Archer-Daniels-Midland Co (ADM) has signed a letter of intent with Wolf Carbon Solutions to build a pipeline that would capture, compress and transport carbon dioxide (CO2) produced at ADM’s ethanol facilities at Clinton and Cedar Rapids, Iowa.

The 350-mile, steel CO2 pipeline would be developed, owned and operated by Canada-based Wolf Carbon Solutions and will be capable of transporting 12 million tonnes of CO2 per year.

The transported CO2 will stored permanently underground at Chicago-based agricultural products company ADM’s fully permitted and already-operational sequestration site in Decatur, Illinois. The companies said the pipeline will have significant spare capacity to serve other third-party customers looking to decarbonise across the Midwest and Ohio River Valley.

Chris Cuddy, President, Carbohydrate Solutions for ADM, said, “This is an exciting opportunity for ADM to connect some of our largest processing facilities with our carbon capture capabilities, advancing our work to significantly reduce our CO2 emissions while delivering sustainable solutions for our customers. These efforts are core to our purpose, our culture and our growth, and we look forward to working with Wolf Carbon Solutions to finalise this agreement and further decarbonise our operations and our industry.”

Wolf Carbon Solutions is an affiliate of Wolf Midstream, a $4 billion multi-faceted energy infrastructure organisation based in Calgary, Alberta, which focuses on the development of world-scale CO2 infrastructure.

David Schmunk, President of Wolf Carbon Solutions, said, “This partnership is an excellent example of industries working together to decarbonise and deliver upon their ESG strategies and commitments. Our organisations offer a great combination of complementary skills and experience – ADM with more than 10 years of experience owning and operating CO2 sequestration wells, and the Wolf Carbon Solutions team with expertise in owning and operating carbon capture facilities and pipeline transportation systems, including North America’s largest third-party CO2 pipeline in Alberta, Canada.”

The announcement comes after Summit Carbon Solutions and Navigator CO2 Ventures recently faced opposition from farmers and residents over their plans to build a 2,000-mile, $4.5 billion carbon pipeline in the Midwest.