Plans withdrawn to build CO2 pipeline through Illinois, Iowa

[December 05, 2024]  By Kevin Bessler | The Center Square

(The Center Square) – Environmental groups are applauding a Colorado company’s decision to withdraw an application to build a CO2 pipeline through Illinois.

Last year, Wolf Carbon Solutions withdrew its request to build a 260-mile pipeline from Iowa through Illinois after receiving a denial from the Illinois Commerce Commission. The company said it would refile the permit application, but had second thoughts.

In its filing to the Iowa Utilities Commission, the company said “a number of factors have continued to delay Wolf’s ability to proceed with the project and Wolf has decided to cease pursuit of the required regulatory approvals at this time.”

“Wolf’s withdrawal of its application in Iowa is evidence the project may now be completely dead,” said Pam Richart, coordinator of the Coalition to Stop CO2 Pipelines. “The cancellation is a significant victory for landowners and communities along Wolf’s route through all nine Illinois counties that would have been affected.”

Last October, Navigator withdrew its carbon dioxide pipeline permit application in Illinois. The company’s proposed 1,350-mile pipeline system suffered a setback in South Dakota when state regulators denied a construction permit.

Richard added that they are still waiting for updated federal rules regarding pipeline projects.

“The Pipeline and Hazardous Materials Safety Administration has yet to issue new rules that would govern the design and oversight of CO2 pipelines,” said Richart.

An image of various downloadable signs from noillinoisco2pipelines.org - Greg Bishop / The Center Square

Earlier this year, Gov. J.B. Pritzker signed legislation that created standards for the carbon capture and storage industry, and included a pause on carbon pipelines until July 2026, but said he is a fan of such technology.

“This bill adds carbon capture to the growing list of new and burgeoning industries built right here in our state,” said Pritzker.

Agriculture groups, including the Illinois Farm Bureau, are upset about the lack of protection for property owners who could have pipelines running under their land without required adequate compensation.

Another county in Illinois is regulating carbon sequestration projects. Officials said Ford County’s ordinance is designed to be put in place after the moratorium ends in order to ensure there is a process in place if the state does not act.

Joyce Harant, president of Citizens Against Predatory Pipelines, said she is pleased to see Wolf withdraw from Iowa.

“CAPP remains wary and ready to act as long as taxpayer funded 45Q tax credits are available to entice Wolf and CO2 producers to criss-cross Illinois with CO2 pipelines, capture and sequestration infrastructure," said Harant in a statement. “We will continue to hold Wolf and other companies accountable for making their project proposals transparent, research based and committed to the highest standards for the public's safety.”