Nebraska Aims to Store CO2 Below Ground

Nebraska is set to develop an entirely new industry that aims to store carbon dioxide from ethanol plants below ground. This industry could provide financial benefits for ethanol producers while simultaneously combating climate change. The industry will be explored by numerous companies who plan to partner with ethanol producers across the state. Some intend to develop methods to store the produced CO2 within the state, while others will lay below-ground pipes to transport it elsewhere.

Based on state Senator Mike Flood’s LB650 bill, other production facilities, such as power and fertilizer plants, are also eligible to participate. The general ideology will be the same across facilities. Rather than allowing CO2 to emit from a producer’s stacks, those stacks would be capped and route the carbon dioxide to a series of compressors. The CO2 is then converted into a transportable form such as liquid and stored well below the surface – at least 2,600 feet below.

One storage plan, outlined by Battelle, wants to put CO2 below the ethanol plants or within a couple miles of the plant. They intend to test their design in a region in the state with porous rocks below the surface to maximize carbon storage.

Another company, Navigator CO2 Ventures, will experiment with a pipeline network that will transport liquefied CO2 from Nebraska (and four other states) and store it below the Mount Simon Sandstone Formation. 

Once successfully implemented, a producer will receive a $50 tax credit for every metric ton of CO2 stored. In addition, as a producer stores more carbon dioxide, they reduce their CO2 intensity score and make their ethanol more widely sellable. For instance, California has strict regulations in place and can only purchase ethanol from producers with sufficiently low intensity scores.

The climate incentives are also significant. Navigator believes their pipeline plan could store carbon dioxide in volumes equivalent to the emissions of 2.6 million cars annually. 

Are you developing new software for an existing application? Did you know your development work could be eligible for the R&D Tax Credit and you can receive up to 14% back on your expenses? Even if your development isn’t successful your work may still qualify for R&D credits (i.e. you don’t need to have a patent to qualify). To find out more, please contact a Swanson Reed R&D Specialist today or check out our free online eligibility test.

Who We Are:

Swanson Reed is one of the U.S.’ largest Specialist R&D tax advisory firms. We manage all facets of the R&D tax credit program, from claim preparation and audit compliance to claim disputes.

Swanson Reed regularly hosts free webinars and provides free IRS CE and CPE credits for CPAs. For more information please visit us at or contact your usual Swanson Reed representative.

Recent Posts