The Andersons Renewables, an ethanol producer partially owned by a Marathon Oil subsidiary at the time of the proposal, has filed permit applications for a carbon sequestration project in Clymers, Indiana. The plan involves capturing carbon dioxide emissions from the ethanol production process, compressing the gas, and injecting it more than 3,000 feet underground into geologic formations for permanent storage. The company stated that seismic analysis and test wells have confirmed the site's suitability and that the process includes monitoring to protect groundwater and public health.
The project is part of a broader trend of carbon capture and storage (CCS) applications currently under review by the Environmental Protection Agency (EPA) and state regulators. These projects are eligible for federal tax credits under Section 45Q, recently expanded by the Inflation Reduction Act, which provides $85 per ton of stored carbon. Industry analysts from Enverus report that these incentives can match the revenue generated from ethanol production, leading to a significant increase in permit filings nationwide.
Residents in Clymers and surrounding areas have organized in opposition to the project. Community members, including resident Melissa Harrison, expressed concerns regarding potential impacts on property values and the existing industrial burden on the town, which currently hosts fertilizer and waste recycling facilities. Residents also noted that the company offered property owners $150 annually in exchange for underground storage rights.
The Intergovernmental Panel on Climate Change (IPCC) has identified CCS as a potential tool for mitigating global temperature increases, provided it is used alongside significant reductions in fossil fuel use. However, environmental organizations such as the Sierra Club and Earthjustice have criticized the technology, arguing that it serves as a subsidy for the fossil fuel industry and may not reduce emissions as effectively as a direct transition to renewable energy sources.