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CO2 pipeline revenue dangled at ethanol forum

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http://www.ne-ethanol.org/?page=news&article=138

 

CO2 pipeline revenue dangled at ethanol forum

A Wyoming oil company told Nebraska ethanol producers Friday that a $1 billion carbon dioxide pipeline across the state would mean up to $50 million a year in new revenue for them.  Scott Hornafius, president of Elk Petroleum, said such a pipeline would buy some or all of the CO2 produced by the state’s 24 ethanol plants and ship it to Wyoming, where it is needed for injection into oil wells. The CO2 helps drillers extract almost as much oil as the initial strike, about 17 percent of the well’s total.

 

For now, the CO2 pipeline is just a dream, without financial backers or cooperating ethanol plants. But Hornafius said the state’s ethanol plants produce about 5 million metric tons of CO2 a year as a natural byproduct of the process. Iowa, with 42 ethanol plants, should also be part of the pipeline, Hornafius said.  “It is an enormously underutilized resource,” said Hornafius, speaking to people gathered for the Nebraska Ethanol Board’s 2014 conference in the Magnolia Hotel in Omaha.

 

The proposal envisions an underground pipeline stretching more than 1,000 miles through the Iowa/Nebraska ethanol trail. It would start in about the middle of Iowa, near the border with Illinois, moving across central Iowa. It would enter Nebraska at Omaha, then jog south for most of its Cornhusker journey before heading north into Wyoming.

 

Hornafius said it is not unreasonable for the project to get underway in three years. He said major financing would have to emerge, probably from the large oil producers operating in Wyoming.  Then there is the gaining of rights of way from landowners and the other legal concerns, followed by a one-year construction phase at a cost of $1 million per mile.

 

The pipeline would be willing to pay about $10 a metric ton for the CO2, Hornafius said....

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It's something that can always come to fruition. I got to thinking today about how awesome it would be to capture and store carbon monoxide from homes and have ethanol plants pick up loads of it to produce ethanol. Plenty of homes have levels of Carbon monoxide that flare for various reasons... this way, not only do you prevent a lot of people from dying from this colorless, odorless gas, but you turn it into something good!

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Well I am a lot out of date on this topic regarding the current CO2 market prices and while the purity of this CO2 for oil well recovery is likely much poorer- we sold CO2 of food grade quality (not the higher beverage grade) for a price in the 20's/ standard ton FOB our plant. It was used as dry ice for meat chilling in a packing plant. While the purity of this stuff for the pipeline might be easier to process I am thinking that given all the compression energy required then $10/ metric ton is a certain loser UNLESS this puts the plant's ethanol rating into an advanced ethanol RIN type. B)

Edited by 1outlaw

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