Iowa public utility regulators have given the green light to Summit Carbon Solutions’ ambitious $5.5 billion, 2,500-mile CO2 pipeline project, aiming to transport emissions from Midwest ethanol plants to underground storage in North Dakota, despite facing opposition and regulatory hurdles.
On June 25, 2024, Iowa public utility regulators approved a carbon dioxide pipeline proposed by Summit Carbon Solutions, despite setbacks and opposition. The project, a $5.5 billion, 2,500-mile endeavor, aims to transport liquefied CO2 emissions from over 50 ethanol plants in the Midwest to underground storage in North Dakota.
The pipeline’s supporters, including the Iowa Renewable Fuels Association, see it as crucial for securing federal tax incentives and expanding the market for clean-burning aviation fuel. However, numerous landowners and a coalition opposed to the project have raised concerns about land rights and safety risks from potential pipeline ruptures.
Summit still requires regulatory approvals from other states, including North Dakota, South Dakota, Minnesota, and Nebraska, before commencing construction. The Iowa Utilities Board’s approval is conditional on Summit securing a $100 million insurance policy and meeting various other requirements such as monthly construction reports and equipment grants for local emergency responders.
In South Dakota, opposition has led to efforts to overturn Senate Bill 201, a law regulating CO2 pipelines, through a ballot measure. The legislation, signed by Governor Kristi Noem, includes provisions for property tax relief for landowners and public disclosure of rupture impact modeling. However, it has been criticized for undermining local setback regulations.
South Dakota regulators had previously denied Summit’s application in September 2023. Summit plans to reapply in July. The project also faced setbacks in North Dakota, where officials initially denied a siting permit but later agreed to reconsider.
Governor Doug Burgum of North Dakota supports the project, emphasizing the state’s geological suitability for CO2 storage and aiming for carbon neutrality by 2030.
The permitting challenges come amidst broader scrutiny of carbon capture technologies, with multiple CO2 pipeline projects in the Midwest being canceled or delayed.
