(P&GJ) — “Owing to the supply of CO2 from industrial sources, combined with the presence of multiple reservoirs and caprocks that meet the geological conditions required for injection and storage, Indiana has high potential as a candidate for CCS [carbon capture and storage] projects.”
This summary was one of the statements included in an overview of Carbon Sequestration in Indiana, in the April edition of the Indiana Journal of Earth Sciences. This overview was written by Valerie Beckman-Feller, Rachel Culver, Ashley Douds and Maria Mastalerz, members of the research staff at the Indiana Geological and Water Survey at Indiana University.
“Indiana has a large number of industrial and power facilities that could be suitable for carbon capture and storage under the right technical and economic conditions,” said Ryan Kammer, carbon management research manager at the Great Plains Institute. “Over 99% of CO2 emissions in the state are emitted by the 146 facilities that are eligible for the 45Q tax credit and span a number of industrial and power sectors, including cement, ethanol, and steel facilities, which have CO2 emissions intrinsic to their processes and will likely need carbon capture to fully decarbonize.”
According to a report from the Carbon Capture Coalition, the 45Q tax credit can be claimed when an eligible project has securely stored CO2 in appropriate geologic formations, including saline or other geologic formations or oil and gas fields. The credit can also be claimed when an eligible project has reused the captured CO2 or its precursor carbon monoxide (CO) as a feedstock, to produce low embodied carbon products such as fuels, chemicals and building materials.
These tax credits are an important aspect of CCS activities.
Much of Indiana also has potential for permanent storage in saline geologic formations, as evidenced by a number of Class VI well permits that are under review or already approved by the United States Environmental Protection Agency (EPA)—the sixth highest number of any state.
Indiana state agencies and universities have also been a part of several Department of Energy-funded projects, one of which ultimately led to an approved Class VI permit, the third Class VI well to be approved by the EPA.
While technical and economic considerations will be required at the site level, the potential geologic storage available in Indiana could position Indiana as a leader in the Midwest for both carbon capture and carbon storage, Kammer added.
The Class VI permit referenced is a Final Permit issued to Wabash Carbon Services by the EPA, according to the Underground Injection Control (UIC) Class VI Permit Tracker; this database was last updated on May 24.
Rulemaking Process
The rulemaking process is underway in Indiana for carbon sequestration projects. Comments are being considered for proposed rules by the Indiana Natural Resources Commission (NRC). The commission describes itself as “… an autonomous board that addresses issues pertaining to the [Indiana] Department of Natural Resources (DNR).”
Among the regulations being considered are ones for entities seeking to obtain a CO2 transmission pipeline certificate of authority, obtain a carbon sequestration project permit, administrative and procedural items regarding carbon sequestration projects and CO2 transmission pipelines, ongoing responsibilities of a storage operator, and records of a storage operator.
Rule 5, which is being considered by the commission, focuses on CO2 transmission pipelines.
A variety of requirements are included in this specific rule. For example, different levels of liability insurance would be required during the construction as well as during the operation of pipelines depending on the length of the pipelines.
“An applicant for a carbon dioxide transmission pipeline certificate of authority shall illustrate a financial ability to construct, operate and maintain a carbon dioxide transmission pipeline by giving the department documentation proving the applicant obtained the insurance required…” according to the proposed regulations.
For a pipeline not more than 20 mi in length, liability insurance would be required in the amounts of $700,000 for each person and $5 million for each occurrence.
For a pipeline longer than 20 mi in length, liability insurance would be required in the amounts of $700,000 for each person for the first 20 mi plus $12,500 for each additional mile or part of an additional mile for each person and $5 million for each occurrence for the first 20 miles plus $12,500 for each additional mile or part of an additional mile for each occurrence.
In addition to these amounts required, the proposed regulations would require an applicant for a CO2 transmission pipeline certificate of authority to maintain liability insurance while constructing, operating and maintaining a pipeline, including at least $1 million for each person and $5 million in the aggregate, as well as at least $1 million for each occurrence and $5 million in the aggregate.
The proposed regulations would require that the individual designated to manage the construction of a pipeline have minimum levels of education, experience and specific skills in pipeline design or construction, chemicals or refining.
According to the DNR, “No permits or certificates have been issued at this time by the DNR for either carbon sequestration or pipelines. After the first comment period concludes, DNR will publish a summary of the comments and responses to the summarized comments.”
The NRC indicated in a statement that it anticipates final rules will likely become effective in October of this year.
Hickory CCS Hub
Tenaska is involved in developing a CCS hub in Warren County, Indiana, which is located along the state’s border with Illinois and is west of Lafayette, Indiana. Tenaska, headquartered in Omaha, Nebraska.
Currently, the Hickory CCS Hub is in early development in western Indiana and has had several discussions with Warren County leaders, as well as with neighbors of the proposed site, according to the company.
“We believe the proposed location has the appropriate geology to support the safe, long-term storage of CO2 — and we intend to prove this out with seismic surveys and related work in support of a Class VI application,” said Bryan Crabb, the Tenaska developer on the project. Right now, our team is focused on aligning the development schedule with customer needs and timelines.”
Permanent Storage
One of the firms most active in the CCS industry in Indiana is Vault 44.01.
The firm, headquartered in Denver, Colorado, is focused on permanent geological storage of CO2 deep underground. Key members of Vault’s team have been involved in the design and implementation of CCS projects for more than 20 years, according to a statement from Vault, including projects currently operating in Illinois, Saskatchewan and Alberta.
“Our company works in partnership with industrial emitters across North America to develop CCS projects,” said Hugh Caperton, senior vice president Development of Vault. He added:
Vault is currently working with seven ethanol facilities across Indiana, Ohio and Illinois and expects to begin construction on our first project in early 2026, upon receiving approval from the EPA. We are also working with industrial partners in the power, hydrogen, forest products and cement sectors on earlier-stage CCS projects in the U.S. Midwest, U.S. Southeast and Canada.
He continued: “Vault is backed by a $300 million equity commitment from Grey Rock Investment Partners and invests alongside our industrial partners to bring CCS projects to fruition.” Grey Rock is headquartered in Dallas, Texas. Currently, four CCS projects are in process by Vault in Indiana.
Though the firm declined to identify the specific locations in Indiana, publicly available documents indicate the locations as being in Madison County, Montgomery County, Randolph County and Wabash County.
“Since inception, Vault has focused on industrial facilities with high-purity CO2 emission streams that are proximal to viable geology for permanent sequestration,” said Caperton. “This focus on near-site sequestration opportunities, in-house technical expertise, commercial flexibility and a core initiative to educate and inform stakeholders has enabled Vault to secure seven contracted projects with ethanol producers, four of which are in Indiana.”
Vault expects to place the injection wells on the ethanol plant’s property, meaning there will be no pipeline. For the fourth project, Vault plans to construct a pipeline of 3.5 mi (5.6 km) to move the CO2 away from the town.
“Vault’s four initial projects represent about 1.2 mtpa of CO2 sequestration and we anticipate our first project will reach commercial operations in 2026 with the additional facilities following in 2027 and 2028, Caperton said. “Once completed, the projects will improve the competitiveness of our partners’ ethanol plants and enable them to access new markets, benefiting the biofuels and agricultural sectors in Indiana.”
The geology of Indiana is one of the key aspects that beckons the CCS industry to the Hoosier State.
“Indiana’s geologic environment is broadly sound for CO2 sequestration and its supportive regulatory environment creates substantial opportunity for in-state development of CCS projects for Indiana’s industrial base,” Caperton said. “Conversely, despite an excellent geologic resource in Illinois, recently passed state legislation is likely to hamper development of CCS projects in the near term.”
Governmental regulatory activities affect the development of CCS projects throughout North America. Caperton indicated that the regulatory environment is welcoming in Indiana.
Future growth is likely for the CCS industry in Indiana, according to Caperton.
“As ethanol producers and other industries look to increase competitive advantages, Indiana’s early leadership position via business-friendly legislation and opportunities for rural Americans creates a desirable roadmap for many industries, states, and local communities,” he said.
Indiana’s current legislation and rulemaking for CCS provides tools for industry and project developers to develop CCS projects, placing Indiana as a leader in the Midwest for CCS development, and according to Caperton, coupled with sound geology for sequestration, stands at the forefront for both near-site sequestration development and broader scale projects with associated pipelines.