments will continue from these feedstocks.&nbsp;The demand of the industry is typically growing at about 3% annually and is highly driven by food processing, dry ice manufacturing, and beverage carbonation. Many industrial uses for CO2 exist from metallurgical to agricultural, to medical uses. The merchant industry is critically important to the economy, and also quite interesting, and resilient.Author: Sam A. Rushing&nbsp; President of Advanced Cryogenics, Ltd.&nbsp; 305 – 852 – 2597&nbsp; rushing@terranova.net

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Examining Merchant CO2 Sources in the United States

Supply Factors

It is with great pride that we present to you the inaugural issue of Carbon Capture Magazine. The Carbon Capture Utilization and Storage industry is emerging, and we see it through the stories reported in the additional publications printed by BBI International, Ethanol Producer Magazine, Biodiesel Magazine, and Biomass Magazine. Because of this excitement, we found it fitting to create a new publication that would deliver information to this rapidly growing industry. Our goal is to provide readers with industry insight, while also showing some remarkable developments made in efforts to reduce carbon emissions and combat climate change.&nbsp;We start by exploring the primary sources of CO2 in the United States. Before any CO2 can be capture, stored, or utilized, we must understand where it comes from. Different sources have varying “cleanliness” and prices, making it an important factor to study before entering the market. To dive deeper into the merchant profile, please see page 6.Sourcing the CO2 for companies and projects is only half the battle. For many organizations interested in pursuing carbon capture and storage, funding is the main issue they face. Our second piece focuses on the tax equity side of carbon capture and explores how tax credits can benefit companies entering the industry. Industrial facilities, power plants, and direct air capture facilities are all eligible for this incentive, which benefit these facilities by expanding capital and assist in meeting sustainability goals. For further information and qualification requirements, see page 10.Next, we examine how the process of pyrolysis is used to produce biochar. This process turns various forms of waste into useful products, while also removing CO2 from the atmosphere. ARTi successfully pyrolyzed over 30 organic materials and has mastered sequestering atmospheric carbon into soil carbon. More details on the effectiveness of this process start at page 14.Finally, we follow Summit Carbon Solution’s story of building the world’s largest carbon capture and sequestration project. The project proposes an extensive pipeline that travels through the Midwest and connects more than 30 ethanol facilities before sequestering the CO2 deep into the ground. Not only is this project reducing emissions by millions of tons of CO2 each year, but it is also creating hundreds of thousands of jobs, boosting our nation’s GDP, and expanding the grain market. &nbsp;Please see page 18 for the full story.On the backside of this issue is the Carbon Capture &amp; Storage Directory. We believe the directory will become a valuable resource to you and facilitates your ability to make new connections that will advance both your organization and the industry. The next issue of Carbon Capture Magazine will be accompanied by a map of facilities and sites where CO2 &nbsp;is being captured, stored, or sequestered. I hope you enjoy our first issue and I look forward to meeting many of you at the Carbon Capture &amp; Storage Summit, held simultaneously with the International Fuel Ethanol Workshop &amp; Expo!&nbsp; Author: Danielle Piekarski&nbsp; Content Manager&nbsp; Carbon Capture Magazine&nbsp; dpiekarski@bbiinternational.com&nbsp;

Navigating a Developing Industry

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Carbon Capture Magazine Issue 1 2022

Carbon Capture Magazine Issue 1 2022

Columns

Navigating a Developing Industry

Featured

Expanding the Economy, Reducing Emissions

Transforming Residues into Solutions

Breaking It Down

Supply Factors

Carbon Capture Magazine Issue 1 2022.css-7jxktu{position:absolute;bottom:0px;left:0px;right:0px;height:3px;border-radius:3px;background-color:var(--chakra-colors-brandBlack);}

Columns

Navigating a Developing Industry

Featured

Expanding the Economy, Reducing Emissions

Transforming Residues into Solutions

Breaking It Down

Supply Factors

Carbon Capture Magazine Issue 1 2022