Company Advances Carbon Sequestration in Southern Tier
TL/DR –
The Biden administration is investing in a new technology known as “carbon capture, sequestration, and utilization” through the Inflation Reduction Act. Southern Tier Solutions aims to lease over 1 million acres of land to create test wells for a process called “closed loop drilling,” which pumps carbon dioxide underground, forcing out methane to power new gas-fired power plants. The company’s president, Bryce Phillips, is currently marketing the project as a renewable energy initiative while investigating journalist Peter Mantius suggests the technology it uses has not been fully tested.
Biden Administration Invests in Carbon Capture Technology
The Biden administration’s Inflation Reduction Act is financing a novel technological process termed “carbon capture, sequestration, and utilization” that theoretically entombs carbon dioxide.
Southern Tier Solutions Leasing Land for Test Wells
A firm named “Southern Tier CO2 to Clean Energy Solutions LLC” or Southern Tier Solutions, is seeking to lease over 100,000 acres from landowners in Broome, Chemung, and Tioga counties for establishing test wells.
The Closed Loop Drilling Process
Utilizing a method known as “closed loop drilling,” Southern Tier Solutions would inject carbon dioxide underground into shale to extract methane, which would then power 10 new gas-fired power plants.
Leasing Land for Carbon Storage
Southern Tier Solutions plans to lease 1 million acres, offering a flat $10 signing bonus to landowners with 30 acres or more. The potential for earnings would be from methane extraction and carbon storage.
The Goal of Southern Tier Solutions
According to Southern Tier Solutions President Bryce Phillips, the goal is to produce natural gas for power generation in a manner that doesn’t produce carbon dioxide, categorizing it as a renewable energy project.
Information on Leases
Phillips declined to disclose the number of leases sold, claiming that the information is proprietary. More from Phillips on WCNY’s Capitol Pressroom podcast.
Concerns about the Technology
Peter Mantius, an investigative journalist and the editor of Waterfront, reports that the technology Southern Tier Solutions plans to use hasn’t been fully tested yet. There are also questions about the project’s feasibility considering New York state’s compulsory integration law and potential legal challenges.
Conversations with Regulators
While Phillips has had preliminary discussions with the New York State Department of Environmental Conservation, he has regularly interacted with the federal regulator. Southern Tier Solutions would qualify for federal 45Q tax credits under the Inflation Reduction Act.
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