Carbon capture and storage projects are making new gains toward supporting global decarbonization efforts, offering agriculture and infrastructure sectors a pathway to unlock new revenue streams while advancing climate goals. CCS technologies are often designed to prevent the carbon dioxide emissions of industrial sites from entering the atmosphere by compressing, transporting and injecting them in rock formations for permanent storage. Meaningful investment in these projects requires substantial capital, government support and deep-rooted community engagement. Trailblazer is a CCS project with all three levels of support.
The Trailblazer CO₂ pipeline demonstrates the convergence of agricultural production and infrastructure innovation. By repurposing legacy brownfield infrastructure, the project converts a former natural gas pipeline into a carbon dioxide transport corridor, moving captured emissions across Nebraska for permanent geological storage in Wyoming.
Features of the Trailblazer project include new CO₂ gathering networks to connect ethanol plants and advanced capture systems to intercept emissions at the source. Eleven ethanol plants across Nebraska and one in Iowa, many of them CoBank customers, are participating in the project. Ethanol remains a cornerstone of corn demand, and financial incentives, including carbon intensity scoring and low-carbon fuel standard credits, provide critical support to farmers navigating unstable markets. Ethanol plants implementing CCS and leveraging federal and state programs can generate up to $326 per metric ton of CO₂ captured, which translates to about $0.93 per gallon of ethanol under optimal conditions. Through the Trailblazer initiative, ethanol producers capitalize on multiple carbon-related incentives such as tax credits and premiums, enhancing product value and reinforcing the economic viability of Midwest agriculture.
Tallgrass, a U.S.-based infrastructure leader managing more than 10,000 miles of pipelines and other midstream assets, spearheaded the Trailblazer pipeline transformation. The company decommissioned the original pipeline and repurposed it to carry CO₂ captured from ethanol production. This reuse of decommissioned pipeline infrastructure minimizes environmental disruption and construction risk. Central to Trailblazer’s success is a pioneering Community Benefits Agreement, a comprehensive framework encompassing landowner protections, public safety investments and long-term community development. Endorsed by 11 statewide agricultural associations, the agreement includes multimillion-dollar commitments to first responder programs, a decade-long royalty program for landowners and sustained investment in local foundations tied to the volume of CO₂ permanently stored.
“Trailblazer reflects our vision of infrastructure as a platform, delivering energy solutions that not only move molecules but also expand markets for farm products, advance agricultural technology and create shared value across industries,” says Alison Nelson, segment president of CO₂ business development at Tallgrass. “This kind of cross-sector collaboration is essential to fueling long-term growth, resilience and sustainability.”
CoBank’s Power, Energy and Utilities division served as the coordinating lead arranger in the structuring of a landmark $1.1 billion project finance transaction for the Trailblazer project, where CoBank held a $225 million commitment, syndicated to other Farm Credit institutions. The deal's success hinged on seamless collaboration across CoBank’s two major sectors—agriculture and infrastructure. Colleagues from CoBank's Power, Energy and Utilities division partnered closely with the Regional Agribusiness division and their respective customers, while Project Finance provided expertise to structure the secured, non-recourse debt and evaluate the construction risks. This cross-sector effort demonstrates how CoBank’s integrated approach delivers innovative solutions that strengthen rural economies and advance long-term viability between the agriculture and energy sectors.
Trailblazer’s capacity of up to more than 10 million metric tons of CO₂ annually is roughly 10 times greater than the largest operational CCS project in the U.S., positioning it as a first mover in the space. The CO₂ delivered to Trailblazer will be permanently stored at an injection site in Wyoming. The first CO₂ shipments commenced in October 2025, marking a major operational milestone for the project. Trailblazer exemplifies how infrastructure and agriculture can work together to deliver measurable climate benefits and strengthen rural economies. By combining CCS technology with existing assets and community-focused agreements, it sets a clear example of how collaborative investment can support a lower-carbon future.