By Valerie Volkovici and Leah Douglas
WASHINGTON (Reuters) – Archer Daniels Midland Agricultural Co. confirmed on Friday that the U.S. Environmental Protection Agency found the company violated federal safe drinking water rules and an underground injection permit by causing a leak at the first major U.S. underground carbon sequestration facility in Illinois.
The Illinois Industrial Carbon Capture and Storage (CCS) project aims to demonstrate the ability of carbon dioxide to be safely stored underground.
The Biden administration’s Inflation Reduction Act expanded tax credits for carbon capture and storage projects from $50 per ton to $85, boosting interest in these projects.
In an Aug. 14 letter to ADM, the EPA said a July inspection of the site found that carbon dioxide injected into the ground flowed into “unauthorized areas,” and that the company failed to follow its emergency response, remediation and/or well monitoring plan as per its permit.
Leaks from cracks in rock layers or from injection can contaminate soil and groundwater in the area surrounding the storage site.
ADM responded to the EPA’s notice on Aug. 22, saying it had detected some corrosion in one of its two deep monitoring wells and subsequently plugged it and reported it to the agency, according to a copy of the letter seen by Reuters.
“At no time was there any impact to surface or groundwater sources or any threat to public health,” Jackie Anderson, a water department spokesperson, said in a statement.
“We remain confident in the safety, security and effectiveness of carbon capture and storage as a technology to mitigate greenhouse gas emissions and its potential to bring new industries and economic opportunities to the entire state of Illinois.”
A carbon capture industry trade group said the incident showed that the carbon dioxide injection monitoring system was working.
“We look forward to learning more about the best practices identified by Waste Management and the EPA from this incident,” said Jesse Stolark, executive director of the Carbon Capture Alliance.
This confirms the concerns that local communities have about the safety of this practice, said Jim Walsh, director of food and water monitoring policy.