Green Plains Inc. announced it has completed the integration of its three Nebraska facilities into a fully operational carbon capture and storage system, in partnership with Tallgrass. Biogenic carbon dioxide generated at the Central City, Wood River and York sites is now transported via the Trailblazer pipeline to Tallgrass’ southeastern Wyoming sequestration hub, where it is permanently injected.
Industrial-scale system in operation
The project marks a step forward in the industrial deployment of carbon capture and storage in the United States, particularly within the bioenergy sector. Tallgrass stated that this joint operation with Green Plains is a proof of concept for large-scale sequestration solutions. The Trailblazer pipeline enables uninterrupted cross-state CO2 transfer, and the Wyoming storage infrastructure is designed to handle significant volumes.
Green Plains also reported receiving an initial $14mn payment through the 45Z clean fuel production tax credit programme. This amount represents a portion of the transferred credits for the 2025 fiscal year, as per a previously announced agreement. Additional disbursements are expected in the first quarter of 2026.
Increasing value of low-carbon fuels
Since the start of the fiscal year, the company has recorded approximately $26.5mn in 45Z-related value prior to the activation of its carbon capture systems. The 45Z programme awards production tax credits to low-carbon fuel producers, with credit value calculated based on the emissions intensity per gallon. Green Plains expects the value of these credits to rise progressively as its plants improve their carbon performance.
The company views this development as a strategic lever for industrial portfolio valuation. With carbon capture technologies now active across all of its Nebraska facilities, Green Plains strengthens its position in the U.S. low-carbon fuels market and opens the way to recurring revenue generation based on federal tax incentives.