With a stratigraphic well already completed, and ongoing modeling to determine volumes of carbon dioxide to be injected, Blue Flint in Underwood, North Dakota, is on its way to producing a zero-carbon fuel. The goal is prompted in large part by the 45Q tax credit, says Jeff Zueger, CEO of Midwest AgEnergy, Blue Flint’s parent company.
“45Q is a big driver,” Zueger says. “It unlocked the potential for these types of projects. The changes in 45Q have been a significant enabler to advancing these projects to make sure there’s enough economic opportunity there to support the risk that goes along with it.”
45Q provides a tax credit incentive for qualifying carbon emitters to capture and store carbon dioxide. Changes in 2018 extended the credit for two years and lowered the qualifying threshold for emitters from 500,000 metric tons of carbon dioxide to 100,000, opening the opportunity to more of the ethanol industry.