Harvestone and Bank of America Announce Tax Equity Deal to Support Carbon Capture at Blue Flint Ethanol

Harvestone Low Carbon Partners, LP (HLCP), a US-based decarbonization platform and a portfolio company of Energy Capital Partners (ECP), announced that it has sealed a $205 million tax equity financing deal with Bank of America.  

This transaction pertains to HLCP’s subsidiary, Blue Flint Ethanol, and its associated companies near Underwood, North Dakota. These entities generate, capture, and sequester biogenic carbon dioxide (CO2). 

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Karen Fang, Global Head of Sustainable Finance at Bank of America, said, “We have built a strong track record of innovative financing transactions for decarbonization technologies including carbon capture and sequestration.” 

“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”, she added.  

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Blue Flint is the third biorefinery in the United States to capture its CO2 emissions and the first Carbon Capture and Storage (CCS) facility to begin carbon capture operations since the Inflation Reduction Act was enacted in August 2022.  

Operations started in October 2023, and the facility has already captured and sequestered over 125,000 metric tons of CO2. 

It is projected to capture more than 200,000 metric tons annually, equivalent to the emissions from nearly 42,000 vehicles. 

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As the owner of the entire value chain, HLCP arranged a tax equity financing deal that allows Bank of America to benefit from 45Q federal tax credits and, when available, purchase 45Z clean fuel tax credits generated by the biorefinery. 

These tax credits are linked to the CCS infrastructure at Blue Flint, which captures biogenic carbon dioxide emissions from the ethanol production process.  

The captured CO2 is then compressed into a liquid and injected into a deep underground geologic formation through a Class VI injection well.