The U.S. ethanol industry is exploring carbon capture and sequestration (CCS) pipelines as a means to reduce carbon intensity (CI). This initiative has garnered support from producers but faces opposition from landowners and environmental groups. The Inflation Reduction Act, signed in 2022, introduced tax credits aimed at encouraging cleaner fuel production. To meet stringent CI requirements for sustainable aviation fuel (SAF), ethanol producers are investigating CCS and other alternative methods to lower emissions. While CCS pipelines offer significant benefits, challenges remain, prompting the industry to explore viable alternatives.

Pipeline Projects: Potential and Controversy

The ethanol sector sees CCS pipelines as a promising solution to achieving lower carbon intensity. Capturing CO2 from the fermentation process can significantly reduce CI scores, making ethanol more attractive for SAF production. However, these projects face resistance from various stakeholders, including landowners who are concerned about potential impacts on their properties. Despite these challenges, proponents argue that CCS pipelines represent an affordable and effective way to unlock new markets for ethanol producers.

To better understand the significance of CCS pipelines, it's important to note that reducing CI is crucial for ethanol's future competitiveness. With the rise of electric vehicles and growing societal interest in lowering carbon emissions, the industry must adapt. CCS offers a balanced approach between cost and effectiveness. According to studies, implementing CCS alone can make a standard Midwest plant attractive for SAF production. Monte Shaw, executive director of the Iowa Renewable Fuels Association, emphasizes that without CCS, plants would need to implement numerous costly measures to achieve similar results. Therefore, CCS pipelines are seen as a strategic investment for the long-term sustainability of ethanol production.

Exploring Alternative Solutions

Beyond CCS pipelines, the ethanol industry is investigating alternative methods to reduce carbon intensity. On-site sequestration and innovative uses for captured CO2 are among the options being explored. Some plants, like Red Tail Energy in North Dakota, may have the geological advantage to store CO2 locally. However, many plants do not possess the necessary underground conditions, necessitating pipeline infrastructure to transport CO2 to suitable storage sites.

Another promising avenue is converting captured CO2 into valuable products such as green methanol. Adkins Energy in Illinois is collaborating with Real Carbon Technology to develop a process that transforms CO2 into methanol, potentially reducing CI by 25 points. Methanol has diverse applications, including as a clean fuel and in manufacturing plastics and paints. Additionally, CO2 can be sold for industrial uses like food preservation and water treatment, though this market is already saturated for most ethanol plants. Finally, improving plant energy efficiency and adopting sustainable farming practices, such as cover crops, can also contribute to lowering CI. These strategies highlight the industry's commitment to finding multiple pathways to a greener future.