Conestoga Energy (“Conestoga” or the “Company”), the leading provider of low carbon intensity biofuel, today announced the submission of its full Class VI permit application to the U.S. Environmental Protection Agency (EPA) for its carbon capture, utilization and sequestration (CCUS) project. This submission marks the first Class VI permit application filed in EPA Region 7 in conjunction with a successfully completed well site. The strategic location in EPA Region 7 which encompasses Iowa, Kansas, Missouri, and Nebraska, positions Conestoga as a regional pioneer in permanent carbon storage technology.
The application follows the successful completion of drilling operations of its full Class VI Carbon Capture & Sequestration well announced in May and leverages extensive geologic, seismic, and environmental data collected from the Company's well site near its Bonanza BioEnergy facility in Garden City, Kansas.
"Submitting our Class VI permit application demonstrates Conestoga's regional leadership in commercial carbon capture technology," said Tom Willis, CEO of Conestoga Energy. "This represents the natural evolution of our decade-plus experience in CO2 management and positions us to capitalize on the growing demand for permanent carbon storage solutions across the agricultural corridor."
The well is designed to sequester up to 800,000 metric tons of CO2 annually, including 150,000 metric tons from Conestoga's ethanol production, and up to 650,000 metric tons from third party emitters. Once permitted, the facility will create significant opportunities to serve third-party CO2 emitters throughout the region. This commercial CCUS model allows the Company to generate additional revenue streams through carbon credit sales and storage services for external CO2 sources.
The strategic location, five miles from Conestoga's existing enhanced oil recovery (EOR) operations, provides dual-purpose flexibility. Captured CO2 can be directed either to permanent sequestration or EOR applications depending on market conditions and commercial opportunities, thereby enhancing the company’s potential economic returns.
Regional Pioneer Status
Conestoga's submission in EPA Region 7 has the potential to accelerate the broader adoption of carbon sequestration technology across the Midwest's extensive ethanol production network. By combining proven EOR experience with permanent storage capabilities the Company offers a scalable and replicable model for the industry.
The application includes comprehensive subsurface analysis demonstrating the site's exceptional geology for safe, long-term carbon storage more than a mile underground. The EPA's rigorous review process will include public consultation opportunities, demonstrating the Company's commitment to transparency and community engagement.
Commercial and Environmental Impact
In addition to reducing emissions, the project materially improves the carbon intensity profile of Conestoga's bioethanol, unlocking access to premium low-carbon fuel markets both in the US and abroad.
Importantly, Conestoga retains 100% ownership of all carbon capture infrastructure and storage rights, ensuring full operational control and maximum commercial flexibility as the CCUS market continues to evolve.