Iowa RFA says CCUS needed for ethanol industry’s survival

In Iowa, the same week the USDA announced a record corn crop in Iowa, underscoring the need to grow ethanol demand, a bill introduced in the Iowa Legislature could restrict the tools Iowa ethanol producers need to be compete in emerging markets. 

“Iowa farmers cannot afford, literally, to be cut out of the most exciting emerging demand for corn, ultra-low carbon ethanol markets,” said Iowa Renewable Fuels Executive Director Monte Shaw. “With lower corn prices and stagnating demand, developing new markets is critical. This bill would essentially ban CO2 projects in Iowa while our neighboring states are moving forward. Capturing and using or sequestering carbon from Iowa plants would generate $3 billion in federal incentives while helping enhance U.S. oil production, create investment opportunities for new projects in Iowa, and reduce CO2 in the atmosphere. This bill would slam the door on Iowa’s ability to compete, and we urge Iowa House members to oppose it.” 

House Study Bill 507 (HSB 507) would ban the use of eminent domain for CO2 pipeline projects and carbon capture, use and sequestration (CCUS) initiatives. President Trump has called CCUS central to his American Energy Dominance agenda. In Nebraska, a CO2 pipeline has already attracted a nearly $2 billion investment to make green methanol. CO2 sent to places like North Dakota, Wyoming, and Texas can be sequestered, but also allow enhanced oil recovery from America’s fracking fields.