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As a subscriber you can listen to articles at work, in the car, or while you work out. Subscribe NowA North Manchester-based bioprocessing company is suing the Wabash County Board of Commissioners, arguing that an ordinance passed by the board last summer regarding carbon sequestration projects is preempted by the state’s carbon capture and sequestration statute.
The lawsuit was filed on March 5 in the U.S. District Court for the Northern District of Indiana by POET Biorefining – North Manchester LLC.
As a biofuel and bioprocessing company, POET Biorefining performs carbon capture and sequestration, a process in which carbon dioxide emissions are captured and injected below the earth’s surface to be stored permanently. Carbon capture and sequestration — known as CCS — allows power plants to emit fewer greenhouse gases into the atmosphere.
In 2011, the state enacted a bill to establish the Comprehensive Hoosier Option to Incentivize Cleaner Energy program, which encourages the analysis and development of CCS projects. In 2019, the state passed another piece of legislation declaring CCS “a public use and service, in the public interest, and a benefit to the welfare and people of Indiana,” Ind. Code § 14-39-1-3. Finally, the state passed additional legislation in 2022, creating a statewide regulatory framework for CCS projects under the Indiana Department of Natural Resources.
For the past several years, POET Biorefining has been working on a CCS project in Wabash County that would capture carbon dioxide produced at the company’s facility in North Manchester and store it in pore space under the facility and under nearby land.
In June 2025, the Wabash County Board of Commissioners passed an ordinance banning local improvement location permits for “any structure related to any carbon sequestration project” for an indefinite time period, according to the lawsuit.
POET Biorefining argues that the ordinance unlawfully prohibits what the state deems to be in the public interest and usurps the power of the state department of natural resources.
The company is represented by Barnes & Thornburg LLP in Indianapolis. Their attorneys told The Indiana Lawyer they wouldn’t comment on the pending litigation, but offered a comment on behalf of POET Biorefining:
“POET remains committed to finding a sensible solution that allows CCS projects to proceed under the supervision of federal and state authorities — agencies with the expertise to ensure projects are built and operated safely,” POET spokesperson Erin Branick said. “At a time when farm families are facing negative profit margins, rising bankruptcies, and dwindling grain demand, we simply cannot afford to slam the door on CCS projects that drive value across our rural economy.”
The Indiana Lawyer reached out directly to the board of commissioners, a representative for whom said via email that they’re reviewing the claims and preparing to defend the ordinance but can’t comment further on the litigation.
POET Biorefining also alleges the ordinance violates the Fifth and Fourteenth Amendments of the U.S. Constitution because it “destroys the value of the CCS project that POET has spent years developing.”
The company argues the ordinance is also a violation of the state’s Home Rule Act, declaring that the state of Indiana has not “expressly granted” authority to Wabash County to regulate CCS projects.
POET is asking the court to enjoin Wabash County from enforcing the ordinance and award the company for its damages and all other legal relief.
The case is POET Biorefining North Manchester LLC v. Board of Commissioners of Wabash County Indiana, 3:26-cv-00291-SJF.
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