Iowa Public Utility Regulators Approve Controversial CO2 Pipeline

On Tuesday, Iowa public utility regulators gave the green light to Summit Carbon Solutions’ $5.5 billion carbon dioxide pipeline project, designed to transport CO2 emissions from ethanol plants across the Midwest for underground storage in North Dakota. The 2,500-mile pipeline will carry liquefied CO2 emissions from plants in Iowa, Minnesota, Nebraska, North Dakota, and South Dakota.

Despite the approval, Summit still requires permits from other states, including North Dakota and South Dakota, before construction can commence. The Iowa Utilities Board granted Summit eminent domain rights over several parcels of land, technically allowing the company to use private lands for public benefit, though compensation to the landowners is mandated.

The initiative aims to help the ethanol industry leverage federal tax incentives and develop cleaner aviation fuels, potentially boosting the economy in corn-heavy states like Iowa. However, the project faces significant opposition from landowners and environmentalists concerned about land seizures and possible pipeline ruptures.

Summit must prove it has a $100 million insurance policy to cover potential damages before the Iowa permit is issued. Other states have either denied or are reconsidering related permits, indicating a complex road ahead for Summit.

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