Midstream infrastructure company Navigator CO2 Ventures will provide POET, a leader in the sustainable bioproducts industry, with carbon capture, utilization, and storage (CCUS) on its Heartland Greenway, the two companies reported on June 7.
The project will also focus on a central carbon offset marketplace and distribution network. It will create a removal-based credit space in the voluntary carbon market to offset CO2 emissions and regulated CO2 emission programs.
“The agreement outlines Navigator’s integrated CCUS services for approximately 5 million mt of POET’s biogenic CO2 annually and establishes a collaborative path for the development of a central carbon offset marketplace and carbon use logistics platform,” the statement reads.
The project, which is expected to become operational in 2025, will include 18 of POET’s facilities in Iowa, Nebraska, and South Dakota.
According to the statement, the partnership will deliver CCUS services to over 30 industrial agriculture and food processors, “representing over 10 million [mt] of annual CO2 emissions, including the two largest bioethanol producers in the United States, in addition to highly efficient single-site production facilities.”
Back in March 2021, Navigator CO2 Ventures partnered with Valero, a Fortune 500 manufacturer and marketer of fuels, and BlackRock Global Power & Infrastructure Fund to establish a large-scale C02 capture and storage pipeline that connects Valero’s ethanol plants to an Illinois-based storage site.
The pipeline – which will be 1,200 miles long – will start working by the end of 2024 across Nebraska, Iowa, South Dakota, Minnesota, and Illinois.
As a result of the collaboration with POET, Navigator CO2 Ventures will deliver as much as “15 million [mt] annually of CCUS services through new pipeline laterals and the parallel development of multiple storage sites.”
The demand for voluntary tech-based carbon capture credits is increasing, together with regulated markets such as California’s Low Carbon Fuel Standard and other monetization offsets.
In 2022, the average price of CO2 capture tech is $139.94/mtCO2, which is higher than the average for last year ( $105.14/mtCO2), as reported in the S&P Global Commodity Insights podcast.
On the other hand, some regulated market credit prices have started to drop as more projects start operating, said Tudor Pickering Holt analyst Matthew Blair. California’s low-carbon fuel standard credit prices “continue to sell off in June,” he said, and are $91/mt in Q2, as compared to $121/mt in Q1.