Application for Renewable Energy Program to perform:

Seismic Survey to Advance Potential for CO2 storage in Eastern ND

Date: July 12, 2021Principle Investigator: Jeff ZuegerProject Manager: Adam Dunlop

Request: $324,640

Midwest AgEnergy

Midwest AgEnergy Biorefineries• Blue Flint- 2007• Underwood – GRE

Coal Creek Station• CHP Integration• 73MGY

• Dakota Spirit- 2015• Jamestown – GRE

Spiritwood Station• CHP Integration• 75MGY

Midwest AgEnergy

- Capital Investment in Assets = $300 Million - Annual Operating Expenses = $300 million

North Dakota Ethanol Industry

• 5 ND ethanol plants produce 520 million gallons of ethanol per year along with 6.6 million gal corn oil and 1.5 million tons distillers grains• 60% of ND Corn Crop is Purchased by Ethanol Plants• Contributes more than $625 million annually to state’s economy• ND ethanol plants employ 225+ workers directly in high-paying positions, and thousands more than across all sectors of the

economy

• Use approximately 180 million bushels of corn annually – more than 80% of the corn purchased is from North Dakota farmers

Midwest AgEnergy & Carbon Capture• Nature of steam supply has enabled low carbon fuel pathways into

multiple jurisdictions with specific carbon reduction goals• MAG has pathways or trades in LCFS markets since inception• Carbon Capture and Storage (CCS) largest CI reduction opportunity • CO2 sequestration opportunity near Blue Flint project steps to date:

• Feasibility level analysis of proximate wells• 2D Seismic Investigation and Source Testing• 3D Seismic Project• Stratigraphic Test Well and collection

of formation specific data• Capture, Compression & Dehydration design

Permanent CO2 Storage

• Each MAG facility produces ~200K tons CO2 as fermentation byproduct

• Geological Sequestration is the process of capturing, compressing, and permanently storing (CCS) CO2 deep underground

• Rigorous environmental review and Class VI Permit required

• In ND pore space for CCS belongs to surface rights owner

Project Objectives & Rationale• Collect and process 2D seismic image data to determine the structural

features of geology in Stutsman and Barnes County. • Analyze this data to evaluate large-scale structural trends, basement

faults, depositional fabric, and depth prediction of reservoirs for CO2 storage potential.

• Report conclusions for utilization by entities with aspirations to pursue projects associated with carbon storage.

• CCS value is achieved through 45Q tax benefit, LCFS and ESG goals

Project Background• Pre-feasibility Study – petrophysical analysis of exiting well data• Spiritwood near edge of viable storage • To be candidate for storage:

• Brackish formation fluids• Subsurface pressure to keep CO2 liquid• Deadwood appears > 2600’ • Survey to target 3000-3500’

• Sufficient formation thickness• Deadwood in area appears ~50-80’• Adequate Caprock • Porosity and Permeability

Acquisition Strategy• Geophysical Survey via

Vibroseis trucks

Survey Details Survey Name Dakota Spirit – Spiritwood 2D Survey Type Land 2D Survey Location around Jamestown, ND Acquisition Method Vibroseis source, nodal recording Shooting Direction / Layout Direction Via roadways Primary Target Depth (ft) 3000-3500 Source Parameters Type INOVA AHV-IV (or similar) Source Point (ft) 110 # Vibes per VP 2 # Sweeps per VP 2 Sweep Length (s) 24* Listen Time (s) 6* Sweep Type Non-Linear* Sweep Range (Hz) 1.5-120 Drive Level (%) 70 Tires/Tracks/Paddle Wheels Road Tires Receiver Parameters Receiver Type Autonomous Node Receiver Components 1 Receiver station spacing (ft) 27.5 Group 1 Active channels / VP 288 Active line length (ft) 7920 # Channels per crew 7500 Minimum sensor range (Hz) 10 Recording Parameters Recording Method Continuous (gap-less recording) required Record Length (s) 6 Sample Interval (ms) 2 Low-cut filter Out High cut filter 204Hz @ 350 dB per octave Recording media USB Deliverables Data Format SEGY

SchedulePM Adam Dunlop

Start 5/24/2021Today 7/12/2021

ID Task DescriptionStart Date

Planned End Date

Actual End Date

Work Days Planned

Work Days Elapsed

Work Days Remain

Work Days Overrun

1 RFP-Contracting 6/1/2021 7/12/2021 30 29 1 0

1.1 Survey Design & Tender 6/1/2021 6/15/2021 11 29 0 0

1.2 Proposal Review 6/16/2021 7/14/2021 21 18 3 0

1.3 Prequalification 7/7/2021 7/15/2021 7 3 4 0

1.4 Contracting 7/8/2021 7/20/2021 9 2 7 0

2 Seismic Survey 5/24/2021 9/13/2021 81 35 46 0

2.1 Design Survey 5/24/2021 5/31/2021 6 35 0 0

2.2 Planning 6/1/2021 7/16/2021 34 29 5 0

2.3 Mobilization 8/10/2021 8/17/2021 6 0 6 0

2.4 Pre-Mobilization Audit 8/17/2021 8/18/2021 2 0 2 0

2.5 Data Acquisition 8/17/2021 8/31/2021 11 0 11 0

2.6 Demobilization 8/31/2021 9/7/2021 6 0 6 0

3 Permitting 7/20/2021 8/2/2021 10 0 10 0

3.1 Field Survey of Line & Adjustments 7/20/2021 7/23/2021 4 0 4 0

3.2 Notifications 7/20/2021 7/20/2021 1 0 1 0

4 Data Processing 8/31/2021 9/24/2021 19 0 19 0

4.1 Recover Data from Geophones 9/1/2021 9/8/2021 6 0 6 0

4.2 Contractor Processing 9/9/2021 9/24/2021 12 0 12 0

4.3 Interpretation 9/24/2021 10/8/2021 11 0 11 0

5 Reporting 10/8/2021 10/22/2021 11 0 11 0

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BudgetProject Associated Expense Total Cost NDIC’s Share

Applicant’s Share (Cash)

Applicant’s Share (In-Kind)

Other Project Sponsor’s

ShareSeismic Study Design & Tech Support 67,880.00$ 67,880.00$ -$ Permit/Notifications 20,000.00$ 20,000.00$ Pre-Mobilization Audit 9,000.00$ 9,000.00$ Seismic Acquisition 467,000.00$ 324,640.00$ 142,360.00$ Data Processing 45,400.00$ 45,400.00$ -$ Data Interpretation 20,000.00$ 20,000.00$ -$ Management / Reporting 20,000.00$ 20,000.00$

Project Total 649,280.00$ 100%NDIC Total Request 324,640.00$ 50.0%Applicant Cash Total 324,640.00$ 50.0%Other Sponsor Total -$ 0.0%

Summary

• Project provides valuable data to MAG and State which does not exist today

• Results provide clarity on opportunity-- Project learnings are useful to current ND biorefineries with aspiration to sequester CO2 as well as any current CO2 emission sources and potential future CCS projects in east central ND

• North Dakota Carbon Neutral Goals by 2030 – CCS part of solution

• Questions ?