Hoeven: Continental Resources Invests $250 Million Into Summit Carbon Solution's Biofuel CCUS Project
Hoeven Established Regulatory Framework, Secured State’s Primacy over Class VI Wells to Enable Carbon Storage Projects
WASHINGTON – Senator John Hoeven today issued the following statement after Continental Resources announced a $250 million investment into Summit Carbon Solutions’ carbon capture, utilization and storage (CCUS) project. The system will be the largest CCUS project of its kind and is projected to have initial pipeline capacity of 12 million tons of CO2 per year, which will be captured and transported from biofuel facilities in five states to North Dakota for permanent geologic storage.
Projects like this are possible due to Hoeven’s efforts for more than 14 years at both the state and federal level to develop the right legal, tax and regulatory environment for CCUS technologies. This includes:
- As governor, implementing a regulatory framework for carbon storage in the state when he:
- Established the North Dakota CO2 Storage Workgroup in 2008.
- Advanced a bill through the legislature to grant this authority to the North Dakota Industrial Commission.
- The state also enacted legislation that granted ownership of the pore space to the owner of the overlying surface estate.
- As U.S. Senator, securing approval of the state’s application for regulatory primacy over the use of Class VI wells for geologic storage of CO2.
- North Dakota is one of only two states to have this regulatory authority.
- Implementing and enhancing the 45Q tax credit, one of the most important incentives to make CCUS projects commercially-viable.
“Continental Resources has a long history of investment and innovation in North Dakota. Now, they get to be part of this important CCUS effort, which will enable biofuel producers in North Dakota and our region to access low-carbon fuel markets, providing an important source of revenue for the biofuel plants, farmers and landowners,” said Senator Hoeven. “It’s important to remember how we got to the point where such a massive project is even possible. It takes the right legal, regulatory and tax environment, and in North Dakota, we are ahead of the curve. We’ve been working to make this possible for more than 14 years. In 2008, as governor, I put together a plan for the necessary legal and regulatory framework to safely capture and store CO2. We took that plan to our state legislature in 2009 and passed it into law, creating the necessary regulatory framework for carbon sequestration. As senator, I worked to secure the necessary EPA approval for North Dakota, as well. We are now one of two states in the nation with this authority. We not only have the necessary geology but all state and regulatory approvals to safely secure and store CO2.”
“Continental Resources has called North Dakota home over 25 years. As the state’s largest leaseholder and producer, no company knows the geology better than we do,” said Harold Hamm, Continental Resources Founder and Chairman. “I want to thank the tremendous leadership of Senator Hoeven who, as governor, had the foresight to lay the groundwork for a project like this. North Dakota’s regulatory environment is second to none as the state will continue to lead in finding innovative ways to help reduce carbon emissions around the world.”
Enhancing the 45Q Tax Credit
The 45Q tax credit provides an important new revenue stream for CCUS projects of up to $50 per ton for CO2 permanently stored, or up to $35 per ton for CO2 stored and used for enhanced oil recovery. After helping pass legislation to reform and expand the 45Q tax credit, Hoeven worked to advance its implementation. His efforts included:
- Working closely with the Trump administration to move the final 45Q regulations forward.
- Passing legislation providing a two-year extension on the construction deadline for the 45Q tax credit.
Moving forward, Hoeven is prioritizing enhancements for the 45Q tax credit, which include providing a direct payment option, increasing the value of the tax incentive and making more accessible to CCUS projects of all sizes.
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