Wolf Carbon Solutions halts Iowa CO2 pipeline plans

Wolf Carbon Solutions has withdrawn plans to develop its 95-mile carbon dioxide (CO2) pipeline in eastern Iowa.

The news comes as the US company filed a withdrawal of a petition for the liquid pipeline permit, which it filed in February 2023.

Called the Mt. Simon Hub, Wolf’s pipeline hopes to capture, compress, and transport up to 12 million tonnes per annum of CO2 via a 280-mile steel pipeline.

The planned pipeline hopes to transport the CO2 to downstream sites in Illinois.

In order for the project to be completed, regulatory approval is required from both the Iowa Utilities Commission and the Illinois Commerce Commission.

A filed document said, “While Wolf has continued to build relationships with landowners and stakeholders interested in the project, a number of factors have continued to delay Wolf’s ability to proceed with the project.”

It also said that Wolf will decide on any necessary new filings with the Commission once its plans for the project are clearer.

Earlier this year, Summit Carbon Solutions, which is also developing a CO2 pipeline project in the US, received approval from the Iowa Utilities Board (IUB) after several setbacks.

Read more: Summit Carbon Solutions’ CO2 pipeline approved in Iowa

The Summit project had received scrutiny in the US state prior to the approval. The IUB carried out an extensive review process, which was made up of 33 public informational meetings, a public hearing, and a review of around 50,000 pages, among other processes.

Post-review, the IUB unanimously found that Summit Carbon Solutions met the requirements of Iowa Code Chapter 479B and that the pipeline will provide a service that is in the public convenience and necessity.

45Q: sequestration vs utilisation 

While CO2 pipelines have been described as essential in removing emissions by some, others are more apprehensive and fear that they could hinder the traditional CO2 market.

Read more: CO2 pipelines ‘essential’ in removing emissions

Section 45Q of the US tax code offers tax credits for carbon capture and utilisation, providing up to $85 per tonne for sequestration and $60 per tonne for utilisation, with higher rates for direct air capture (DAC) projects – $180 for sequestration and $130 for utilisation.

The CO2 Solutions Coalition (CSC) is a CO2-dedicated lobbying arm of the US Compressed Gas Association (CGA) that advocates for the continued supply of critical carbon dioxide in the US and  is making some headway.

Read more: CGA’s carbon dioxide lobby “still educating” policymakers, says Gottwald

https://www.gasworld.com/story/co2-summit-cgas-carbon-dioxide-lobby-still-educating-policymakers-says-gottwald/2144524.article/

Speaking at gasworld’s North America CO2 Summit earlier this year, Rich Gottwald, President and CEO of the CGA, said the key messages that the coalition was looking to put across included the point that CO2 is essential for many applications – and the supply chain for these essential applications should not be hurt by environmental efforts, which the coalition otherwise supported.

Gottwald described the lobby group as “a collaborative effort to safeguard America’s supply chain by providing facts, resources, and information about the vital role CO2 plays in our economy.”