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A solution for decarbonizing ethanol could be at an impasse

The Navigator CO2 Pipeline project was put on hold earlier this week after it failed to receive approvals in the permitting process.

POET is part of that pipeline project, and CEO Jeff Broin tells Brownfield…

“Carbon dioxide has value. It will bring value back to crops and increase land values, but people have to agree to let these pipes run through their property so we’ll see where this ends up.”

He says there are other ways to decarbonize ethanol.

“However, it’s going to be more challenging to get the low carbon intensity score. It can be done, but it’s more expensive and difficult to finance.”

Broin says it’s something the industry needs to figure out.

“Ethanol uses 5 billion bushels of corn and in the future, it needs to use 7 to 8 billion bushels to keep the prices up. To do that, we need a low carbon intensity ethanol,” he says. “The oil industry will be interested in higher percentages if we have the low carbon intensity.”

He says decarbonization remains critical for the sector’s long-term growth.