Wolf Carbon Solutions, ADM Announce Partnership to Advance Decarbonization of Ethanol Production

(ADM) Wolf Carbon Solutions US LLC (Wolf Carbon Solutions) and ADM (NYSE: ADM), a global leader in nutrition and agricultural origination and processing, today announced that they have signed a Letter of Intent paving the pathway toward further decarbonization of ADM’s footprint via construction of a pipeline – developed, owned and operated by Wolf Carbon Solutions – which, together with a commercial agreement, will allow for the capture, compression and transportation of carbon dioxide produced at ADM’s Clinton and Cedar Rapids, Iowa, facilities.

Designed as the backbone infrastructure needed to support the region’s lower carbon transition, the 350-mile steel trunk line will be capable of transporting 12 million tons of CO₂ per year. The pipeline will offer dedicated capacity to transport CO₂ from ADM’s ethanol and cogeneration facilities in Clinton and Cedar Rapids to be stored permanently underground at ADM’s fully permitted and already-operational sequestration site in Decatur, Illinois. The pipeline would have significant spare capacity to serve other third-party customers looking to decarbonize across the Midwest and Ohio River Valley.

“This partnership is an excellent example of industries working together to decarbonize and deliver upon their ESG strategies and commitments,” said David Schmunk, President, Wolf Carbon Solutions. “Our organizations offer a great combination of complementary skills and experience — ADM with more than 10 years of experience owning and operating CO₂ sequestration wells, and the Wolf Carbon Solutions team with expertise in owning and operating carbon capture facilities and pipeline transportation systems, including North America’s largest third-party CO₂ pipeline in Alberta, Canada. We are delighted to share our expertise to further the effort to develop low carbon fuels in the U.S.”

ADM’s carbon capture and sequestration capabilities in Decatur have allowed it to safely and permanently store more than 3.5 million metric tons of CO₂ a mile and a half under the surface of the earth, and have paved the way for increased decarbonization of the company’s operations, including its announcements in 2021 of a partnership to construct a zero-emissions power plant adjacent to the company’s Decatur corn complex, and its achievement of the wheat milling industry’s first carbon-neutral footprint.

“ADM is continuing to lead the way to decarbonize the industries in which we operate,” said Chris Cuddy, President, Carbohydrate Solutions for ADM. “Customers are increasingly turning to us to help them meet their Scope 3 emissions commitments with low carbon-intensity sustainable solutions. This is an exciting opportunity for ADM to connect some of our largest processing facilities with our carbon capture capabilities, advancing our work to significantly reduce our CO₂ emissions while delivering sustainable solutions for our customers. These efforts are core to our purpose, our culture and our growth, and we look forward to working with Wolf Carbon Solutions to finalize this agreement and further decarbonize our operations and our industry.”

Wolf Carbon Solutions US LLC (Wolf Carbon Solutions) is a private company backed by Canada Pension Plan Investment Board (CPP Investments). Wolf Carbon Solutions is an affiliate of Wolf Midstream (Wolf), a $4 billion multi-faceted energy infrastructure organization based in Calgary, Alberta. The company is committed to transforming the future of carbon reduction through the development of world-scale CO2 infrastructure in the U.S. and Canada. Wolf constructed and operates the Alberta Carbon Trunk Line (ACTL) system – a fully-integrated, world-scale carbon capture, utilization and storage (CCUS) system that captures, transports and permanently sequesters CO2 that would otherwise be emitted to atmosphere. The ACTL system has safely delivered over two million tons of CO2 to permanent storage since the system began operations in 2020.

At ADM, we unlock the power of nature to provide access to nutrition worldwide. With industry-advancing innovations, a complete portfolio of ingredients and solutions to meet any taste, and a commitment to sustainability, we give customers an edge in solving the nutritional challenges of today and tomorrow. We’re a global leader in human and animal nutrition and the world’s premier agricultural origination and processing company. Our breadth, depth, insights, facilities, and logistical expertise give us unparalleled capabilities to meet needs for food, beverages, health and wellness, and more. From the seed of the idea to the outcome of the solution, we enrich the quality of life the world over. READ MORE / MORE

Excerpt from The Gazette: Companies that sequester carbon are eligible for federal tax credits of up to $50 per metric ton. By reducing the carbon footprint of ethanol production, these companies hope to make the fuel more competitive in states, like California, with low carbon fuel standards.

Navigator, a Texas company, is proposing a 1,300-mile pipeline that would pass through 36 Iowa counties, including Linn, Benton, Cedar, Delaware and Iowa, capturing carbon dioxide at ethanol and fertilizer plants. The gas would be put under pressure, turned into liquid and piped to a site in south-central Illinois — near the ADM site.

Summit Carbon Solutions is planning a 2,000-mile C02 pipeline through Iowa to North Dakota. The company announced in December it has started drilling test wells in three places in the Williston Basin in North Dakota.

The Iowa Utilities Board would have to approve any pipeline projects, including the potential step of using eminent domain to force the sale of easements to the companies

On Monday, the Linn County Board of Supervisors signed a letter opposing use of eminent domain for CO2 pipelines.

Many landowners on the pipelines’ proposed routes have decried the projects at informational meetings around the state since November. Linn County residents expressed concerns at a Dec. 6 meeting about eminent domain, safety of the pipelines and whether the companies should get tax credits for projects that may make money for the owners but not help Iowans or the environment.

Some environmental groups have said the pipelines distract from better ways to reduce greenhouse gases.

“Carbon capture and storage is an unproven and unsound technology that will do nothing to mitigate the climate crisis,” Food & Water Watch Senior Iowa Organizer Emma Schmit said in a statement Tuesday after the ADM announcement. “It’s an industry scam and distraction from the real work of reforming our agricultural and energy sectors to combat the looming climate emergency.” READ MORE