CRC-IB Advises Harvestone Low Carbon Partners on Carbon Capture and Storage Tax Credit Financing
Harvestone Low Carbon Partners, LC (HLCP), an Energy Capital Partners portfolio company and leading U.S. decarbonization platform, has successfully closed a first-of-its-kind tax credit financing for its Blue Flint Carbon Capture and Storage (CCS) project which will capture, transport, and permanently store CO2 from the Blue Flint Ethanol facility.
Located near Underwood, North Dakota, Blue Flint is the first carbon capture and storage entity to begin carbon capture operations after the Inflation Reduction Act was signed into law in August 2022 and only the third biorefinery in the U.S. to capture its CO2 emissions.
CRC-IB is pleased to have acted as exclusive financial advisor to HLCP on the transaction.
Michael Yurkerwich, CRC-IB Managing Director and deal lead, said, “We are thrilled to have collaborated with HLCP. Together, our ability to structure a successful, tailored outcome was made possible by strong sponsor backing, creativity, and dedication to being trailblazers in the carbon capture space.”
“CRC-IB expects demand for CCS-related tax capital to increase exponentially over the next decade, and this transaction represents a meaningful precedent toward advancing the carbon capture sector. This is just the beginning,” added Nick Knapp, CRC-IB Partner & Senior Managing Director.
Operations began in October 2023, with over 125,000 metric tons of CO2 already captured and sequestered. The facility is expected to capture over 200,000 metric tons of CO2 annually.
For more information on this transaction, please contact Michael Yurkerwich.
For the full press release, please click here.
About HLCP
Harvestone Low Carbon Partners, LP (HLCP) is a low-carbon biofuels producer operating at the intersection of traditional ethanol manufacturing and energy transition. HLCP operates three corn-based, dry-mill ethanol facilities, producing nearly 220 million gallons of ethanol per year. The Blue Flint and Dakota Spirit AgEnergy facilities are in North Dakota and the Iroquois Bio-Energy Company facility is in Indiana. All three ethanol plants are uniquely situated atop geology that enables HLCP to pursue fully integrated carbon capture and sequestration activities. HLCP’s strategy is to achieve Vision Carbon Zero: A multi-phased initiative aimed at making our facilities net carbon zero.
CCS is the process of capturing CO2 from a large stationary source such as an industrial facility, compressing the CO2 into a supercritical liquid state and injecting it underground via a Class VI injection well for permanent geologic storage. North Dakota was the first state to be granted primacy from U.S. Environmental Protection Agency (EPA) and the North Dakota Industrial Commission granted Blue Flint a Class VI injection well permit in May 2023. Blue Flint became the first US ethanol facility, following the passage of the federal Inflation Reduction Act in August 2022, to begin actively capturing and sequestering CO2 in a Class VI well.
For more information about Harvestone and its carbon capture and storage projects, please visit harvestonelcp.com.
