By Scout Nelson
Some ethanol industry leaders find it ironic that Republican Governor Larry Rhoden promoted economic development at an ethanol plant while recently signing a law that hindered a major carbon pipeline project.
“The whole industry is very disappointed with how things went in South Dakota,” said Walt Wendland, president of the Ringneck Energy ethanol plant. The initiative aimed to capture carbon emissions from over 50 ethanol plants and store them underground in North Dakota, benefiting from federal tax incentives. While some landowners agreed to voluntary easements, others opposed the project due to concerns about property rights and potential risks.
Without eminent domain, securing the necessary land access remains uncertain. Wendland criticized the state for undermining the project after substantial investments had already been made. Summit recently requested a pause in South Dakota’s permitting process, while approvals in other states remain under review.
Ethanol advocates argue that the project represents a $1.86 billion investment in South Dakota and would create new market opportunities for lower-emission fuels. However, Rhoden defended his decision, stating that the new law does not halt the pipeline but encourages voluntary agreements and improved trust between landowners and developers.
“I encourage Summit and others to view it as an opportunity for a needed reset,” said Rhoden. “Voluntary easements for this proposed project will still be able to move forward. In fact, without the threat of eminent domain, the opportunity might finally be available for trust to be rebuilt and for more productive conversations to occur between Summit and South Dakota landowners.”
“If I were them and I wanted to be elected, it makes total sense,” said Eric Baukol is the CEO of Redfield Energy. “But it’s short-sighted. The shift toward carbon sequestration in agriculture is coming, and this will likely be a burden.” “It was easier just to shut it down and walk away than it was to fight the real fight,” said Board Chairman Jim Klebsch. “We can’t sustain current corn prices. Land prices will suffer, and local tax revenues along with them. Something will have to happen, and the pipeline project was one solution.”
Supporters of the eminent domain ban see it as a victory for property rights. Senator Tom Pischke emphasized that private companies should not have the power to take land against owners’ will. As debates continue, the ethanol industry faces uncertainty in securing the infrastructure needed for future growth.
Photo Credit: shutterstock-dickgage
Categories: South Dakota, Energy