Legislation passed this week by the Iowa Senate would effectively ban carbon capture and sequestration (CCS) projects in the state meant to help farmers unlock new markets around the world for ultra-low carbon ethanol.

“CCS is the key to unlocking massive new demand for ethanol and corn around the world,” said Iowa Renewable Fuels Association (IRFA) Executive Director Monte Shaw. “For three years, IRFA has sought to work on a middle ground approach that enhanced landowner rights and protections but would allow CCS projects a path forward. While a majority of the Iowa Senate turned their back on Iowa agriculture tonight, IRFA thanks those who stood for common sense.”

“This is a hit to Iowa corn growers and ethanol producers,” said Iowa Corn Growers Association (ICGA) President Stu Swanson. “The decision to ban carbon capture and sequestration projects cuts off our ability to tap into markets for ultra-low carbon ethanol and puts Iowa corn growers at a disadvantage compared to states pursuing CCS projects. Iowa has long been known as the corn state, and this decision impacts our ability to stay competitive as other states and countries seize this new opportunity.”

The fate of the legislation is now in the hands of Gov. Kim Reynolds and ethanol interests are urging her to veto the bill.