This story is a part of a Harvest Public Media series on carbon capture projects. Read about CO2 pipeline projects being proposed throughout the Midwest and plans to sink the carbon underground.
Chandler Johnson
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Harvest Public Media
On any given day about 175,000 metric tons of carbon dioxide — equivalent to the emissions from 38,000 vehicles — stream out from Adkins Energy facility.
This northwest Illinois plant turns corn into ethanol, long touted as a renewable energy source.
Now the plant is thinking of ways to go greener. If a pilot project is successful, the Adkins Energy plant will capture all that CO2 and turn it into green methanol — an in-demand renewable fuel.
“If it works, it has all kinds of potential going forward,” said Adkins General Manager Bill Howell.
What makes this pilot and other carbon capture projects — including controversial CO2 pipelines — possible are federal tax credits worth up to $100 billion over 10 years.
The Inflation Reduction Act, signed by President Joe Biden in August 2022, offers new and expanded tax credits to encourage Americans to buy electric vehicles and install solar panels, among other provisions. It also offers uncapped tax credits for capturing emissions, including CO2, to reduce the worst impacts of climate change.
“The administration has committed to getting to net zero emissions by 2050, which means that we’re going to be taking out as least as much carbon as we emit into the atmosphere every year,” said Noah Deich, deputy assistant secretary for carbon management at the U.S. Department of Energy.
Tax credits available for carbon capture or related projects
45Q: Under the Inflation Reduction Act, the government will pay qualified facilities $85 per metric ton of CO2 stored or $60 per ton of CO2 used for enhanced oil recovery or other use. Plants built to capture CO2 from the air can get $180 per metric ton. Projects have until January 2033 to begin construction.
45Z: Provides a tax