INTERVIEW: Wolf Midstream executive says deal with ADM first step in CCS network

A new carbon capture and storage system, which includes a 350-mile pipeline, the first purpose-built project to tap CO2 from man-made facilities in the US, will likely lead to a network of similar systems countrywide, says an executive with the company building it.

"We see a lot of opportunities to develop similar systems throughout the US in the next 10 to 20 years, as the energy transformation moves on," said Nick Noppinger, head of business development for Wolf Carbon Solutions US.

Wolf has signed a letter of intent to develop the CCS system for Archer-Daniels-Midland, aimed at capturing 12 million mt/year of CO2 from ADM-owned ethanol plants in Clinton and Cedar Rapids, Iowa. The deal was announced Jan. 11.

Wolf is the wholly owned US division of Calgary-based Wolf Midstream, which owns the US $4 billion Alberta Carbon Trunk Line system, the first CCS system in North America built specifically to tap CO2 from industrial facilities. The project includes facilities that capture CO2 from a fertilizer plant and a refinery in the Edmonton area and transports it to central Alberta, where it is used for enhanced oil recovery.

Wolf Midstream is wholly owned by the Canada Pension Plan Investment Board, a pension fund which invests a percentage of Canadians' national pension funds in various sectors.

Illinois sequestration site

The new steel trunk line will be capable of transporting 12 million mt of CO2 annually, from both of the ethanol plants and from cogeneration power plants. The CO2 will be stored in ADM's fully permitted and operating sequestration site near Decatur, Illinois. The pipeline would have significant spare capacity to serve other third party customers in the region.

ADM, which has owned and operated CO2 sequestration facilities for 10 years, has permanently stored more than 3.5 million mt of CO2 into the deep Mount Simon Formation. The company has other plans to reduce its carbon footprint, including the construction of a zero-carbon power plant near Decatur.

Noppinger would not provide a cost estimate for Wolf's CCS project, but he said it involves "complex engineering" and the pipeline itself would be built with very strong steel, which drives up costs. That is necessary for CO2 to be transported at high pressure in a "dense liquid form."

It will take about three to four years to build the facilities, he said.

A veteran of 20 years in the energy industry, Noppinger said the new US division of Wolf is planning significant expansion in the next few years, as it focuses on CO2 capture from industrial facilities throughout the Lower 48 states.

While he said CCS might be more quickly adopted in the US if the country had a carbon tax, like Canada (slated to rise to about $140/mt by 2030), there are still many reasons why companies will want to "decarbonize."

For one, there is a federal tax incentive, called 45Q, which offers tax credits of $50/mt if CO2 is sequestered and $35/mt if it's used for EOR.

In addition, Noppinger said many companies without industrial facilities, such as tech and financial firms, will need to show that they are committed to climate change initiatives, such as reducing CO2.

Pursuing other US projects

Wolf has already held talks with industrial company owners throughout the US Midwest, said Noppinger, adding he believes the potential for the development of similar facilities "is very significant" over the next few years.

"We're actively pursuing other projects across the US," he said.

The 19 existing CCS projects in the US capture naturally occurring CO2, so the potential for capture from industrial facilities is "immense," he said. Worldwide there are 26 existing commercial CCS projects, with another 50 planned.

CCS is seen as one of the most important steps in tackling climate change, while also allowing emission-heavy industries to exist and grow.