By Scout Nelson
David Ripplinger, an associate professor at North Dakota State University specializing in renewable fuels, discusses the complexities of carbon pricing in the agriculture sector. He highlights the lack of a transparent market price for carbon, making direct benefits to farmers uncertain.
Two ethanol facilities in North Dakota have already started capturing carbon emissions, a move facilitated by the region's suitable geology for underground storage. The Summit Carbon Solutions pipeline aims to connect 57 ethanol plants to storage sites, leveraging substantial federal tax credits.
Investors like Continental Resources and agribusiness leader John Deere have backed Summit's ambitious $8 billion carbon capture project. This initiative underscores a growing trend where agricultural and energy sectors collaborate to foster sustainable practices.
The profitability of these investments is still under scrutiny. Summit Carbon Solutions CEO, Lee Blank, notes that while ethanol plants will see some financial gains, the exact benefits for individual plants will vary. He suggests a minimum benefit of 20 cents per gallon of ethanol produced.
Local North Dakota plants like Red Trail and Blue Flint have developed their own carbon capture systems, with investments totaling around $35 million. Although these systems don't directly increase payouts to corn suppliers, they strengthen the ethanol plant as a local buyer, potentially benefiting farmers indirectly over time.
The state's Public Service Commission is revisiting Summit's permit for the pipeline after a previous denial, with upcoming technical and public hearings to reassess the proposal.
While the direct financial benefits to corn farmers remain unclear, the move towards carbon capture in ethanol production is seen as crucial for maintaining market competitiveness in a sector increasingly geared towards low-carbon solutions.
Photo Credit -shutterstock-dickgage
Categories: North Dakota, Business, Crops, Corn