Some parishes seek local control on CO2 capture, but consider economic benefits

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(The Center Square) – Efforts aimed at advancing carbon capture and sequestration projects in south Louisiana that would position the state as a national leader in the emerging energy technology have received pushback in recent weeks, with leaders in several parishes saying they seek some measure of local control to help balance local environmental concerns with the potential economic benefits.

A business advocate says if the permitting process is slowed, local parishes and the state stand to lose a significant amount of jobs, tax revenue and other economic benefits.

Police juries in Jeff Davis and Allen Parishes approved resolutions this week requesting that Gov. Jeff Landry grant local governments the authority to approve or deny Class VI CO2 injection wells within their jurisdictions. Class VI wells, used to inject carbon dioxide deep underground for long-term storage, are subject to the most stringent permitting requirements and have monitoring systems designed to protect underground sources of drinking water.

The Louisiana Department of Conservation and Energy is currently reviewing 34 applications for Class Vi wells, which are located mostly in the southern and central parts of the state.

Environmental advocacy groups contend carbon leakages could potentially harm the Chicot Aquifer, the primary source of water in Jeff Davis and Allen parishes and other parishes in southeastern Louisiana.

The Louisiana CO2 Alliance, an advocacy group chaired by elected officials in Allen, Vernon, Jefferson Davis and Beauregard parishes, seeks a voice in crafting legislation that would address local concerns about carbon capture sequestration, as The Center Square reported in May.

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Representatives of Highland Pellets, an Arkansas-based wood pellet manufacturer, spoke at the September meeting about the company’s plan to build a plant in the parish that would directly employ 100 to 200 people. The investment depends on the use of carbon capture sequestration, the company said.

Will Green, president and CEO of the Louisiana Association of Business and Industry (LABI), said the state’s leaders must move quickly so that neighboring states, especially Texas, do not take the lead in establishing themselves as carbon sequestration hubs.

“LABI encourages all parish leaders to focus on the facts, not rhetoric from anti-business, out-of-state activist groups intent on preserving the status quo, and to weigh the long-term economic health of their communities,” Green said in a statement emailed to The Center Square.

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Carbon capture sequestration projects will typically generate $6 million to $12 million in local property taxes during the first five years of operation and $30 million over 20 years, according to a study done by the Center Emerging Energies cited by LABI.

The Allen Parish Police Jury voted unanimously Monday to ask Landry to refrain from issuing any Class VI carbon injection permits without prior approval from Allen Parish residents. A separate resolution passed unanimously that urges all companies to discuss their plans to capture or sequester carbon in parish with the police jury’s CO2 Committee.

A CO2 risk assessment commissioned by the police jury found a single carbon capture project would create over $81 million in local labor income over a 12-year period in Allen Parish while increasing gross domestic product (GDP) in the parish by $103 million.

The 151-page study done by Baton Rouge-based GEC found the fiscal impact for Allen Parish would include $3.5 million to $4.4 million in tax collections during 2026 through 2035. Additionally, lease payments for surface rights and pore space use have been agreed with landowners and could be substantial, according to GEC.

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In a study done by LSU’s Center for Energy Studies in 2023, it was estimated that a planned carbon capture and sequestration hub in Calcasieu Parish could abate climate damage, support jobs and workers, and protect the energy industry. The planned GCS hub in Calcasieu Parish would potentially abate climate damages by $11.3 billion over the lifetime of the project by sequestering a total of 300 million tons of CO2, according to the Center for Energy Studies.

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