Moratorium Approved in Wabash Co.
A proposed carbon capture and storage project near North Manchester is drawing opposition from neighboring landowners who are concerned about the project's environmental and health risks.
The bioenergy company Poet wants to capture the carbon dioxide (CO) from its ethanol production process and permanently store it deep underground. The company says seismic tests confirm that the geology surrounding the Poet facility is "well-suited" for this project, even in the unlikely event that an earthquake were to occur.
"This isn't a new or experimental technology; it's been done safely for decades," David Pyle, general manager at Poet's North Manchester ethanol plant, said in an email. "The project poses minimal risk, as all carbon capture and storage will occur entirely on-site."
Still, one of Poet's neighbors, Josh Leffel, said the company isn't being forthcoming with details about the project. Also, he said he found out about the seismic tests as they were happening last year.
"I heard a bunch of really loud banging," he said, "and I'm talking like earthquake-type booming going on. It was shaking the house. And I thought, 'What in the world is going on?'"
He came out of his house and saw a truck that had the words "seismic testing" printed on the side. He then asked a local farmer what he knew, and the farmer told Leffel that Poet was conducting tests to see how the ground would react to an earthquake.
According to Leffel, Poet had already informed that farmer about the tests. He was told that the company held a meeting with several farmers and landowners. However, Leffel, who lives one mile away, wasn't invited.
"It just kind of made my blood boil," he said.
Leffel learned that Poet wanted to inject 250,000 tons of pressurized CO, in liquid form, into the ground annually for 12 years. The CO would be stored at a depth of over 3,200 feet.
Pyle said the area, located just south of North Manchester, is "well-suited for the safe, permanent storage of CO deep underground. This means we can complete capture and injection entirely on-site without the need for a pipeline."
Back in March, Leffel and dozens of others attended a public hearing about the carbon capture project. Leffel said most of the people who spoke were against the company's plans.
County plan commission director Brian Campbell said carbon capture has become a "hot button" issue in Wabash County. On Monday, the county commissioners voted to impose a moratorium on such projects until the county can write new rules governing them.
The Poet ethanol plant started operations in 2008, buying local corn and converting it into ethanol. This process brings added value to farmers' grain.
With the increased emphasis on reducing carbon emissions, Poet and other bioenergy companies are looking to lower their respective carbon scores.
"The marketplace is demanding lower-carbon biofuels," Pyle said. "Poet must adapt to stay competitive, and capturing CO will unlock new market opportunities for biofuels and locally grown grain.
"Capturing value from CO in North Manchester will yield new jobs, local investment, sustained economic growth, and generate an estimated $300,000 annually in local property taxes," he added. "It also supports family farmers, providing expanded markets and adding value to every bushel of corn and every acre of land."
Pyle said the company currently receives 90 truckloads of corn daily from approximately 900 farmers in northern Indiana. The corn is processed into ethanol, high-protein animal feed and corn oil.
He added that about half of Poet's 33 facilities bottle CO for various industrial uses, but the North Manchester facility does not do that.
With its current process, Pyle said ethanol is produced as part of a closed-loop, biogenic, or naturally produced, carbon cycle. The CO emitted during fermentation originates from the corn itself—CO that was absorbed from the atmosphere during the growing season.
"Because of this natural exchange, no new carbon is added to the atmosphere; rather, the process returns carbon that was recently removed, preserving balance within the carbon cycle."
With this proposed project, Poet will capture and permanently store that biogenic CO through carbon sequestration, rather than allowing it to go back into the air.
"By preventing its return to the atmosphere, the project will effectively reduce the total atmospheric carbon load, transforming a neutral process into a net-negative emissions strategy."
Through carbon capture, Poet will be in position to collect as much as $21.5 million annually in taxpayer money through a tax credit known as 45Q. A Poet spokesperson, Erin Branick, said the potential value of the tax credit depends on various factors.
"Like farmers using conservation programs, 45Q tax credits are designed to encourage good practices—in this case, reducing atmospheric carbon emissions," Pyle said. "Tax incentives play a critical role in helping projects like Poet's reach commercial viability by bridging the gap between early capital costs and long-term climate and economic benefits."
Leffel works as a machinist. He and his family have lived in their home for five years. Before the seismic tests occurred, he considered Poet to be a good neighbor.
With the carbon capture project, however, he is concerned about what might happen in a worst-case scenario. One example would be if corrosion degraded the metal parts and caused a release of CO into the groundwater or air.
"It's heavier than air, so it will drop down and displace the oxygen," Leffel said.
He also questions what would happen if Poet or its technical partner, Vault 44.01, declared bankruptcy or went out of business for some reason. He said the carbon storage will need to be monitored for at least 50 years. According to Leffel, Poet said it has set aside $10 million for that contingency, but Leffel said he isn't convinced that the biofuels company and its partner will still be in business that long.
According to Pyle, the deep, underground location for carbon sequestration is "secured by multiple layers of natural and engineered containment."
There is a thick, porous layer of sandstone with strong caprock above. Pyle said these are critical features for secure containment. In addition, the U.S. Environmental Protection Agency will conduct a "rigorous" review and permitting process to verify long-term geological integrity and environmental safety, he said.
"Although this project does not require a transport pipeline, Poet will still meet or exceed all applicable federal standards, including those governed by the Department of Transportation. Redundant safety systems, real-time monitoring and automatic shutdown protocols ensure the protection of our team members, surrounding communities and the environment. We're working with expert engineers and regulators to meet or exceed every standard."
Leffel said Vault 44.01 is a 4-year-old company and has never overseen a carbon capture project on this scale. He feels like Poet and Vault 44.01 are conducting a science experiment and the neighbors are guinea pigs. He started a YouTube channel to express his outrage.
He is not alone in his opposition to the project. Yard signs declaring "No Carbon Capture" are clearly visible on S.R. 13, C.R. 900 and other areas south of the city.
Leffel added that most of the local farmers quietly oppose the project.
"However, they are also scared to death that Poet won't buy their corn if they fight too hard openly," he said. "So, they feed me this information because they (Poet) can't take anything from me. I'm not a farmer."