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Harvestone Low Carbon Partners Closes Tax Equity Financing with Bank of America
Slice of Energy Team
September 24, 2024
Key Highlights:
Harvestone Low Carbon Partners (HLCP) closes tax equity financing with Bank of America.
Blue Flint Ethanol, HLCP’s subsidiary, captures and sequesters over 125,000 metric tons of CO2.
Facility to capture 200,000 metric tons of CO2 annually, equal to CO2 emissions from 42,000 vehicles.
First Carbon Capture and Storage (CCS) facility to operate post-Inflation Reduction Act (2022).
Bank of America participates in federal 45Q and future 45Z tax credits.
Source: Direct
Notable Quotes:
“Blue Flint’s carbon capture and sequestration project has helped the facility dramatically reduce emissions, produce ethanol with a significantly lower carbon intensity score, and strengthen the ethanol and agricultural markets for North Dakota.”
“We want to thank our new partners at Bank of America for joining us to help lower CO2 emissions at our North Dakota facility and... supporting the development of one of the first biorefinery carbon capture projects in the United States.”
“We are engaging with all of our clients including partners like Harvestone and providing them a full suite of financial solutions tailored to meet their needs as they take steps to transition to a more sustainable future.”
Our Take:
This landmark tax equity financing demonstrates a pivotal moment for the decarbonization of the biofuel sector in the U.S. Harvestone Low Carbon Partners' integration of Carbon Capture and Storage (CCS) with bioethanol production marks a significant innovation in reducing greenhouse gas emissions. Blue Flint’s ability to capture and sequester large amounts of CO2 showcases how industry leaders are leveraging federal incentives, such as the 45Q and 45Z tax credits, to drive impactful environmental solutions. This collaboration with Bank of America further highlights the growing role of major financial institutions in supporting sustainability initiatives through innovative financing models, positioning HLCP as a key player in America’s energy transition.