Summit Carbon Solutions announced a new partnership with NuGen Energy, an ethanol plant in Marion, South Dakota.
The ethanol plant is owned by American producer and retailer of ethanol and natural gas REX American Resources (NYSE: REX).
With this new partnership, NuGen is joining the ranks of 32 other major ethanol plants in the country that are brought together by Summit Carbon Solutions major carbon capture project.
Summit is currently working towards building a 2,000-mile carbon pipeline set to pass across five US states: Minnesota, Nebraska, Iowa and the Dakotas.
The vast pipeline project set to cost the company $4.5 billion has still yet to receive easements from landowners and permits in all five states.
The NuGen Energy ethanol plant has been in operation since 2008 and can produce a whopping 150 million gallons of ethanol per year, which also translates to a significant amount of CO2 emissions annually.
Once equipped with carbon capture technology, it will be able to prevent 450,000 tons of CO2 from entering the atmosphere annually.
Summit’s project is expected to transport and store a total of up to 18 million metric tons of carbon emissions per annum, thus noticeably reducing the ethanol industry’s carbon footprint and making the participating ethanol producers more competitive.
Lee Blank, CEO of Summit Carbon Solutions, commented on the new partnership by saying: “NuGen shares our dedication to supporting the long-term sustainability of U.S. agriculture by decarbonizing the supply chain. NuGen’s commitment to quality, yields, and efficiency aligns perfectly with our vision.”
In turn, Rex American Resources CEO Zafar Rizvi also expressed his delight to be teaming up with Summit on what is said to be the world’s largest carbon capture and storage (CCS) project.
According to Rizvi, the strategic location of the NuGen facility is in perfect alignment with both companies’ goals to slash greenhouse gas emissions and reach sustainability targets.