Ethanol groups are expressing disappointment after a company announced plans to cancel its $3 billion, five-state carbon sequestration pipeline.

Navigator CO2 says regulatory issues and government processes in South Dakota and Iowa contributed to its decision to axe the project on Friday. In a news release, the company says the unpredictability of the process also contributed.

Monte Shaw with the Iowa Renewable Fuels Association says the announcement was not a surprise and hopes similar projects move forward.

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