Conestoga Energy Completes Drilling of Class VI CCUS Well

Source: Conestoga Energy

Conestoga Energy, the leading provider of low-carbon-intensity biofuel,  announced the successful completion of drilling operations for its first Class VI well designed for carbon capture, utilization and sequestration (CCUS). The well, located near the company’s Bonanza BioEnergy ethanol plant in Garden City, Kansas, will serve as the cornerstone of Conestoga’s initiative to permanently store carbon dioxide emissions generated during the ethanol production process.

Conestoga intends to submit its full Class VI permit application to the U.S. Environmental Protection Agency (EPA) this summer, marking the next critical step in the company’s fully integrated CCUS/ethanol production strategy that will significantly reduce the carbon intensity (CI) score and increase margins of its bioethanol.

The Class VI well is engineered to inject CO₂ more than a mile underground into secure geologic formations, in full compliance with EPA regulations to ensure safety and long-term containment. The project will enable Conestoga to capture and store 100% of the CO₂ emissions generated from its bioethanol production process. Once operational, the facility will sequester over 150,000 metric tons of CO₂ annually. Additionally, the project presents opportunities to store CO₂ from third-party sources, allowing Conestoga to earn additional carbon credits.

Located fourteen miles from Conestoga’s enhanced oil recovery (EOR) site, the Class II well enables 100% of the captured CO₂ to be utilized for EOR. This proven technique involves injecting CO₂ into mature oil fields to restore depleted reservoir pressure and increase production efficiency while simultaneously storing carbon underground — offering both economic returns and emissions reductions in line with Conestoga’s financial and carbon management goals.

Conestoga previously purchased the associated CCS equipment and CO₂ flood field, as well as all the leases and easements for the Class VI well, from a third party in 2024. The Company owns 100% of all carbon capture and related assets associated with the well.

The successful drilling operation further enhances Conestoga’s standing as an early leader in developing CCUS projects, building on the Company’s proven track record of capturing CO₂ for over a decade. Conestoga was the first in the industry to sequester CO₂ for EOR.

“This milestone further advances our mission of being the leading provider of low carbon intensity biofuel and reflects our deep commitment to innovation and sustainability in bioethanol production,” said Tom Willis, CEO of Conestoga Energy. “Carbon capture and sequestration is a proven solution that allows us to dramatically cut emissions while also expanding our presence in the growing, low carbon fuel markets, both domestically and internationally, unlocking additional financial value.”

With drilling complete, the Company is now focused on comprehensive data analysis and preparing the application materials for EPA’s rigorous review process. The permitting submission will include detailed geologic, seismic, and environmental data to demonstrate the site’s suitability for permanent carbon storage.