Louisiana Governor Halts New Carbon Capture Projects Amid Rural Community Concerns

LAFAYETTE, La. (KPEL News) — Louisiana is pumping the brakes on new carbon capture projects after years of mounting opposition from rural communities concerned about storing industrial waste underground near their farms and homes.

Gov. Jeff Landry issued a moratorium Wednesday on new applications for carbon capture injection wells, calling for greater public input and transparency as state regulators work through an unexpectedly large backlog of proposals. The move immediately drew pushback from industry groups who fear Louisiana could lose billions in potential economic development to competing states like Texas.

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What Louisiana Communities Need to Know

According to The Advocate, the executive order requires companies to make more effort seeking input from local governments and residents on pending projects. Carbon capture involves compressing carbon dioxide from industrial processes to a near-liquid state and pumping it deep underground for permanent storage.

State regulators say they've received far more applications than the 12 originally anticipated, with each project requiring an estimated 2,000 hours of review time. Louisiana gained primacy over carbon capture approvals from the EPA in early 2024, making the state responsible for final project decisions.

Six priority projects identified for their economic impact and geological safety will continue moving forward under existing review processes. Opposition groups argue the moratorium doesn't go far enough since it allows these projects to proceed.

Industry leaders warn the pause sends the wrong message at a critical moment, with one chemical industry executive noting members have already invested $60 billion in Louisiana projects dependent on carbon capture technology.