Carbon capture and storage (CCS) is gaining momentum as an important solution for reducing global carbon emissions. With significant projects like Gevo’s $1.46 billion Net-Zero 1 plant in South Dakota and a surge in CCS developments worldwide, the industry is expanding rapidly.
Gevo’s Groundbreaking SAF Plant
Gevo Inc., a Colorado-based alternative fuels company, has been offered a $1.46 billion loan by the U.S. Department of Energy (DOE) to build a “clean” fuels plant in eastern South Dakota that captures carbon emissions.
The facility, named Net-Zero 1, aims to produce sustainable aviation fuel (SAF), renewable diesel, and renewable naphtha using corn feedstock in Lake Preston. The plant aims to produce SAF while incorporating carbon-negative production processes to offset tailpipe emissions.
SAF refers to a broad category of biofuels and synthetic fuels intended to replace conventional jet fuel. These fuels still produce tailpipe emissions, but they are counterbalanced by a carbon-negative production process.
Gevo has taken a significant step towards expanding its carbon capture and storage capabilities by acquiring Red Trail Energy LLC’s ethanol plant and associated carbon capture and storage (CCS) assets in North Dakota last month. Valued at $210 million, this acquisition supports Gevo’s ambitious plans to establish Net Zero-1.
The Richardton, North Dakota facility, brings critical assets to Gevo’s strategy, especially its permitted CO2 storage infrastructure. This site is capable of storing up to 1 million metric tons of CO2 annually, though Red Trail has only used less than 20% of this capacity so far.
Net-Zero 1 would be the first SAF facility of its kind in the U.S., as noted by the DOE. The conditional loan was one of two announced on the same day; the other, worth $1.44 billion, was offered to Montana Renewables for expanding a renewable fuels plant in Great Falls.
Gevo expects to close the deal in 2025, with third-party project equity making up most of the project’s funding.
The company has partnered with Summit Carbon Solutions, which is developing a pipeline to transport the captured CO2 to a storage site in North Dakota, to manage its carbon emissions.
With capitalized interest during construction, the loan guarantee could provide Gevo with a borrowing capacity of $1.63 billion. The said financing is subject to specific conditions and an environmental review by the DOE.
Global Growth and Trends in Carbon Capture Projects
Globally, the CCS landscape is seeing a significant expansion, according to the Global CCS Institute report. The think tank’s 2024 annual status update highlights a notable increase in projects worldwide, with 291 CCS projects in advanced development or under construction as of mid-2024.

This figure represents a substantial growth from 147 projects in mid-2023. It shows the rising momentum of CCS technology as governments across the globe implement policies to combat climate change. There are now 50 operational CCS projects worldwide, but the majority remain in the design and permitting stages.
The total CO2 capture capacity of these projects has also increased, growing from 177 million metric tons annually in 2023 to 231 million metric tons by mid-2024. However, this growth comes despite setbacks, including several high-profile cancellations.
For instance, Navigator CO2 Ventures recently scrapped plans for a 1,300-mile CO2 pipeline in the U.S. Midwest. The reason for this is the challenges faced in securing state permits.
Still, government incentives, such as federal tax credits for CCS, have been instrumental in driving new projects in the US. Currently, 13 CCS projects are under construction, primarily associated with hydrogen, ammonia, and ethanol production facilities, which are often easier to retrofit with CCS technology.
Moreover, a growing number of direct air capture (DAC) projects are in development, catering to the increasing demand for carbon credits. These credits are seen as more easily verifiable than those from traditional carbon capture methods.
Government subsidies and supportive regulations have played a crucial role in boosting CCS deployment.
The Global CCS Institute’s report emphasizes the need for continued public funding. Without a price on CO2 or mandatory capture regulations, many CCS projects may struggle to remain financially viable. The case of Alcoa Corporation is an example of this.
A Push for CO2 Compensation
Alcoa Corporation is pursuing $80 million in CO2 compensation from the Spanish government, seeking reimbursement for carbon-related costs incurred between 2018 and 2021 at its San Ciprian aluminum and alumina production complex.
The compensation is critical for Alcoa as it faces increasing competitive pressure in the European market. Its neighboring countries like France offer significant carbon credits and subsidies to support smelters. These subsidies make French operations more viable compared to those in Spain.
CEO William Oplinger echoed the need for equal support to ensure the competitiveness of Alcoa’s operations in Spain.
The Pittsburgh-based company’s challenges in Spain extend beyond the lack of CO2 compensation. It is also working on a strategic cooperation agreement with Ignis Equity Holdings to secure the future of the San Ciprian complex. Under this agreement, Ignis will invest €25 million for a 25% stake in the facility, while Alcoa commits €75 million to ongoing operations.
Additionally, Alcoa seeks access to around $85 million in restricted cash controlled by unions at the site to help cover operating expenses.
These ongoing developments in carbon capture across companies and countries underscore both the opportunities and challenges facing the sector. As more projects move from planning to execution, the potential of CCS to play a critical role in achieving climate targets becomes increasingly clear.
- READ MORE: The “Northern Lights” Shines: Shell, Equinor, and TotalEnergies JV Powers the Norway CCS Project
The post A $1.46 Billion Boost for First-of-Its-Kind Carbon Capture and Clean Fuels appeared first on Carbon Credits.
Carbon Footprint
The Strategic Case for Nature-Based Carbon Investments
Nature-based carbon investments deserve consideration when they address a specific business dependency and produce outcomes you can measure. Imagine Moonbucks, a global coffee roaster planning next season’s espresso blend. It is considering natural Grade 4 coffee from Jimma, in southwestern Oromia, Ethiopia. Its sourcing decisions affect the roasting schedule and the cash tied up in coffee purchases. Moonbucks needs to understand which measures could protect that supply, what they would cost and how it would judge the results.
1. Define the sourcing problem before choosing a project
Moonbucks needs a dependable component for its espresso blend. Its procurement team wants continuity of volume and an agreed cup profile. Replacing a shipment at short notice could require new sample approval and changes to the blend, and given the schedules for cultivation, processing, and freight delivery, is practically impossible. Moonbucks needs to get this right, and its initial concern is inconsistent deliveries. It commissions an assessment of the supplying farms and post-harvest chain. The questions cover land condition, harvest availability and whether drying or storage problems are affecting saleable lots.
This distinction changes the investment brief. A tree-planting proposal cannot be assumed to fix drying problems. Better storage cannot restore eroded land. The team must establish which problem exists before selecting the response.
CCC’s guide to finding nature-based solutions in your supply chain explains where to look. Here, the next task is to turn a broad concern into a testable proposal.
2. Develop nature-based carbon investments around the actual supply chain
The assessment would trace Moonbucks’ purchases back through the exporter and supplying producer groups. Which farms supply the contracted lots? Who controls land-management decisions? How long does the buyer expect to maintain the purchasing relationship?
Furthermore, Jimma natural Grade 4 cannot be treated as interchangeable with every Ethiopian coffee. Moonbucks would need to test any substitute against its own blend and quality requirements.
Suppose Moonbucks’ assessment identifies an opportunity to maintain shade trees and restore vegetation along exposed streambanks. The IPCC describes agroforestry as a way to store carbon in vegetation and soil, with potential benefits for erosion control and water quality.1 Moonbucks would need local advice on species, growing conditions and maintenance before deciding how these measures fit its sourcing plan.
The proposal now has a defined sourcing connection and a candidate intervention. The next steps are to test its effect on production, assess carbon eligibility and build the financial case.
3. Compare the proposal with other ways to protect supply
WBCSD’s Nature-based Solutions Blueprint recommends comparing nature-based options with other responses across their benefits and costs.2 For Moonbucks, that means evaluating the landscape proposal alongside drying improvements, storage controls and alternative sourcing arrangements.
The product’s natural-process designation matters. Moonbucks should examine the drying and dry-milling chain alongside land conditions. Its team would check storage practices, contamination risks and incoming-lot quality to see whether problems arise before or after the coffee leaves the farms.
The revised proposal might combine land stewardship with separate post-harvest controls. Each component needs its own purpose and budget. A sustainability label should not obscure which activity is expected to solve which problem.
The project develops as the evidence improves. Its scope should follow the diagnosis rather than preserve the first idea unchanged.
4. Establish what the carbon outcome could count toward
Moonbucks’ sustainability team now tests the proposed carbon case separately from the sourcing case. Is the objective a measurable change in Moonbucks’ value-chain emissions, verified credits for separate voluntary use, or distinct outcomes under carefully defined arrangements?
Scope 3 covers value-chain emissions. A purchasing relationship alone does not prove that a farm intervention can be included in Moonbucks’ inventory. The team needs an applicable accounting method, defensible boundaries and evidence supporting attribution.
SBTi’s FLAG Guidance (forest, land and agriculture), version 1.2, says purchased credits used as offsets cannot meet near-term FLAG or energy and industry targets. Eligible land-based removals are subject to accounting requirements.3 Moonbucks needs to test its proposal against those rules before including an outcome in its targets.
For Moonbucks’ Jimma proposal, maintaining existing trees and establishing new vegetation could involve different carbon questions. Specialists must examine the baseline and additionality, meaning what changes because the project proceeds. They must also assess measurement and the risk that stored carbon is lost. CCC’s MRV and additionality article introduces those tests.
Until that work is complete, Moonbucks should not budget an assumed Scope 3 reduction or credit-sale receipt. Direct emissions reductions remain the priority.
5. Build a financial case that survives weaker assumptions
Moonbucks’ finance team would now build a multi-year budget. UNEP’s State of Finance for Nature 2023 compares current finance with the investment needed to meet climate, biodiversity and land-restoration goals.4 The company would cost its proposed activities, farmer participation and ongoing monitoring. Verification, where required, is a separate expense. Maintenance and responsibility for replacing failed plantings must remain visible after the initial establishment budget ends.
Operational benefits need equally careful treatment. If fewer rejected lots reduce emergency purchasing, count that saving once. Do not add “supply resilience” as another financial benefit when it represents the same avoided cost.
Moonbucks should compare a base case with slower benefits, higher implementation costs and no carbon revenue. It should also distinguish production outcomes from quality and shipment outcomes. A single good harvest would not prove that the landscape intervention caused better delivery performance.
A project can remain worth funding even when its carbon case needs more work. That decision must rest on the operational evidence and the company’s objectives, without unsupported environmental claims.
6. Fund a pilot with a clear expansion decision
Moonbucks’ first approval would fund a bounded pilot, rather than commit the entire sourcing program. Before spending, Moonbucks would agree on participating farms, responsibilities and the evidence needed at review.
Its scorecard could track farmer participation, implementation costs and plant survival, alongside accepted coffee volumes and lot-quality results. Carbon measurements would follow the selected method. Farm-level traceability must connect the intervention to the actual sourcing relationship.
Suppose Moonbucks’ review later finds that storage changes explain most quality improvements, while the land measures need longer observation. Those findings would shape the next decision: expand the proven component, adjust the landscape work or pause further spending. They would not justify crediting all improvements to tree planting.
This gives nature-based carbon investments a practical place in a multi-year strategy. Funding increases as the evidence supports it, and the project can change direction before a larger commitment.
Discuss a sourcing opportunity with CCC
Carbon Credit Capital’s nature-based supply-chain investment service uses its Dual-Value Model to examine supply-chain economics alongside potential sustainability outcomes.
Schedule a consultation to discuss your sourcing exposure and the questions to resolve before allocating capital.
Sources
- Intergovernmental Panel on Climate Change (IPCC), Climate Change 2022: Mitigation of Climate Change, Chapter 7, Agriculture, Forestry and Other Land Uses, section 7.4.3.3 (Agroforestry).
- World Business Council for Sustainable Development (WBCSD), Nature-based Solutions Blueprint, 5 June 2024.
- Science Based Targets initiative (SBTi), Forest, Land and Agriculture Science-Based Target-Setting Guidance, version 1.2, March 2026, section 3.1.4, pp. 37–38.
- United Nations Environment Programme (UNEP), State of Finance for Nature 2023, 2023.
Carbon Footprint
How to buy plastic credits, and what to check before you do
A plastic credit funds the collection of plastic waste in places where no formal system exists to collect it. Each credit represents a measured, independently audited quantity of plastic taken out of the environment or returned to use, tracked on a public registry.
![]()
Carbon Footprint
EU carbon credit claims after 27 September 2026
EU carbon credit claims changed on 27 September 2026, the day the Directive (EU) 2024/825 began to apply across the European Union. The change is narrow. It changes how a company can talk about the credits it buys. A product can no longer be called neutral on the strength of compensation alone; however, every specific, evidenced statement about what a company measured, reduced, and funded stays fully available.
![]()
-
Climate Change1 year ago
Guest post: Why China is still building new coal – and when it might stop
-
Greenhouse Gases2 years ago嘉宾来稿:满足中国增长的用电需求 光伏加储能“比新建煤电更实惠”
-
Greenhouse Gases1 year ago
Guest post: Why China is still building new coal – and when it might stop
-
Climate Change2 years ago嘉宾来稿:满足中国增长的用电需求 光伏加储能“比新建煤电更实惠”
-
Renewable Energy1 year agoSending Progressive Philanthropist George Soros to Prison?
-
Greenhouse Gases1 year ago
嘉宾来稿:探究火山喷发如何影响气候预测
-
Climate Change2 years agoAnalysis: China’s CO2 falls 1% in Q2 2024 in first quarterly drop since Covid-19
-
Climate Change1 year ago嘉宾来稿:探究火山喷发如何影响气候预测

