Heartland Greenway Project Update: Carbon Pipeline Project Canceled

October 20, 2023

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(Navigator CO2) The development of Navigator CO2’s pipeline project has been challenging. Given the unpredictable nature of the regulatory and government processes involved, particularly in South Dakota and Iowa, the Company has decided to cancel its pipeline project.

Matt Vining, CEO of Navigator CO2 remarked, “As good stewards of capital and responsible managers of people, we have made the difficult decision to cancel the Heartland Greenway project. We are disappointed that we will not be able to provide services to our customers and thank them for their continued support.”

Vining continued, “I am proud that throughout this endeavor, our team maintained a collaborative, high integrity, and safety-first approach and we thank them for their tireless efforts. We also thank all the individuals, trade associations, labor organizations, landowners, and elected officials who supported us and carbon capture in the Midwest.” READ MORE

Navigator scraps plans for carbon capture pipeline that would've crossed Iowa (KCCI)

Navigator Cancels Heartland Greenway CO2 Pipeline Project (Ethanol Producer Magazine)

Navigator CO2 cancels its multistate pipeline project (Iowa Capital Dispatch)

IRFA STATEMENT REGARDING NAVIGATOR CO2 CARBON CAPTURE PIPELINE PROJECT CANCELLATION (Iowa Renewable Fuels Association)

Navigator C02 ends pipeline project -- The Omaha-based carbon company had run into multiple roadblocks during its attempt to get approval for a proposed 1,352-mile pipeline running through parts of five Midwest states. (Successful Farming)

Navigator cancels plans for major Midwest carbon dioxide pipeline -- The company attributed the move to “the unpredictable nature of the regulatory and government processes involved, particularly in South Dakota and Iowa.” (Politico Pro)

Carbon capture pipeline nixed after widespread opposition: Navigator CO2 says regulatory hurdles are too much to overcome. (Ars Technica/Financial Times)

Navigator cancels proposed Midwestern CO2 pipeline, citing ‘unpredictable’ regulatory processes (Associated Press)

BlackRock-Backed Navigator Scraps US Corn Belt CO2 Pipe Plan: Ethanol-emissions project canceled after US farm states balked; Rival Summit Agriculture seeks to gain Navigator’s partners (Bloomberg)

Navigator CO2 Ventures cancels carbon-capture pipeline project in US Midwest (Reuters)

Scuttled CO2 pipeline renews debate about state hurdles: The Biden administration wants to boost carbon capture and storage. Getting new carbon dioxide pipelines approved remains a big challenge. (E&E News Energywire)

Navigator Cancels Carbon Pipeline Plans: In Blow to Ethanol Plants, Navigator Ends Attempt to Build a Five-State Carbon Pipeline (DTN Progressive Farmer)

One of two carbon dioxide pipelines that would cross into Minnesota has folded -- The Nebraska-based company cited regulatory uncertainty in South Dakota and Iowa for canceling the Midwest-wide project (Minneapolis Star Tribune)

Navigator CO2 scraps Midwest pipeline plans (Agri-Pulse)

Navigator kills its $3.5B carbon capture pipeline across Iowa, South Dakota, other states (Des Moines Register)

Ethanol industry dealt blow as major carbon pipeline canceled (Washington Examiner)

Carbon Pipeline Project Cancelled (Energy.AgWired.com)

DISAPPOINTMENT FROM ETHANOL GROUPS AS NAVIGATOR CO2 CANCELS PIPELINE PROJECT (Brownfield Ag News)

Scuttled CO2 pipeline renews debate about state hurdles (E&E News Energywire)

Valero evaluating carbon emissions sequestration options after pipeline partner scraps project (San Antonio Express News)

US drive to make green jet fuel with ethanol stalled by CO2 pipeline foes (Reuters)

Excerpt from Iowa Renewable Fuels Association: Today Navigator CO2 Ventures announced the cancellation of their proposed Heartland Greenway Project that was set to span across the Midwest. The project would have connected ethanol plants across several states and transported CO2 to underground sequestration sites, meeting goals for a low carbon future and boosting agriculture markets. In response to this announcement, Iowa Renewable Fuels Association Executive Director Monte Shaw made the following statement:

“IRFA support CCS projects as the best way to align ethanol production with the increasing demand for low carbon fuels both at home and abroad. CCS is the essential key to unlocking the 100-billion-gallon sustainable aviation fuel (SAF) market for agriculture, in the long term. If realized, the SAF market would trigger the largest rural economic boom since the introduction of corn hybrids. It is not an overstatement to say that decisions made over the next few months will likely place agriculture on one of two paths. One would lead to 1990s stagnation as corn production exceeds demand, and the other opens new market opportunities larger than anything we’ve ever seen before. IRFA will fight for a prosperous farming future.

“Over the last year, we have been disappointed with the amount of disinformation that has been spread among the public and the regulators across multiple states. That does not happen by accident. Rather, it is being pushed by groups who oppose modern agriculture and whose stated mission is to destroy farming as we know it. While we respect Navigator’s decision, IRFA will continue to support multiple other CCS projects and we expect ultimate success.” READ MORE

Excerpt from Ethanol Producer Magazine: The South Dakota Public Utilities Commission on Sept. 26 denied Navigator’s permit to build and operate the 111.9 miles of Heartland Greenland pipeline that was planned for development in the southeast region of the state where it would have connected to three of the state’s ethanol plants. In its order, the South Dakota PUC said Navigator failed to prove the project would not substantially impair the welfare of those located within the siting area. The agency also said Navigator failed to prove the project would not pose a serious threat to the environment or economic condition of citizens located within the siting area. Navigator had 30 days to appeal the denial.

The South Dakota PUC’s denial of the permit followed a separate order issued by the agency earlier in September denying a motion filed by Navigator to preempt county ordinances under a portion of South Dakota state law that allows the PUC to supersede or preempt county or municipal land use, zoning, or building rules, regulations or ordinances to ensure that energy requirements of the people within the state are filled.

On September 29, Navigator filed a request with the Iowa Utilities Board to pause work on its permit as the company reviewed the proposed pipeline route and technical specifications in light of decisions from regulatory authorities in neighboring states and individual landowner requests.

Less than two weeks later, on Oct. 10, Navigator filed a motion with the Illinois Commerce Commission requesting to voluntary withdraw a permit application to build nearly 300 miles of CO2 pipeline within the state. The motion cited the company’s plans to reassess the route and other aspects of the Navigator Heartland Greenway pipeline project. READ MORE

Excerpt from Iowa Capital Dispatch: The pipeline projects are meant to capture lucrative federal tax credits for sequestering carbon dioxide, a greenhouse gas that is a primary driver of climate change. Ethanol plants would benefit from the tax credits and from producing low-carbon fuels that can be sold in stricter markets.

Pipeline opponents have argued that the projects pose safety risks to residents if they rupture, would damage farmland, and do not serve a public purpose that deserves the use of eminent domain to construct them.

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Landowners in the path of Navigator’s project who have refused to sign land easements were elated by its cancellation.

“It’s wonderful,” said Amy Solsma, an O’Brien County landowner who operates a pumpkin farm. “David slayed Goliath.”

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“We are going to stop the Summit and Wolf Carbon pipelines next,” Mazour said. “They will meet resistance at every level in every corner of every state.” READ MORE

Excerpt from Brownfield Ag News: Monte Shaw with the Iowa Renewable Fuels Association says the announcement was not a surprise and hopes similar projects move forward. “If we lose our focus on that, we’re not only going to go back to the 1990’s, but we would’ve done it to ourselves.”

He tells Brownfield carbon capture will help tap into the Sustainable Aviation Fuel (SAF) market. “There is a 100-billion-gallon SAF market out there that’s developing very quickly. If we want ethanol and corn to be a part of that, we need CCS, carbon capture. Carbon capture is literally the key that makes ethanol an attractive feedstock.”

Jan TenBensel is a Nebraska farmer and chair of the state’s ethanol board, and says farmers are missing out on a valuable market. “It’s important for the long-term viability for grain production the Midwest. That being said, pipelines have to be done correctly, and this is a process.”

He tells Brownfield he understands producers’ concerns about private property rights and eminent domain, but, “There should be willing buyers and sellers of easements. We’ve got a lot of pipelines around. If you ever have seen a pipeline map of the Midwest, we have pipelines all around. I’m surprised that there’s bedfellows that the pipeline discussion has made.”

The world’s largest biofuels producer, POET, had partnered to transport CO2. In a statement to Brownfield, a company spokesperson says POET believes that states that are slow to adopt technologies like carbon sequestration projects risk being left behind and are committed to pursuing viable technologies that create more access to fuel markets and add value to farmers. READ MORE

Excerpt from San Antonio Express News: Valero Energy Corp. leaders on Thursday told investors that the San Antonio-based oil refiner is still evaluating other projects to sequester carbon emissions after its pipeline partner scrapped multibillion-dollar plans last week.

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“We still see carbon capture and storage as a strategic opportunity to reduce the carbon intensity of conventional ethanol, which would also qualify it as a feedstock for sustainable aviation fuel,” Valero’s vice president of investors relations, Homer Bhullar, said during the company’s third-quarter earnings call on Thursday. “Without carbon capture and storage, conventional ethanol does not have a pathway into (sustainable aviation fuel) under today’s policies.”

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At least two other large pipeline projects in the Midwest could wind up joining Valero as a partner to replace Navigator, but the oil refiner didn’t offer specifics Thursday.

Valero has another ongoing $315 million project related to sustainable airplane fuel at Port Arthur, which is expected to be completed in 2025.

Once completed, the plant will have the option to upgrade up to half of its annual 470 million gallons of renewable diesel to sustainable aviation fuel, which would have similar properties to jet fuel but a smaller carbon footprint. READ MORE