- $8.9B pipeline project faces new South Dakota restrictions
- Governor prohibits eminent domain for CO2 pipelines
- Summit Carbon Solutions criticizes mid-process regulatory changes
- Project aims to transport emissions from 30+ ethanol plants
- Landowner rights vs climate goals debate intensifies
South Dakota has thrown a regulatory wrench into one of North America's most ambitious carbon capture initiatives. Governor Larry Rhoden signed legislation barring the use of eminent domain for carbon dioxide pipelines, directly impacting Summit Carbon Solutions' proposed network spanning five states. The nearly $9 billion project, designed to move emissions from biofuel facilities to underground storage, now faces critical delays in a state that hosts 17 ethanol plants.
The controversial bill follows 2023's voter rejection of pipeline regulations and reflects growing concerns about private land rights. Over 75% of Summit's proposed South Dakota route crosses privately held properties, according to regulatory filings. This development comes as the ethanol industry seeks federal tax credits requiring carbon capture implementation by 2030 to maintain market competitiveness.
Midwest energy analysts highlight three critical implications: First, ethanol plants could lose $1.50 per gallon in potential tax incentives without carbon capture. Second, North Dakota's approval of underground storage creates a regional imbalance in infrastructure readiness. Third, corn producers face pressure to reduce cultivation intensity as climate concerns grow.
A regional case study in Iowa shows contrasting approaches, where Summit secured pipeline approvals covering 680 miles. However, South Dakota's stance may embolden opposition groups in neighboring states. The company reports investing $30 million in local engineering contracts but acknowledges route adjustments may be necessary.
Environmental scientists remain divided on the project's climate impact. While the pipeline could sequester 12 million tons of CO2 annually – equivalent to removing 2.6 million cars from roads – critics argue this represents less than 0.3% of U.S. greenhouse gas emissions. The debate underscores broader questions about scaling carbon capture versus transitioning to renewable energy sources.
As legal challenges mount, agricultural economists warn of potential ripple effects. Corn prices could drop 8-12% if ethanol demand weakens, while landowners near proposed routes report property value declines averaging 18%. The situation highlights the complex balance between environmental progress, energy economics, and property rights in rural America.