Sequestration agreement will decarbonize biofuel production in Nebraska, lay foundation for regional CO2 pipeline network and sequestration hub
DENVER–(BUSINESS WIRE)–Tallgrass announced it has entered into an agreement with ADM that would pave the way for Tallgrass to capture carbon dioxide (CO2) from ADM’s corn-processing complex in Columbus, Neb., and transport it to Tallgrass’ Eastern Wyoming Sequestration Hub for permanent underground storage. By utilizing a converted natural gas pipeline for CO2 transportation, Tallgrass minimizes the need for new pipeline infrastructure while enabling ADM, a global leader in sustainable products, to further decarbonize its global operations and strengthen Nebraska’s agriculture industry.
Tallgrass is advancing a project to convert its Trailblazer natural gas pipeline to CO2 transportation service and establish an approximately 400-mile CO2 pipeline to serve as the backbone of a regional CO2 transportation system. The pipeline, which runs through Wyoming, Colorado, and Nebraska, will be capable of transporting more than 10 million tons of CO2 per year for permanent sequestration and is ideally situated to transport CO2 from ADM’s plant and other commercial and industrial sources to a sequestration hub in eastern Wyoming. In preparation for this initiative, Tallgrass recently announced plans to develop a commercial-scale CO2 sequestration hub in eastern Wyoming expected to be in service in 2024.
“We are excited to work on this project with ADM, a company that’s already demonstrated it is on the cutting edge of carbon capture,” said Kyle Quackenbush, segment president at Tallgrass. “We’re able to repurpose existing infrastructure to create significant CO2 transportation capacity without impacting natural gas service in that region. At the same time, we are enabling customers to meet their decarbonization goals, as well as minimizing environmental and landowner impact. Our CO2 pipeline will be capable of transporting significant additional CO2 volumes to accommodate the capture, transportation, and sequestration of many other emissions sources in the region.”
“Nebraska Farm Bureau’s farm and ranch member families have long supported pipeline projects for use as part of our nation’s important energy and carbon capture infrastructure,” said Mark McHargue, president of the Nebraska Farm Bureau. “As those who rely upon our nation’s natural resources to produce the world’s food, fiber, and fuel, Nebraska’s farmers and ranchers are also dedicated to ensuring their future use for generations. Projects like these provide agricultural producers with options that add value and support key industries like ethanol production, while continuing to steward the land and climate families rely upon.”
“ADM is meeting growing customer demand, advancing our strategy and living up to our purpose by continuing to lead in the decarbonization of our industry,” said Chris Cuddy, president of ADM’s Carbohydrate Solutions business. “Earlier this year, we announced an agreement that would allow us to sequester carbon from two of our biggest processing facilities in the U.S., and now we’re looking forward to working with Tallgrass to continue our work towards meeting our decarbonization goals. Carbon sequestration is a key way in which we’re evolving our Carbohydrate Solutions business, one that has already allowed us to deliver the industry’s first net zero emission wheat milling footprint and will continue to enable us to advance our strategy and scale up our work to meet ever-expanding needs and make a positive impact for global populations.”
Tallgrass is a leading energy infrastructure company focused on safely, reliably and sustainably delivering the energy and services that fuel homes and businesses and enable quality of life. We are committed to being at the forefront of efforts to decarbonize our world. An investor group led by Blackstone Infrastructure Partners, which includes Enagás SA, GIC, NPS and USS, owns the outstanding equity interests in Tallgrass. Visit Tallgrass.com to learn more.
About Nebraska Farm Bureau
The Nebraska Farm Bureau is a grassroots, state-wide organization dedicated to supporting farm and ranch families and working for the benefit of all Nebraskans through a wide variety of educational, service, and advocacy efforts. More than 55,000 families across Nebraska are Farm Bureau members, working together to achieve rural and urban prosperity as agriculture is a key fuel to Nebraska’s economy. For more information about Nebraska Farm Bureau and agriculture, visit www.nefb.org.
ADM unlocks the power of nature to enrich the quality of life. We’re a premier global human and animal nutrition company, delivering solutions today with an eye to the future. We’re blazing new trails in health and well-being as our scientists develop groundbreaking products to support healthier living. We’re a cutting-edge innovator leading the way to a new future of plant-based consumer and industrial solutions to replace petroleum-based products. We’re an unmatched agricultural supply chain manager and processor, providing food security by connecting local needs with global capabilities. And we’re a leader in sustainability, scaling across entire value chains to help decarbonize our industry and safeguard our planet. From the seed of the idea to the outcome of the solution, we give customers an edge in solving the nutritional and sustainability challenges of today and tomorrow. Learn more at www.adm.com.
Cautionary Note Concerning Forward-Looking Statements
Disclosures in this news release contain forward-looking statements. All statements, other than statements of historical fact, included in this press release that address activities, events or developments that management expects, believes or anticipates will or may occur in the future are forward-looking statements. Without limiting the generality of the foregoing, forward-looking statements contained in this press release specifically include the successful development and execution of the referenced pipeline conversion project and regional CO2 transportation system; the successful development and completion of the referenced commercial-scale Eastern Wyoming Sequestration Hub; the timing of the completion of the development of the referenced projects; the expectation that these projects will achieve the stated CO2 transportation capabilities and stated or implied decarbonization and clean energy goals; and the expected benefits, economic or otherwise, of the proposed Agreement and referenced projects to ADM, Nebraska and the broader Midwest region. Such statements are subject to a number of assumptions, risks and uncertainties, many of which are beyond the control of Tallgrass, which may cause actual results to differ materially from those implied or expressed by the forward-looking statements, and other important factors that could cause actual results to differ materially from those projected, including those set forth in reports and financial statements made available by Tallgrass. Any forward-looking statement applies only as of the date on which such statement is made, and Tallgrass does not intend to correct or update any forward-looking statement, whether as a result of new information, future events or otherwise, except as required by law.
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