California-based carbon conversion company Twelve Benefit Corp. has filed a federal lawsuit in Washington over a CO2 fumes dispute that it says is endangering the health of workers and disrupting construction of its sustainable aviation fuel facility.

The complaint, filed in the U.S. District Court for the Eastern District of Washington, alleges that Two Rivers Terminal LLC, a neighboring chemical storage and processing company, has allowed toxic fumes to migrate onto Twelve Benefit's project site in Moses Lake. These emissions, including hydrogen sulfide and anhydrous ammonia, have allegedly made working conditions "unbearable" and have forced repeated site evacuations due to health risks.

“Our employees and contractors have consistently reported strong ammonia odors and burning sensations, making outdoor work impossible,” the lawsuit states. “At one point, hydrogen sulfide levels spiked above the federally recognized danger threshold.”

Twelve Benefit Corp., known for its innovative carbon capture technology that converts CO2 into fuels and materials, is seeking injunctive relief and compensation for significant costs incurred. These include costs for air monitoring, project delays, and emergency responses to noxious gas exposure.

Despite previous assurances from Two Rivers Terminal to mitigate the issue—including promises to inspect scrubbers, monitor emissions, and improve safety systems—the odor and exposure levels have reportedly continued.

The lawsuit includes claims of common law nuisance and negligence, and names Twelve Rainier LLC, the landowner of the project site, as a co-plaintiff.

The case is filed under: Twelve Benefit Corp. et al. v. Two Rivers Terminal LLC, Case No. 2:25-cv-00146.