Green Plains (NASDAQ:GPRE) rallied 6.62% on April 29th after the company announced expansion of its carbon capture and storage projects. All five of its biorefineries – four in Nebraska and one in Shenandoah, Iowa, have now entered into a long-term carbon offtake agreement with Summit Carbon Solutions (SCS), a subsidiary of Summit Agricultural Group.
In Feb 18, 2021, the company announced carbon offtake agreements for three of its biorefineries. SCS – one of the carbon capture companies connecting industrial emitters with CCS infrastructure, will link the CO2 from Iowa to North Dakota for deposit into geologic sequestration. The large investments into CCS technologies are aligned with Green Plains’ vision to provide true low carbon sustainable products.
All five biorefineries will add a total of 658 million gallons of annual capacity to the carbon pipelines which translates into around 1.9 million tons of CO2 stored per year. The expansion project is expected to start operation in 2024.
“Expanding our partnership with Summit Carbon Solutions is critical to the ongoing transformation of our biorefinery platform,” said Todd Becker, president and CEO of Green Plains.
“The pure CO2 coming from our fermentation process is ideally suited for capture and long-term sequestration and we believe this carbon reduction could earn additional income from low carbon fuel standard credits, 45Q tax credits and voluntary carbon credit markets as they develop in the future,” he added.
The company is determined to become a leader in sustainable biorefining. Developing one of the world’s largest carbon capture plants fits into Green Plain’s long-term low carbon trajectory.
The jump of the company’s stock price on the news shows the market is welcoming with optimism the expansion of clean technologies. Over the last year, the stock price has rallied the astonishing 384.46% which shows it is enjoying a real bullish momentum. Expected profits from carbon tax credits support the economies behind the recently announced expansion of carbon capture and storage projects.