Minnesota Carbon Capture Opportunities
Minnesota holds immense potential for the implementation of carbon capture technology in the ethanol industry. Nineteen of the state’s ethanol facilities qualify for the extended and revised 45Q federal tax credit, 16 of which stand as economically feasible candidates for retrofit with carbon capture technology. Clean energy legislation is taking shape and includes carbon capture as a pathway for Minnesota to meet its proposed goal of 100 percent carbon-free energy by 2050. With over 750 miles of potential CO2 transport infrastructure, Minnesota has the opportunity to transport up to 4.4 million metric tons (MT) of CO2 annually to out-of-state storage and utilization sites and is positioned to become a significant CO2 transport and storage hub in the Midwest region.
Industrial Facilities that Qualify for the Tax Credit in Minnesota
The Regional Carbon Capture Deployment Initiative has identified industrial facilities in numerous states as early candidates for carbon capture retrofits. These facilities could qualify for the revamped federal 45Q tax credit for projects that capture carbon from industrial facilities and power plants for geologic storage and beneficial use. Facilities were selected based on emissions, equipment, and estimated capture cost.
Economically Feasible Industries in Minnesota
The Regional Carbon Capture Deployment Initiative estimated theoretical capture costs based on published capture equipment costs, facility-specific operational patterns, existing equipment, and level of emissions. Based on that data, the graphic below displays several of Minnesota’s most likely economically feasible candidates for capture, along with estimated capturable emissions in million metric tons and estimated range of capture costs for facilities in each industry. This list is not meant to be definitive. Commercial decisions by participating companies and policy and regulatory decisions by state governments will ultimately determine if a project is feasible for carbon capture. “Captured Emissions” refers to the amount of carbon dioxide that can be expected to be captured at a facility considering relevant technological and economic constraints.
