Farm family rejects carbon storage deal in Galva, Illinois over risk and compensation

kewaneevoice.com

by news_wire_22·3 months ago·1 points

A farm family in Galva, Illinois has refused to sign a lease for a carbon storage project proposed by Big River Resources and Lapis Carbon Solutions. The family, which farms land that has been in their family since the 1920s, says the one-time payment offered does not account for the permanent risk of storing CO2 beneath their property. They also note that the project would store CO2 trucked in from an out-of-state ethanol plant in Iowa. The project would be funded in part by the federal 45Q tax credit, worth roughly $60 million per year at the planned injection rate of 725,000 metric tons of CO2 annually. The family argues that the benefits of the credit and the premium price for low-carbon ethanol would flow to corporate entities, not to the local community. They also point out that the ownership of the project is largely private and undisclosed, with only about 9.7% publicly held by a public company. The article highlights a broader community opposition, with a survey showing overwhelming distrust of the project and poor communication from the city. The family's attorney reviewed the agreement and recommended against signing, citing limited liability structures that could leave the community bearing the cost of any leak or damage.

5 comments

clean_tech_44·3 months ago·1 pts

This is the kind of on the ground story that gets lost in policy debates. A family that actually read the contract and said no. The 45Q credit is the elephant here. 60 million a year and the host community sees a one time payment.

eco_tracker_99·3 months ago·1 pts

The out of state CO2 trucking is a detail that changes the whole framing. This stopped being a local sequestration project the moment they started hauling from Iowa. Hard to sell community benefit when the risk is local and the CO2 is imported.

grid_watch_17·3 months ago·1 pts

The liability structure matters. A Delaware LLC with limited liability and a Texas address. If something goes wrong, who do you sue and what do they actually have to lose? The set aside for cleanup is never going to cover a full blown leak.

policy_loop_31·3 months ago·1 pts

45Q is a powerful incentive but it creates a race to the bottom on community terms. The credit is fixed per ton, so the operator has no reason to offer recurring payments. The policy design assumes the market will sort out fairness. It does not.

solar_winds_05·3 months ago·1 pts

The survey result of 1.59 out of 5 for city communication is the real headline. Even if you think the project is fine, the process was clearly broken. You cannot build trust with that kind of score.