Indiana's Carbon Capture Era Begins with First EPA Permit

UNION CITY, IN – April 09, 2026 – Indiana is set to become a new frontier for industrial decarbonization after the U.S. Environmental Protection Agency (EPA) granted the state's first-ever Class VI permit for a carbon capture and sequestration (CCS) project. The landmark approval was awarded to the One Carbon Partnership, a joint venture between Denver-based developer Vault 44.01 and local producer Cardinal Ethanol.

The project, located near Union City in Randolph County, represents a more than $60 million capital investment aimed at capturing carbon dioxide emissions directly from Cardinal Ethanol's facility and permanently storing them deep underground. Once operational, the facility is designed to sequester up to 450,000 metric tons of CO2 annually, with a projected capacity of 13.5 million metric tons over its 30-year lifespan. This move positions Vault among a small but growing number of companies to navigate the EPA's rigorous approval process, signaling a major step forward for the CCS industry in the American Midwest.

A Regulatory First for the Hoosier State

Securing an EPA Class VI permit is a significant undertaking, marking the culmination of a multi-year technical and regulatory marathon. The permit is specifically designed for the geologic sequestration of CO2, with its primary mandate being the protection of underground sources of drinking water. Applicants must provide exhaustive geological data, detailed well construction plans, and sophisticated computational models to prove that the injected carbon will remain safely contained in deep rock formations.

The process typically involves an extensive public engagement period and requires companies to demonstrate substantial financial assurance. This funding guarantees that resources are available for long-term monitoring, potential corrective actions, and the eventual plugging and closure of the well, which can involve a post-injection care period lasting up to 50 years. The EPA's approval of the One Carbon Partnership project followed what the agency described as a "thorough, science-based technical review."

This federal green light builds on a supportive legislative framework established by Indiana itself. In 2022, the state passed House Bill 1209, creating a legal structure for CO2 sequestration that addresses pore space ownership, liability, and permitting. By proactively creating this framework, state officials have signaled a clear intent to attract investment in carbon management technologies, viewing it as a pathway to both environmental stewardship and economic development.

Dollars, Jobs, and Low-Carbon Corn

The project's immediate impact is expected to be felt in Randolph County, with the creation of more than 30 local jobs during the construction phase and a significant infusion of capital into the regional economy. For Cardinal Ethanol, the venture is a strategic move toward sustainability and market competitiveness.

"Cardinal Ethanol remains committed to improving our world by continuously reducing our carbon footprint and maintaining the highest standards of operational excellence," said Rob Davis, Chairman of Cardinal's Board of Directors. "The EPA's approval underscores our project's soundness, its community support, and reinforces our commitment to value creation for our owners and neighbors."

The partnership aims to produce a lower-carbon ethanol, a product with increasing appeal in markets that incentivize sustainable fuels. This directly benefits the local agricultural community by creating a durable demand for corn from growers who can now participate in the burgeoning low-carbon fuel economy. By capturing the CO2 produced during the fermentation process, the facility helps decarbonize a key Indiana industry while bolstering its economic foundation.

"Together with Vault, we are taking an important step toward a zero-emission liquid fuel solution," Davis added, highlighting the project's dual environmental and economic ambitions.

The Promise and Peril of Carbon Sequestration

The One Carbon Partnership project enters a national conversation where CCS technology is seen as both a critical climate tool and a controversial lifeline for polluting industries. Proponents argue that CCS is indispensable for decarbonizing "hard-to-abate" sectors like cement, steel, and chemical manufacturing, where emissions are an inherent part of the production process. They see it as a necessary bridge to a net-zero future, capturing emissions that cannot otherwise be eliminated.

However, the technology is not without its critics. Some environmental organizations express concern that CCS could divert investment from renewable energy sources like wind and solar, effectively prolonging the lifespan of fossil fuel-dependent industries. Questions surrounding the long-term permanence of underground storage, the risk of leaks, and the energy required to run the capture process itself are central to the debate. These groups often advocate for prioritizing a direct transition to carbon-free energy, viewing CCS as an expensive and unproven detour.

The stringent nature of the EPA's Class VI permit, with its focus on geological stability, continuous monitoring, and long-term financial liability, is intended to address these safety and environmental concerns head-on. The success or failure of early projects like the one in Union City will be instrumental in shaping public and regulatory confidence in the technology's viability at scale.

Beyond Ethanol: A Broader Decarbonization Strategy

For Vault 44.01, the Indiana project is a cornerstone of a much larger North American strategy. The company, backed by a $300 million commitment from private equity firm Grey Rock Investment Partners, is advancing a portfolio of more than 10 CCS projects across five states.

"This is a defining moment for Vault and Cardinal Ethanol and a powerful validation of Vault's technical expertise, commitment to stakeholder engagement, and disciplined approach to project execution," said Scott Rennie, President and CEO of Vault. He emphasized that the company's core objective is to advance the CCS industry through partnerships with business, communities, and government.

While its initial focus has been on the ethanol sector, Vault is actively expanding its expertise into other heavy-emitting industries. The company has projects in development aimed at decarbonizing baseload power plants, hydrogen production facilities, and cement and fiber-based manufacturing. This diversification reflects a broader vision of CCS as a versatile solution for a wide range of industrial emissions, positioning Vault as one of the most active developers in the rapidly evolving carbon management landscape.

As construction prepares to get underway in Randolph County, the One Carbon Partnership project will serve as a crucial test case. Its progress will be closely watched by industry leaders, policymakers, and environmental advocates as a real-world measure of carbon capture's potential to deliver on its promise of a cleaner industrial future.