By Léa Douglas
(Reuters) – Summit Carbon Options’ huge carbon dioxide pipeline challenge proposal ought to be re-evaluated if the USA repeals tax credit for carbon seize and storage, a lawyer for the corporate stated on Thursday .
Summit intends to seize carbon dioxide from 57 ethanol crops throughout the Midwest and transport it alongside a greater than 2,000-mile-long pipeline to North Dakota for storage beneath land, in what can be the biggest challenge of its sort on the planet.
However the proposal builds on the 45Q tax credit score program, which was expanded by the Inflation Discount Act of 2022, providing $85 per ton of carbon sequestered.
New US President Donald Trump has vowed to cancel all unspent IRA funds, arguing that President Joe Biden’s landmark local weather change regulation is dear and pointless. Altering the IRA would require an act of Congress.
Summit lawyer Christina Brusven was requested throughout a Minnesota Fee listening to Thursday whether or not the challenge would nonetheless be financially viable if the tax credit score have been repealed.
Brusven stated the tax credit score is essential to the corporate’s enterprise mannequin and repealing it “would definitely end in a reevaluation.”
The Minnesota PUC voted Thursday to approve a 28-mile stretch of pipeline within the state. Summit hopes to finally function 245 miles (394 km) of pipeline in Minnesota and would require extra allowing processes for the remaining miles.
CURE, a Minnesota environmental group against the pipeline, had argued that the fee’s assessment of the challenge’s environmental impression was insufficient.
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