(Radio Iowa) – The manager of an ethanol plant near Council Bluffs says a bill that would set new restrictions on the proposed Summit Carbon Solutions pipeline in Iowa would also impact his company’s plan connect to a Nebraska pipeline. Mike Jerke is C-E-O of what’s known as SIRE — Southwest Iowa Renewable Energy.

“SIRE has engaged two different engineering companies to look at expansion of our facility,” he says. “All of that is predicated on the ability to sequester CO2 and the demand pull that would bring.” A nearly 400 mile long natural gas pipeline in Nebraska is being retooled and will start capturing carbon from ethanol plants this fall. Jerke says his ethanol facility plans to start sequestering carbon in mid-2026 and connect to the Tallgrass Trailblazer pipeline in Nebraska.

“We have 100% voluntary easements for our project,” Jerke says. “We have those secured.” Jerke says the bill requires a type of insurance that would violate the permit his company is seeking and the legislation would set a 25 year limit on operating a pipeline transporting liquid carbon dioxide. Jerke says that would be a death blow because his company already negotiated 45 million dollars worth of contracts to buy the equipment needed to sequester C-O-2.

“We’ve probably spent a little over half that because equipment purchases take time and construction will come here in the fall,” Jerke says. “Apparently this is going to be, if this is to stand or be signed into law, something that we would only be able to operate for 25 years…Just extremely problematic would probably be putting it lightly.”

Jerke made his comments during an online news conference hosted by the Iowa Renewable Fuels Association. The group is urging Governor Reynolds to veto the pipeline bill.