This week, Governor Eric Holcomb signed a bill to create the legal framework for carbon capture and underground storage of CO2 in Indiana.
Many believe the new bill will have a pivotal role for northwest Indiana in the budding carbon industry and might even make it one of the nation’s largest carbon sequestration hubs and centers for hydrogen production.
Paul Mitchell, CEO of Indianapolis-based Energy Systems Network, is certain that Indiana is uniquely positioned to become one of the most important locations for carbon storage in the country.
The state’s underground geological formations, typically called saline aquifers, that are particularly found in its northern part are ideally suited for carbon capture and sequestration.
Thanks to the new law, companies that are looking to reduce their carbon footprint will now be able to ship their captured CO2 emissions to these underground pockets via pipelines for permanent storage.
Not only will this benefit the environment, it will also be beneficial to the economy, by supporting the jobs in hard-to-abate industries that can now slowly but surely start their decarbonization journey.
Furthermore, CO2 is a traded commodity with demand increasing by the day, especially in the wake of raging carbon dioxide shortages, for instance, in the food and beverage sector.
Hence, the new legislation can help unlock further opportunities for manufacturing in the region.
What sets Indiana apart from other states with this bill is that the state now has a permit program set up, which is an effective means of cutting down regulation costs and will help encourage investments.
With that said, the law may even provide an opportunity for Indiana to profit on CO2, be it via fees or taxes for sequestering carbon emissions at the various sites throughout the state.