“Each carbon sequestration project that transports and injects large amounts of carbon dioxide deep underground is different. So, find out as much as possible about any project proposed near you. And if your land is impacted, don’t sign a contract until your lawyer reviews it.”
That advice comes from Hugh Caperton, senior vice president of development for Vault 44.01, a company specializing in developing and executing carbon sequestration projects, with headquarters in Denver.
“Our experience is with the carbon capture and storage process, referred to as CCS,” he explains. “Our goal is to utilize highly scalable decarbonization technology in a cost-effective way to permanently store carbon dioxide. Industrial firms that produce large streams of carbon dioxide, such as ethanol plants, are possible partners.
“Our goal for landowners is to be as transparent as possible. When you are honest and straightforward with people, you usually see a high participation rate.”
Cardinal Ethanol project
Currently, Vault 44.01 is preparing to implement a CCS project in partnership with Cardinal Ethanol in Randolph County, an ethanol plant started by farmers over 20 years ago to create a better market for corn in eastern Indiana.
“Each project is unique,” Caperton says. “The goal is to sequester all carbon dioxide emissions from the plant, which amounts to about 400,000 tons per year at Cardinal’s facility. The injection well where carbon dioxide is sent underground will be on Cardinal’s property, and the pipeline carrying carbon dioxide from the plant to the injection well is only about 600 feet. In many projects, the project is 3 to 7 miles long.”
Once pumped into the ground over 3,000 feet deep, carbon dioxide will disperse under other people’s properties. Vault 44.01 has entered contracts with landowners, with only a small percentage of land to be affected not yet under contract.
Caperton returned to Cardinal Ethanol in September to explain details to a meeting with plant administrators, board members and representatives from both Indiana Farm Bureau and the American Farm Bureau Federation.
“Our biggest concern is property rights and making sure our farmer- and landowner-members are treated fairly in these arrangements,” says Randy Kron, president of INFB. “We asked for the meeting so we could better understand the process and what farmers affected anywhere might expect.”
Carbon storage Q&A
Using the Cardinal Ethanol project as a backdrop, Caperton fielded questions that illustrate key points about CCS projects. Answers could be different for other projects.
How do you know the ground 3,000 feet deep is suitable to store carbon dioxide? Our geologic studies indicate if the underground structure is a likely candidate. Then, we do 2D and 3D seismic studies of the entire area which could store carbon dioxide. Those studies were completed here. There is lots of sandstone, which is porous and good for storing carbon dioxide. Reservoirs identified for safe, permanent storage are often almost a mile below the surface, with multiple layers of caprock, sometimes referred to as confining layers. That adds to the ability to store carbon dioxide safely and permanently.
Will the pipeline be buried? How do people know it is safe? Yes, it is buried, typically around 5 feet deep. When carbon dioxide is in the pipeline and injected into the well, it has properties like a liquid. There are isolation valves installed in the line should it be necessary to shut down a section. Pressure and temperature will be monitored remotely 24 hours per day. Safety is our top priority.
Tax credits and government incentives make this project possible. What if these premiums and credits disappear? Federal administrations of both major parties have supported this activity over the past 20 years, no matter which party was in power. We believe odds are high that there will continue to be federal support.
Most people in the Cardinal project have signed contracts. Will everyone eventually participate? That is our goal. Currently, we are at 97%. We are allowed by law to go forward if we have 70% participation, but we strive for 100%. We don’t pressure people. In fact, we ask them to take the contract to their lawyer before signing.
Carbon dioxide will wind up in spaces under land closer to the injection well first. Do you only pay people farther away once it reaches their location? No. We pay everyone receiving a contract from the start, but not every company does so.
Farm Bureau leaders learn about sequestration
You may have seen signs in rural areas stating opposition to carbon sequestration projects and proposed pipelines. That’s especially true if you live in the Midwest. Zippy Duvall, president of the American Farm Bureau Federation, says those types of projects have not yet come to his neighborhood in Greene County in east-central Georgia.
“We get questions about them from members, but I didn’t have enough understanding to render judgment,” Duvall said, after hearing a presentation about the Cardinal Ethanol carbon capture and storage project near Union City, Ind. “I wanted to know more so I could understand why members were asking questions. Many of their questions relate to property rights.”
Randy Kron, an Evansville, Ind., farmer and president of Indiana Farm Bureau, helped arrange for Duvall to visit the facility. “We know these guys and the company handling the project are doing it right, so we wanted to visit here,” Kron says. He adds that carbon sequestration and possible impact on INFB members will be an issue to watch going forward.
“We want to make sure members are compensated fairly if they participate in this type of project,” Kron says. Indiana law, passed recently with support from INFB, requires landowners to be compensated for subsurface rights for such things as underground storage of carbon dioxide.
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