By Scout Nelson
The South Dakota Public Utilities Commission has denied Summit Carbon Solutions’ request to proceed with its CO2 pipeline permit application, requiring the company to reapply. The decision adds another delay for the Iowa-based company’s multi-state project.
Summit filed its original application in November but later requested an indefinite extension after South Dakota passed legislation banning eminent domain for carbon dioxide pipelines. The company said it would instead work to secure more voluntary easement agreements with landowners.
Commissioners expressed concerns about the lack of a defined route and timeline. “At this point, we really don’t know the route. We don’t know the timeframes,” said commissioner Kristie Fiegen.
Commissioner Chris Nelson dissented, arguing the permit shouldn’t be denied from a legal standpoint. However, the final vote was 2-1 in favor of denial.
“While we are disappointed in today’s decision, we remain committed to South Dakota, as without it, the ethanol industry, farmers, and land values in the state will all suffer,” Summit stated.
The 2,500-mile pipeline aims to collect carbon dioxide from nearly 60 ethanol plants and store it underground in North Dakota. Supporters believe it could expand fuel markets, increase corn demand, and access federal tax credits for carbon capture and storage (CCS).
The Trump administration highlighted CCS on Earth Day as a key tool for balancing energy production and environmental protection.
Despite these goals, landowner resistance remains strong due to property rights concerns and negative interactions with the company.
South Dakota has now denied Summit’s permit application twice since 2022. While North Dakota and Minnesota have granted parts of the project, construction in Iowa cannot begin until South Dakota approves a permit.
Photo Credit:summit-carbon-solutions
Categories: South Dakota, Energy