Conestoga Energy Ramps Up U.S. Carbon Storage Ambitions with Class VI Milestone

A quiet Kansas town just got a front-row seat to the future of carbon management

In Garden City, Kansas, something big is happening underground. Conestoga Energy, a key player in the low carbon biofuel space, just completed drilling its first Class VI carbon sequestration well, a major step toward capturing and permanently storing carbon dioxide emissions from ethanol production.

For years, Conestoga has been leading the way in reducing the carbon intensity (CI) of biofuels. But this well is different. It’s not just about improving their own production; it’s a sign that carbon capture and storage (CCS) is maturing as a serious business strategy in the U.S. Midwest.

>> RELATED: Conestoga Energy Completes Drilling of Class VI Carbon Capture & Sequestration Well, Advances Toward EPA Application

Inside the well: What makes this project different

The new Class VI well, located near Conestoga’s Bonanza BioEnergy plant, was designed to inject CO₂ more than a mile below the surface. The goal is permanent sequestration - no leaks, no rebounds, just carbon locked away for good. The company plans to submit its Class VI permit to the U.S. Environmental Protection Agency this summer.

Once operational, this site will be capable of storing over 150,000 metric tons of CO₂ annually. That’s roughly the emissions of 32,000 gasoline-powered cars each year.

More importantly, this well supports the full integration of Conestoga’s CCUS (carbon capture, utilization, and sequestration) strategy—not just cutting emissions but earning carbon credits and potentially accepting third-party carbon to expand the project’s reach.

Why Class VI matters for the carbon economy

Under EPA guidelines, Class VI wells are the gold standard for carbon sequestration. These wells undergo rigorous evaluation to ensure long-term safety and containment, making them essential to any credible net-zero roadmap.

This isn’t Conestoga’s first carbon rodeo either. The company already uses Class II wells at its nearby Enhanced Oil Recovery (EOR) site. That means they’re not only storing carbon but also using it to recover more oil, a double play of environmental and financial value.

The proximity between the two wells, just 14 miles apart, gives Conestoga a unique advantage in managing both sequestration and utilization. That’s rare in the CCUS world, where most companies focus on one or the other.

A deeper dive into the assets and ownership

In 2024, Conestoga purchased the well site, flood field, leases, and CCS equipment outright. This full ownership structure puts them in a strong position to control costs, timelines, and data - a critical edge when navigating federal permitting.

Tom Willis, CEO of Conestoga Energy, underscored the strategic importance of this milestone: “This milestone further advances our mission of being the leading provider of low carbon intensity biofuel and reflects our deep commitment to innovation and sustainability in bioethanol production. Carbon capture and sequestration is a proven solution that allows us to dramatically cut emissions while also expanding our presence in the growing, low carbon fuel markets, both domestically and internationally, unlocking additional financial value.”

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Conestoga’s bigger vision: Low-carbon fuels with staying power

While the Class VI well is headline-worthy, it’s just one piece of a much larger strategy. Conestoga’s ethanol operations, spanning Kansas and Texas, already manage over 200 million gallons annually. And they’ve been capturing CO₂ for more than 15 years.

Their biofuels portfolio includes both Corn-Based Ethanol (D6) and Cellulosic Biofuel (D3), qualifying them to generate renewable fuel credits under the Renewable Fuel Standard. Add to that their involvement in carbon trading markets like LCFS, RINs, RGGI, and CCA, and it’s clear: this isn’t a company dabbling in sustainability; they’re all in.

Industry-wide momentum behind CCUS

Conestoga’s drilling success reflects a broader shift. Across North America, CCUS projects are picking up pace, from Alberta’s CO₂ trunklines to Louisiana’s blue ammonia plants. According to the Global CCS Institute, over 260 commercial carbon capture facilities are in development globally, with the U.S. leading in both projects and carbon storage capacity.

“This is the moment carbon capture moves from pilot to platform,” said Brad Crabtree, Assistant Secretary for the U.S. Department of Energy’s Office of Fossil Energy and Carbon Management, during a recent CCUS summit. “We need companies like Conestoga to scale these solutions regionally and embed them in real industries.”

What's next for the well - and for Kansas

With drilling complete, Conestoga now shifts to the data phase. Their permit application will include seismic readings, environmental models, and detailed geological surveys. If approved, the well will not only sequester carbon from ethanol; it could anchor a carbon hub for the entire region.

Kansas might not be the first place people think of when they hear climate tech, but this project flips that script. It shows that innovation can come from the heartland, and that biofuel producers are stepping up with scalable, smart climate solutions.

A future worth storing

Carbon capture isn’t a futuristic fantasy anymore. It’s happening - quietly, effectively, and in places like Garden City. Companies like Conestoga are proving that it’s possible to merge energy production, emissions reduction, and economic returns into a single, coherent strategy.

And as more industries look for real ways to meet net-zero targets, this kind of integrated model, where carbon is captured, used, and stored, isn’t just smart. It’s essential.