CO2 Pipeline to Begin Operations in Nebraska Soon
Nebraska Community Foundation Chosen to Manage Community Investment Fund
Tallgrass Energy recently announced that a $1.2 billion carbon dioxide (CO2) pipeline will soon go into operation. That pipeline will connect 10 ethanol plants in Nebraska and one in Council Bluffs, Iowa, with a deep, underground storage area in eastern Wyoming.
The company will also be providing funding for community investments, as per an agreement with the clean energy advocacy group, Bold Nebraska.
At one time, Bold Nebraska and founder Jane Kleeb, Chair of the Nebraska Democratic Party, had expressed grave concerns about the safety and environmental impact of CO2 pipelines. Kleeb and Bold Nebraska had previously been staunch opponents of the Keystone XL oil pipeline.
Bold Nebraska and Tallgrass Energy reached a “Community Benefits Agreement,” (CBA) that was signed in April of 2024.
As part of the agreement, Tallgrass has selected Nebraska Community Foundation (NCF) to manage the “Trailblazer Community Investment Fund,” (Fund) a community initiative stemming from Tallgrass’ Trailblazer Carbon Dioxide project – a project that supports the region’s biofuel producers by enabling the production of low-carbon, high-value biofuels and feedstocks.
The Fund will be seeded with an initial investment of $500,000 and supplemented annually through 2035 with an investment equal to $.10 per metric ton of carbon dioxide (CO2) that is transported and stored on the Trailblazer pipeline system. This initial investment is being provided six months ahead of schedule and the Fund is anticipated to distribute more than $7 million in the communities associated with the project’s right-of-way in Nebraska, Colorado, Wyoming and Iowa throughout the next decade.
NCF was selected to manage the Fund for both its adherence to the most rigorous standards in philanthropy as well as its intimate knowledge of the needs of rural communities and relationships in hometowns across the state of Nebraska. After significant research into rural communities’ most pressing needs, NCF recommended that the Fund support:
- quality early childhood development centers,
- food pantries, and
- long-term care facilities for elders.
“The issues the Fund targets are among the most challenging our rural hometowns are facing,” said Jeff Yost, president and CEO of Nebraska Community Foundation. “Most importantly, these dollars are being invested in organizations that already have a deep understanding of their communities and the people they serve.”
“As we’re starting commercial operations on the Trailblazer system, we’re thrilled to be able to celebrate this milestone by launching the Trailblazer Community Investment Fund,” said Kyle Quackenbush, Segment President at Tallgrass. “It’s important to us to strategically invest back into the communities who have supported the project’s development, and we appreciate the invaluable guidance we have received from Nebraska Community Foundation so far. We hope that these investments serve to provide a safety net to our neighbors throughout their lifetimes – from early childhood to eldercare – so that these communities can continue to grow and thrive.”
“Communities deserve to benefit from the projects that impact them – whether that’s sharing in profits, investing in social services, or simply having a seat at the project’s decision-making table,” said Kleeb. “This investment sets a standard for future energy infrastructure developers and for future regulatory reform that ensures stronger community and landowner benefits are enshrined in our state and federal laws.”
Grant-eligible government entities and nonprofit organizations must serve communities located along the Trailblazer pipeline system, which will transport CO2 from agricultural and industrial facilities in Iowa and Nebraska to be safely sequestered underground in Wyoming. Qualifying organizations have already been identified and will be invited by Nebraska Community Foundation to apply for funding, which will be distributed annually.
Nebraska counties to benefit from the Trailblazer Community Investment Fund include Adams, Banner, Buffalo, Butler, Cass, Clay, Dawson, Fillmore, Frontier, Gage, Gosper, Hall, Hamilton, Johnson, Kearney, Kimball, Lincoln, Merrick, Otoe, Perkins, Phelps, Platte, Polk, Saline, Sarpy and York. Colorado counties are Logan and Sedgwick. Iowa counties are Mills and Pottawattamie. Laramie County in Wyoming is also among the fund’s beneficiaries.
