North Dakota Bill Would Benefit CCS Projects at Ethanol Plants

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January 26, 2021

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by Erin Voegele (Ethanol Producer Magazine) Representatives of the North Dakota ethanol industry on Jan. 20 testified in favor of a bill that aims to create a sales and use tax exemption for carbon dioxide used for secure geologic storage. The state’s senate voted in favor of the bill the following day.

The legislation, Senate Bill 2152 was introduced on Jan. 8 and referred to the Senate Finance and Taxation Committee. The committee held a hearing on the bill on Jan. 20. Members of the North Dakota Senate voted 47 to zero in favor of the bill on Jan. 21. The North Dakota House will now address the legislation.

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The state already exempts carbon dioxide used for enhanced oil recovery from sales and use tax. SB 2152 provides clarification that the same tax treatment can be extended to carbon dioxide used for secure geologic storage.

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Red Train Energy is currently working on a major carbon capture and storage (CCS) project.

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MidWest Ag Energy is also developing a CCS project at its Blue Flint Ethanol facility.

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“This bill is important to the continued development of that project as it is contemplated that our CO2 will be transacted as part of a partnership to develop our project,” Zueger (Jeff Zueger, member of the NDEPA and CEO of Midwest AgEnergy)wrote. “The CO2 transaction is simply a mechanism to separate the production of CO2 from the storage of CO2 and we believe should not be a taxable event as the CO2 is simply going to be injected into the earth as opposed to being released into the atmosphere as occurs today.”

Additional information on the bill and full copies of written testimony is available on the North Dakota legislature website. READ MORE

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