CO2 Pipelines Face Opposition, While CO2 Utilization Gains Support

• Iowa's House lawmakers introduced a package of six bills aimed creating restrictions on the construction of CO2 pipelines in the state. In August 2024, the Iowa Utilities Commission (IUC) approved Summit's permit, granting the company the use of eminent domain. However, Summit cannot begin construction until the project receives approval in other states, including South Dakota, where the pipeline faces significant opposition from lawmakers and property owners. This is significant as 28 ethanol plants in Iowa are already subscribed for CO2 transportation and storage from Summit including Valero and Poet.

  • House File 238: Prevents the IUC from renewing permits for pipelines transporting liquid carbon dioxide.

  • House File 242: Allows landowners affected by eminent domain to seek a court review.

  • House File 240: Requires companies to provide proof of insurance or surety for potential damages. Also, Mandates reimbursement for individuals with increased insurance premiums or difficulty obtaining insurance due to the pipeline project.

• The Northern Pioneer, the world’s first commercial liquefied CO2 transport ship, has arrived in Norway to support the Northern Lights project. This 130-meter-long ship can carry 8,000 tonnes of liquefied CO2 and will begin operations this year, marking a key milestone in the development of the world’s largest dedicated CO2 shipping fleet. It will transport CO2 from European industrial capture sites to a receiving terminal in Øygarden, Norway, where it will then be stored underground. The importance of CO2 shipping will open new markets not suitable for carbon sequestration or local pressure to not build CO2 pipelines.

• President Trump has signed executive orders to support U.S. fossil fuels, but the energy industry is waiting to see his policy for carbon capture and storage. One area in particular is granting states Class VI primacy to expedite CCS projects. Currently, over 160 permit applications are pending, with West Virginia soon to gain authority. Former President Joe Biden’s EPA ended up approving West Virginia’s request for top enforcement authority in January before Trump took office. A pre-publication version of the rule was signed Jan. 17, but it doesn’t become effective until 30 days after it is published in the Federal Register. It’s unclear when that may happen.

• Australia’s federal government announced that its Future Made in Australia (Production Tax Credit and Other Measures) Bill 2024 has cleared the upper house, paving the way for $8.6 billion USD worth of tax breaks to flow for green hydrogen production and critical minerals processing. The legislation establishes a hydrogen production tax incentive worth $2 per kilogram of renewable hydrogen produced between 2027-2028 and 2039-2040 for up to 10 years per project. Countries around the world are taking proactive measures to promote clean energy projects similar to US’ 45Q and 45V.

• U.S. e-Fuel procure StormFisher Hydrogen has secured a $50 million commitment from Hy24’s Clean Hydrogen Infrastructure Fund, a leading low-carbon hydrogen asset manager. StormFisher Hydrogen’s current project pipeline includes several facilities located across the United States (Texas, Kansas, Minnesota) and Canada (Ontario region). Together, they will have the capacity to convert up to 1.8 gigawatts (GW) of renewable energy from solar and wind into European compliance RFNBO e-Fuels (e-Methanol, green ammonia, and e-Methane). The company’s most advanced project located in North Texas, U.S. is expected to reach FID in early 2026 and will have an e-Methanol production capacity of more than 120,000 tonnes per year.

• Global e-Fuel developer HIF Global has shown interest in investing $1 billion in India's Odisha renewable energy sector. The company presented its plans for e-fuel production to Odisha's Deputy Chief Minister Kanak Vardhan Singh Deo. The company seeks 50 acres of land, along with water and electricity supply, to establish the project. Odisha promises full investment support, including a single window clearance system. The project plans to produce 350,000 tons of e-methanol annually. HIF Global is currently active in the U.S., Chile, and Australia.

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