By Leah Douglas
(Reuters) – The Summit Carbon Options’ huge carbon dioxide pipeline undertaking proposal would have to be reassessed if the USA repeals tax credit for carbon seize and storage, an organization lawyer 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 can be the world’s largest undertaking of its form.
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 legislation is dear and pointless. Altering the IRA would require an act of Congress.
Summit lawyer Christina Brusven, at a listening to earlier than the Minnesota Fee on Thursday, was requested whether or not the undertaking would nonetheless be financially viable if the tax credit score was repealed.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 finally 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 overview of the undertaking’s environmental influence was insufficient.
