New South Dakota Law Challenges Carbon Capture Pipeline Project
A newly enacted law in South Dakota has significant implications for a planned carbon capture pipeline that stretches 2,500 miles through five states in the Midwest. The law, signed by Governor Larry Rhoden, prohibits the use of eminent domain to acquire land necessary for the project, creating obstacles for Summit Carbon Solutions, the company responsible for the $8.9 billion initiative.
Project Overview
The proposed pipeline is designed to transport greenhouse gas emissions from over 50 ethanol production facilities located primarily in Iowa, Minnesota, Nebraska, North Dakota, and South Dakota. The captured emissions would eventually be stored underground in North Dakota.
Response from Summit Carbon Solutions
Despite the legal challenges posed by the new law, Summit Carbon Solutions is committed to advancing the project. In a recent statement, the company acknowledged the difficulties ahead but emphasized, “all options are on the table” as they explore ways to continue development in other states.
Eminent Domain and Its Implications
Eminent domain is often a crucial element for the success of large infrastructure projects, allowing companies to negotiate property access even if some landowners refuse to sell. Summit has reported securing more than 2,700 easements for the pipeline, with approved routes in Iowa and North Dakota, as well as part of a leg in Minnesota.
However, the legislation now complicates plans in South Dakota, where nearly 700 miles of the intended route are set to run before crossing into North Dakota. Summit has yet to confirm if rerouting through Minnesota is a viable option.
Alternative Solutions Suggested
Karla Lems, the South Dakota law’s sponsor and a Republican representative, suggested that Summit could either negotiate with landowners in South Dakota or consider rerouting through Minnesota into North Dakota. Governor Rhoden also indicated that the new law could serve as “an opportunity to reset” the project’s path rather than an outright prohibition.
The Broader Context
The proposed pipeline is critical to the ethanol industry’s future, particularly as transitions to electric vehicles present new challenges for corn-based fuel products. Approximately 40% of the nation’s corn harvest is processed into ethanol, a significant portion of which is included in fuel sold across the Midwest.
Industry leaders believe jet fuel could provide a valuable new market for ethanol. Yet current rules require that any conversion of ethanol to aviation fuel must result in lower carbon dioxide emissions to qualify for tax incentives aimed at reducing greenhouse gases. The carbon capture pipeline is seen as instrumental in meeting these emission reduction targets.
Future Prospects
It’s been four years since Summit first proposed the pipeline, which faces ongoing legal battles and public objections. Despite these hurdles, the company expressed optimism about the project’s future but did not provide specific plans on navigating the new legal landscape in South Dakota.
Notably, the federal government’s stance on climate regulations has shifted considerably, particularly with the Biden administration’s increased incentives for carbon capture technologies through recent legislation. Conversely, former President Trump’s administration focused more on traditional energy sources, leaving the precise direction of federal policy regarding such carbon capture initiatives uncertain.
Conclusion
The future of the carbon capture pipeline in South Dakota remains in flux as community reactions and legal frameworks develop. With the ethanol sector increasingly seeking pathways to adapt, the outcome of this project will likely hold significant ramifications for both environmental efforts and the agricultural economy.
