Summit Carbon Hits Pause on Pipeline Plan

By Scout Nelson

Summit Carbon Solutions has halted its multibillion-dollar carbon sequestration pipeline project, filing a motion with the South Dakota Public Utilities Commission to suspend its permit application indefinitely. This move follows the passage of House Bill 1052, a South Dakota law that limits the use of eminent domain for carbon pipeline construction. The law, signed by Governor Larry Rhoden on March 6, will take effect on July 1.

Eminent domain allows utility companies and governments to acquire private property for public use, but the new law prohibits this for carbon dioxide pipeline development. Summit Carbon, based in Ames, Iowa, cited this legislation as a challenge to its ability to conduct land surveys, a crucial step for determining the feasibility of the pipeline. The company stated that the new law would significantly delay necessary surveys, impacting the project’s timeline.

The company’s motion seeks to pause the permit process, requesting a review and adjustment of the schedule until it can proceed with the project. Summit Carbon expressed its continued commitment to advancing the project in supportive states and obtaining necessary land easements.

The pipeline, planned to stretch across five states, including South Dakota, would connect to multiple ethanol plants in Iowa, North Dakota, and South Dakota. It is part of a larger $8.9 billion project aimed at reducing carbon emissions from biofuel production. However, the project faces opposition from local landowners, particularly in South Dakota, where more than 80 eminent domain lawsuits were filed in an attempt to acquire land easements.

Opponents of the pipeline raise concerns about safety risks, referencing a 2020 pipeline accident in Mississippi where a carbon dioxide leak caused health issues for residents. Despite these challenges, Summit Carbon remains focused on navigating the regulatory hurdles and moving forward with its carbon capture plans.

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