A Future For A Carbon Pipeline In South Dakota?
The CEO of the American Carbon Alliance says he’s optimistic a carbon pipeline project can still move forward following the signing of a new eminent domain law in South Dakota.
“I don’t think anyone has given up on the pipeline and no one has given up on South Dakota,” says Tom Buis.
The new law would ban the use of eminent domain for a carbon pipeline. Summit Carbon Solutions says the law changes rules in the middle of the game and presents real challenges for the project.
Buis says without eminent domain, the company must get approval from all landowners along the proposed route.
“It’s a setback, but this whole process has been like playing whack-a-mole. One hurdle pops up and you have to take care of it and move on.”
Carbon pipelines can help the U.S. ethanol industry capture, store and sequester carbon to reduce greenhouse gases and make the fuel attractive for Sustainable Aviation Fuel. But these projects haven’t been easy to advance. In 2023, the Navigator CO2 pipeline project was cancelled due to regulatory issues and government processes in South Dakota and Iowa.
The Summit Carbon Pipeline project currently spans five states including Iowa, Minnesota, Nebraska, North Dakota and South Dakota. There have been permits issued in many of those states.
Minnesota Governor Tim Walz says he thinks the carbon pipeline can still happen.
“We’ll continue to move to different inputs for Sustainable Aviation Fuel, but in the beginning, especially during a trade war, if it’s a good place for a market, we need to work on it.”
But South Dakota is a key state for the project and Governor Larry Rhoden recently told Brownfield “I think it’s incumbent for Summit Carbon to earn back some trust from South Dakota. I think a huge part of our problem is based on this lack of trust.”
Summit Carbon Solutions has previously told Brownfield they’ve been working to repair trust in South Dakota.
Buis says the company has changed from when the project started. “People aren’t giving them any of the benefit of the doubt with the changes made.”
And he says several options are possible for the project moving forward.
“If you look at a map, there are other ways things can be done, I’m sure, but we’ll see what happens. That’s Summit’s decision.”
Summit Carbon Solutions re-submitted a permit application for the project with the South Dakota Public Utilities Commission in November and the project is waiting on the state to issue its decision.