On Oct. 19, the Iowa Carbon Sequestration Task Force met virtually for the third time in as many months to discuss preliminary proposals to meet the demands of an emerging climate solutions market. This market is expected to double from $1 trillion per year to $2 trillion by 2025. The task force, formed from an […]
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On Oct. 19, the Iowa Carbon Sequestration Task Force met virtually for the third time in as many months to discuss preliminary proposals to meet the demands of an emerging climate solutions market. This market is expected to double from $1 trillion per year to $2 trillion by 2025.
The task force, formed from an executive order by Gov. Kim Reynolds in June at the recommendation of a final report from the Governor’s Economic Recovery Advisory Board, meets to suggest how Iowa can move to a carbon-free economy. According to the executive order, a shift towards carbon sequestration should help Iowa farmers and renewable energy producers impacted by market price and profitability challenges.
Carbon sequestration is the process of capturing and storing atmospheric carbon dioxide, says the United States Geological Survey, a scientific agency that studies natural resources and hazards. The carbon dioxide is captured from a smokestack and transported by the pipeline before being stored underground.
Implementing carbon sequestration, at least in theory, would facilitate new revenue streams for agriculture and energy companies alike and reduce the level of carbon dioxide in the atmosphere. In doing so, the method will minimize the human “carbon footprint” by stabilizing carbon in solid or dissolved forms so that it doesn’t allow the atmosphere to warm, according to the CLEAR Center at the University of California, Davis.
Carbon credits are often what quantify carbon sequestration. According to the Wisconsin State Farmer, a carbon credit is a tradeable certificate representing the right to emit carbon dioxide. One common way to implement these transactions is via a market, where companies voluntarily purchase carbon credits to offset their emissions.
“The impetus for this task force is to try to figure out if there are either some strategic investments or policy changes that the state can pursue to help give Iowa a competitive advantage,” said Mike Naig, Iowa Secretary of Agriculture. “A lot of it is figuring out how we can continue to build upon our strengths. For example, we’re a leader in renewable energy, so how can we use that to our advantage?”
Named by Ms. Reynolds, the task force consists of members and working groups from the Iowa state government (including Mr. Naig), Iowa State University (ISU) faculty, and leading business representatives from the agriculture and energy sectors. All discussions and proposals, to this point, are in the preliminary stage and serve mainly as a launching pad for more advanced decisions down the line.
Among those proposals is constructing an Iowa Carbon Center, with an initial estimated price tag of $11 million set as a placeholder. Modeled after the Nutrient Research Center at ISU and the North Carolina Biotechnology Center, the center could serve many purposes, as a research hub and an appropriate place to facilitate collaborations between the public and private sector, said Bill Belden of Antares Group and Belden Family Farms during the task force meeting.
The center, he says, has the opportunity to tell Iowa’s carbon and environmental stories and help inform businesses on the carbon sequestration potential for their bottom line.
“When you ask a researcher ‘What does my carbon footprint look like?’ or ‘Does my soil have the capability of sequestering?’ the answer is often ‘It depends.’” said Mr. Belden. He added that any proposal surrounding the Iowa Carbon Center should be focused on growing Iowa’s economy to make the center worth the taxpayers’ and businesses’ time.
Increasing the use of high-blend biofuels produced in Iowa is another suggestion being discussed. This renewable fuels policy supports any existing or future legislation that sets biofuels and ethanol standards to further low carbon usage of renewable fuels beyond existing markets.
“If the Carbon Center will help us learn and research, and if the renewable fuels policy can help make it a reality, then a carbon ignition fund intends to create these opportunities faster,” said Matt Sutton-Vermuleun, principal at The Context Network, during his presentation. “What this is intended to do is provide incentives so that people can take risks and lead, with the incentives being guided strategically by the insights coming from the Carbon Center and our nutrient reduction strategy.”
Another proposed policy involves fertilizer management, where the State of Iowa would invest in ISU research to update static maximum return to nitrogen (MRTN) recommendations to a new dynamic modeling system that considers the variability in the environment and weather. More accurate nitrogen recommendations will support higher yields, reduce greenhouse gas emissions and address water quality concerns, among other benefits.
A flexible rate proposal that encourages agricultural facilities, ethanol plants, biofuel plants, and manufacturers to reach net-zero carbon emissions was also mentioned as an opportunity for businesses to achieve a competitive advantage if such a policy was enacted.
Although several big picture plans are being floated now — and more concrete decisions are expected as early as Dec. 6, the day of the final task force meeting — there’s a lot of work left to be done.
Any approved plan will need to meet the needs of private sector companies, work within supply chains, comply with federal government regulations and future farm bills while hearing out Congress, and be dynamic enough to change after learning new information, said Mr. Naig.
“Let’s be candid; there’s a lot of moving parts,” he said. “This task force alone is not going to solve every issue, but what it can do is set the state on a pathway to some of the big picture things that we want to achieve, such as becoming a leading state for creating carbon value through agricultural stewardship and energy generation.”
He added, “Since this is such a fast-developing space, we’re moving in a way that I don’t hear often from other states. I think we’re getting some credit as a state that’s really pushing ahead and charting a course. I think that sends a great signal across the country.”
