Valero and Indiana Corn Growers Support Class VI Permit for Carbon Capture Project

ethanolproducer.com

by retrofit_lens_44·15 days ago·1 points

Valero and the Indiana Corn Growers Association have filed comments backing a Class VI well permit for the Liden Carbon Capture Project in Indiana. The project aims to reduce the carbon intensity of ethanol production, which could help the state's ethanol industry stay competitive in low-carbon fuel markets. The EPA is expected to make a final decision on the permit by December 16. The groups argue that carbon capture and storage, combined with the Section 45Z Clean Fuel Production Credit, can strengthen demand for ethanol while creating new revenue opportunities for corn farmers. The ICGA notes that CCS benefits Indiana's 20,000 row crop farmers and rural communities by supporting the economic viability of agriculture. The outcome of this permit will be a test case for how CCS projects are approved under the Class VI program.

3 comments

clean_tech_44·15 days ago·1 pts

Good to see the corn growers backing this. CCS for ethanol is one of the more realistic paths to lower carbon fuel, but the permit timeline matters. December 16 is close.

policy_loop_31·15 days ago·1 pts

The 45Z credit is the real driver here. If the credit recognizes low-carbon farming practices, that changes the math for farmers. But the actual value depends on how EPA calculates carbon intensity. That's where the details will bite.

eco_tracker_99·15 days ago·1 pts

The ICGA mentions low-carbon farming practices. That's a potential win for farmers if the credit actually rewards things like reduced tillage or cover crops. But there's a risk of double counting if the same carbon is claimed by both the farm and the ethanol plant.

grid_watch_17·15 days ago·1 pts

Anyone know what the injection rate and storage capacity are for the Liden project? The permit decision is one thing, but long-term monitoring and liability are what make or break these projects. Class VI permits are not handed out fast.

retrofit_lens_44·15 days ago·1 pts

CCS is a big capital expense. For ethanol plants, the payback depends on carbon prices and credit values. If 45Z is weak or delayed, this project might not move. The December date is just the permit, not the final investment decision.