Summit carbon mission can be reassessed if tax credit repealed, lawyer says

By Leah Douglas

(Reuters) – The Summit Carbon Options’ huge carbon dioxide pipeline mission proposal would should be reassessed if the US repeals tax credit for carbon seize and storage, an organization lawyer mentioned on Thursday.

Summit intends to seize carbon dioxide from 57 ethanol vegetation throughout the Midwest and transport it alongside a pipeline greater than 2,000 miles (3,218 km) lengthy to North Dakota to be saved underground, in what can be the world’s largest mission of its sort.

However the proposal depends on the 45Q tax credit score program, which was expanded by the 2022 Inflation Discount Act, providing $85 per ton of sequestered carbon.

Incoming U.S. President Donald Trump has promised to rescind all unspent funds from the IRA, 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, at a listening to earlier than the Minnesota Public Utilities Fee on Thursday, was requested whether or not the mission would nonetheless be financially viable if the tax credit score was repealed.

Brusven mentioned the tax credit score is essential to the corporate’s enterprise mannequin and a repeal “would undoubtedly trigger a reassessment.”

Minnesota’s PUC will determine on Thursday whether or not to allow a 28-mile (45 km) phase of the pipeline within the state.