CALGARY, Alberta (Sept. 30, 2025) Enverus Intelligence® Research (EIR), a subsidiary of Enverus, the most trusted energy-dedicated SaaS company that leverages generative AI across its solutions, is releasing a report focused on why carbon capture and storage (CCS) using ethanol feedstock is emerging as a high-impact decarbonization strategy for both the ethanol and carbon capture industries. In the report, EIR analyzes the remaining unpartnered facilities and which ones are best positioned to take advantage of the opportunity.
“Ethanol has emerged as a leading strategy for carbon capture commercialization, with both CCS and ethanol operators pursuing stacking federal and state carbon credits including 45Q, 45Z, LCFS and carbon dioxide removal (CDR) for maximum monetization. This is leading to large-scale CCS infrastructure projects like Summit Carbon Solutions’ CO₂ pipeline networkin the Midwest,” said senior analyst Alex Nevokshonoff.
“Our latest report shows that adding carbon capture to an ethanol facility can increase credit revenues to as much as $326 per tonne of CO₂ captured—or $0.93 per gallon—by stacking 45Z, 45Q, LCFS and CDR credits. Even under conservative credit assumptions, implementing CCS with pipeline transport is economically viable for most facilities. While higher-cost rail transport narrows margins, many facilities remain profitable at the upper end of credit revenues, though less so at the lower end,” Nevokshonoff said.
“Currently, about 50% of U.S. ethanol capacity is aligned with CCS projects, leaving the other half still on the table. Operators such as Poet Biorefining and ADM highlight the greatest remaining carbon capture opportunities for investors, ethanol producers and CCS developers,” he added.
Key Takeaways:
- About half of U.S. ethanol emissions are already associated with CCS via pipeline projects or on-site sequestration efforts. EIR estimates that leaves almost 25 mtpa still available for emissions reductions.
- Incentives like tax credits and compliance markets generate significant returns when carbon capture is implemented. EIR estimates subsidized carbon capture projects can increase per-gallon credit revenue for ethanol facility’sby as much as $0.93/gallon, or $326/tonne of CO2.
- Almost 90% of ethanol plants break even with CCS utilizing pipelines to transport CO2. However, for small volumes and long hauls, faster-to-implement rail transport wins out. Below 0.15 mtpa and beyond 200 miles, CO₂ rail is more economic but remains unfeasible without substantial credit premiums.
- EIR finds ADM and Poet Biorefining lead in untapped CCS potential across U.S. ethanol facilities: ADM holds about 1.4 mtpa of sub-$50/tonne emissions and Poet leads in total untapped potential with 2.5 mtpa across 21 facilities.
EIR’s analysis pulls from a variety of products including Enverus FOUNDATIONS® – Carbon Innovation and Enverus FOUNDATIONS® – Power and Renewables.
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About Enverus Intelligence® Research
Enverus Intelligence ® | Research, Inc. (EIR) is a subsidiary of Enverus that publishes energy-sector research focused on the oil, natural gas, power and renewable industries. EIR publishes reports including asset and company valuations, resource assessments, technical evaluations and macro-economic forecasts; and helps make intelligent connections for energy industry participants, service companies and capital providers worldwide. Enverus is the most trusted, energy-dedicated SaaS company, with a platform built to create value from generative AI, offering real-time access to analytics, insights and benchmark cost and revenue data sourced from our partnerships to 95% of U.S. energy producers, and more than 40,000 suppliers. Learn more at Enverus.com.
