Ethanol Blog

LINCOLN, Neb. (DTN) -- Conestoga Energy is moving forward with a carbon capture and storage project at the company's Bonanza BioEnergy ethanol plant in Garden City, Kansas, announcing on Wednesday that it has successfully completed drilling operations for its first well designed to permanently store carbon from the plant.

The company said in a news release that it plans to submit a Class VI well permit application to the U.S. Environmental Protection Agency this summer. According to the EPA there are 175 well applications and 60 projects currently under review.

The Class VI well is engineered to inject carbon dioxide more than one mile underground.

"The project will enable Conestoga to capture and store 100% of the CO2 emissions generated from its bioethanol production process," Conestoga said on Wednesday.

"Once operational, the facility will sequester over 150,000 metric tons of CO2 annually. Additionally, the project presents opportunities to store CO2 from third-party sources, allowing Conestoga to earn additional carbon credits."

Conestoga said the well located 14 miles from Conestoga's enhanced oil recovery site and enables 100% of the captured CO2 to be used for enhanced oil recovery. The technique involves injecting CO2 into mature oil fields to restore depleted reservoir pressure and increase production efficiency while simultaneously storing carbon underground.

The company said the technique offers both "economic returns and emissions reductions in line with Conestoga's financial and carbon management goals."

Conestoga said it previously purchased equipment and a CO2 flood field, as well as leases and easements for the Class VI well, from a third party in 2024. The company was the first ethanol producers to sequester CO2 for enhanced oil recovery.

"This milestone further advances our mission of being the leading provider of low-carbon-intensity biofuel and reflects our deep commitment to innovation and sustainability in bioethanol production," Conestoga CEO Tom Willis said in a news release.

"Carbon capture and sequestration is a proven solution that allows us to dramatically cut emissions while also expanding our presence in the growing, low carbon fuel markets, both domestically and internationally, unlocking additional financial value."

Conestoga Energy is headquartered in Liberal, Kansas, and owns two ethanol plants and manages over 200 million gallons per year along with related co-products across Kansas and Texas.

Conestoga has been capturing CO2 for more than 15 years primarily for enhanced oil recovery and generates both corn-based ethanol and cellulosic biofuel renewable identification numbers, or RINs.

Todd Neeley can be reached at todd.neeley@dtn.com

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