By Leah Douglas
(Reuters) – The Summit Carbon Options’ large carbon dioxide pipeline challenge proposal would must be reassessed if america repeals tax credit for carbon seize and storage, an organization legal professional mentioned on Thursday.
Summit intends to seize carbon dioxide from 57 ethanol vegetation throughout the Midwest and transport it alongside a pipeline greater than 2,000 miles (3,218 km) lengthy to North Dakota to be saved underground, in what could be the world’s largest challenge of its variety.
However the proposal depends on the 45Q tax credit score program, which was expanded by the 2022 Inflation Discount Act, providing $85 per ton of sequestered carbon.
Incoming U.S. President Donald Trump has promised to rescind all unspent funds from the IRA, arguing that President Joe Biden’s landmark local weather change regulation is pricey and pointless. Altering the IRA would require an act of Congress.
Summit legal professional Christina Brusven, at a listening to earlier than the Minnesota Fee on Thursday, was requested whether or not the challenge would nonetheless be financially viable if the tax credit score was repealed.
Brusven mentioned the tax credit score is essential to the corporate’s enterprise mannequin and a repeal “would definitely cause a reassessment.”
Minnesota’s PUC voted on Thursday to allow a 28-mile (45 km) phase of the pipeline within the state. Summit hopes to in the end run 245 miles (394 km) of pipeline in Minnesota and would require extra allowing processes for the remaining miles.
CURE, a Minnesota environmental group that opposes the pipeline, had argued that the fee’s evaluate of the challenge’s environmental affect was insufficient.
