Business

New Nebraska CO Pipeline to Share Profits with Rural Communities Along Route

Infrastructure investment sets precedent for carbon transport, ethanol expansion, and local economic support

AgroLatam USA

A Kansas-based pipeline operator is launching a $1.5 billion carbon dioxide pipeline across Nebraska, carrying emissions from ethanol production facilities to underground storage in Wyomiand sharing revenue with more than 230 rural communities along the way.

Tallgrass Energy's "Trailblazer" project, which repurposes a 392-mile natural gas line for CO transport, will begin shipping carbon from the first of 11 ethanol plants this fall. But more notably, the company is rolling out a first-of-its-kind community reinvestment program, committing over $7 million across 10 years to support early childhood centers, elder care, and food pantries in counties along the pipeline route.

The effort is being praised as a national model for balancing rural infrastructure development with community benefits. Tallgrass is making an initial $500,000 donation to the Trailblazer Community Investment Fund, managed by the Nebraska Community Foundation. The program was negotiated in cooperation with Bold Nebraska, a grassroots organization known for its opposition to past oil pipeline projects like Keystone XL.

In contrast to previous infrastructure rollouts, which have drawn protests and lawsuits, the Tallgrass initiative is winning cautious support-even from former critics. "Rural communities deserve to benefit from the projects that impact them," said Jane Kleeb, founder of Bold Nebraska. "Whether that's sharing in profits, investing in social services, or simply having a seat at the table."

Tallgrass executives say they are intentionally embedding community development into the business model. "We hope that these investments serve to provide a safety net to our neighbors throughout their lifetimes," said Kyle Quackenbush, segment president at Tallgrass. The company has already spent over $450,000 on disaster preparedness training and gear for rural fire departments along the pipeline corridor.

The fund's structure will allow small organizations-from local child care centers to food distribution hubs-to apply for grants, said Nebraska Community Foundation CEO Jeff Yost. "This isn't about PR," Yost added. "I see these guys doing it for the right reasons."

The Tallgrass carbon dioxide pipeline will connect 10 ethanol plants in Nebraska and one in Council Bluffs, Iowa, with a deep, underground storage area in eastern Wyoming. It uses about 392 miles of a former natural gas pipeline, the Trailblazer, that has been converted and about a like number of miles of connector pipelines to ethanol plants. (Courtesy of Tallgrass Energy)

Meanwhile, Tallgrass's project positions Nebraska ethanol for a major boost. The pipeline will connect 10 ethanol plants in Nebraska and one in Iowa to a permanent CO sequestration site in eastern Wyoming, allowing producers to dramatically reduce lifecycle emissions. That lower carbon intensity could make Nebraska ethanol more competitive in emerging markets like sustainable aviation fuel (SAF).

"This puts Nebraska ethanol into a league of its own," said Tallgrass spokesman Steven Davidson, referring to federal and state incentives that favor low-carbon fuels.

The Trailblazer project also offers a counterpoint to Summit Carbon Solutions' 2,500-mile pipeline, which has struggled with landowner resistance and regulatory hurdles. While Summit recently offered new community incentives, Kleeb said those were not negotiated with local groups, unlike the agreement with Tallgrass.

As carbon pipelines gain momentum under the Biden administration's decarbonization push, the Nebraska model may offer awork for how large-scale energy infrastructure can coexist with and support rural America-not just pass through it.

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