CarbonSAFE Phase II:
Integrated Midcontinent Stacked Carbon Storage Hub

Objective: Create a coalition of industry and regulatory agencies to assess the economic and environmental playing field for commercial carbon capture, utilization, and storage (CCUS) implementation in Kansas, as well as drafting legislation to reform CCUS regulations in Kansas.

Background: The growing urgency to combat climate change has increased pressure on energy and other industry sectors to reduce carbon emissions. Government tax credits, known as "45Q," were expanded in February 2018. This has re-invigorated interest in CCUS technology among various Kansas industry sectors. These industries include petroleum, ethanol, electrical power generation, pipeline infrastructure, and agriculture. Kansas is in a strategic location for these developments and could become a hub for carbon dioxide (CO₂) capture, transportation, CO₂ Enhanced Oil Recovery (EOR), and storage. The expanded 45Q tax credits could make CCUS economically attractive for investors and operators.

The International Energy Agency's (IEA) 2015 report, Storing CO2 Through Enhanced Oil Recovery, estimates a large potential for geologic storage. When an oil field is flooded with CO₂ to release additional oil, a significant portion of CO₂ remains stored in the geologic formation. It is estimated that 360 gigatonnes of CO₂ could be stored globally and the Kansas potential for storing CO₂ via EOR is up to 750 megatonnes. IEA estimates that oil recovered via EOR reduces carbon emissions by more than 30%.

Key Interest Groups: ethanol, coal power plants/utilities, refineries, cement producers, agriculture, oil and gas operators, regulators (KCC, KDHE, EPA), legislators, and others.

Potential Participants: Oxy, Westar, CHS, Sunflower, Agri Energy, Pratt Energy, Berexco, Murfin, Mull Drilling, McCoy, KGS, Battelle, KCC, KDHE, EPA, and others.

Timeline: Established September 2019, meetings held quarterly.

Meeting Locations: Topeka, Wichita, Lawrence, Others TBD.

Goals and Statement: The Kansas CCUS Task Force aims to define and address challenges for CCUS development in Kansas, to educate potential stakeholders, and propose changes in policy and regulations.

Potential problems: 45Q and LCFS credit eligibility, infrastructure creation, transportation, regulatory primacy for CO2 injection wells (EPA Class VI), pore-space ownership, long-term liabilities, local tax incentives, field preparation and operation.