"Iowa Company's Pipeline Initiative in South Dakota - A Balanced Approach"

Project Details

Summit Carbon Solutions plans to capture carbon dioxide produced during ethanol production, liquefy it, and transport it via pipeline to North Dakota for sequestration. This process could earn the company billions in federal tax credits. The latest South Dakota route spans 700 miles with connections to 14 ethanol plants, including a proposed sustainable aviation fuel plant. Overall, the $9 billion pipeline would reach 2,500 miles with connections to 57 ethanol plants in five states. A Tuesday news release highlighted potential uses of the captured carbon, such as green methanol, water treatment, food processing, and dry ice production.

However, the sequestration area near North Dakota's oilfields has faced criticism. Opponents allege that some of the carbon dioxide could be used for enhanced oil recovery. Summit's website insists the pipeline will not be used for this purpose, but during a 2023 permit hearing in Iowa, the chief operations officer acknowledged it as a possibility. This has raised concerns among landowners and others worried about potential leaks of toxic carbon dioxide plumes.

Lawsuits Pending, Legislation Possible

The project is politically charged in South Dakota. Fourteen incumbent state legislators lost in the June primary election, and their support for a controversial pipeline law was a factor. Legislators and the governor approved the law last winter, aiming for a balanced approach. Opponents attacked a portion that would have required counties to prove their siting laws reasonable. They also gathered petition signatures and forced the law onto the November ballot, where 59% of voters rejected it.

Summit aims to start construction in 2026 and begin operations in 2027. State regulators will review the new application in the coming months, which could overlap with legislative action. Many new South Dakota legislators oppose the potential use of eminent domain. In August, the South Dakota Supreme Court ruled that Summit had not yet proven its status as a "common carrier," sending the lawsuits back to lower courts where the company will try to prove its case.