Carbon Capture Pipelines Have Struggled To Advance. A Project In Nebraska Found Success

BISMARCK, N.D. (AP) — A multi-state carbon capture pipeline began operating in September, reducing emissions from Midwest ethanol plants and carrying that carbon dioxide gas to be permanently stored underground in Wyoming — an achievement after years of complaints, lawsuits, and legislation that blocked similar efforts by other companies.

Other projects faced intense opposition, including one that has run up $1 billion in spending with no guarantee of success, but the Tallgrass Energy Trailblazer Pipeline is being praised for its approach: community negotiations and financial support.

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“I wish all energy companies would treat communities with a lot more respect like Tallgrass did,” said Jane Kleeb, whose group Bold Nebraska has fought other carbon capture and oil pipelines.

The Tallgrass pipeline has started moving emissions from 11 ethanol plants in Nebraska and one in Iowa to a site in southeast Wyoming, where the greenhouse gas will be buried 9,000 feet underground.

By capturing carbon released from the fermentation process used to convert corn into fuel, plants can lower their carbon intensity score, making the ethanol more attractive for refinement into sustainable aviation fuel — a market some believe could climb to 50 billion gallons annually. The Midwest-based ethanol industry sees jet fuel as essential to its future, offsetting expected declines in demand for vehicle fuel as drivers switch to electric vehicles.

The federal government supports carbon capture through tax credits for pipeline operators. Both the Biden administration and the Trump administration have continued incentives for this practice, which aims to reduce greenhouse gas emissions.

“If an ethanol plant captures the carbon, it lowers their carbon index and they become a low-carbon fuel, and there’s a premium for that,” said Tom Buis, CEO of the American Carbon Alliance. “And they can also produce sustainable aviation fuel out of it. Sustainable aviation fuel is a huge, gigantic market just waiting for someone to step forward and take it.”

At least three other companies have proposed carbon capture pipelines in the Midwest, but aside from Tallgrass, only Iowa-based Summit Carbon Solutions is still pursuing one — and it hasn’t been easy. Summit has proposed a multibillion-dollar, five-state network encompassing dozens of ethanol plants, thousands of miles of pipeline, and underground storage in North Dakota.

Despite strong support from agricultural groups and the ethanol industry, Summit has faced opposition from landowners and legislators. In South Dakota, lawmakers banned the use of eminent domain for such projects. Summit has since asked Iowa Utilities Board regulators to amend its permit to allow a route that avoids South Dakota.

The U.S. Environmental Protection Agency oversees the permitting process for underground carbon dioxide injection. Carbon Capture Coalition Executive Director Jessie Stolark noted that porous rock formations, similar to a sponge, can securely store carbon dioxide more than a mile underground.

Tallgrass had one big advantage: it converted an existing natural gas pipeline. The natural gas was rerouted to another system as the Trailblazer line was retrofitted, with branches built to connect nearby ethanol plants.

The company also worked closely with local communities along the route, partnering with Bold Nebraska to create a community investment fund managed by the Nebraska Community Foundation. The fund will distribute over $7 million through 2035 to organizations supporting early childhood programs, Medicaid-eligible senior care, and food pantries across 31 counties.

“It’s a unique arrangement and a possible template for future projects,” said Nebraska Community Foundation leader Jeff Yost. “I’m just really impressed that folks who could have approached this purely as opponents came together to find a productive middle ground.”

Tallgrass spokesperson Steven Davidson said the investment fund is just one part of the company’s agreement with Bold Nebraska, emphasizing cooperation and transparency in land surveys and easement valuations.

While Jack Andreasen Cavanaugh of Columbia University noted that Tallgrass’ success may be hard to replicate — few natural gas pipelines are available for retrofitting — he said the model of engagement and community investment could guide future developers.

Tallgrass Vice President Kyle Quackenbush offered simple advice: listen. “I think the biggest advice we would have for people is to take those concerns seriously,” he said, “and figure out what it takes to help people understand that this infrastructure benefits their community and isn’t something to be afraid of.”