States Spur Carbon Capture With Tax Breaks, Regulatory Support

North Dakota lawmakers want to help a biorefinery in Underwood—population 803—as it deals with the carbon waste generated from turning 23 million of locally-grown corn every year into 70 million gallons of ethanol. And those lawmakers are far from alone in trying to do so.

The refinery, Blue Flint Ethanol LLC, is working to capture its emissions of carbon dioxide — a significant greenhouse gas — and transfer them to be stored safely underground. It’s asking the North Dakota legislature to exempt the transaction from the state’s sales tax, contending that without the sale, the gas would be ...