Iowa utility regulators on Tuesday approved a controversial carbon dioxide pipeline to transport emissions of the climate-warming greenhouse gas to underground storage, in a victory for Summit Carbon Solutions Project after setbacks in other states and opposition from Midwestern landowners.
The company still has many hurdles ahead before it can begin building in Iowa, including getting approval from other states.
The $5.5 billion, 2,500-mile (4,023.36-kilometer) network of natural gas pipelines would transport planet-warming CO2 emissions, liquefied under pressure, from more than 50 ethanol plants in Iowa, Minnesota, Nebraska, Dakota North and South Dakota, to be stored underground downtown. North Dakota.
Farmers and the ethanol industry see the pipeline as a way to qualify for federal tax benefits they consider essential to growing a market. for cleaner-burning aviation fuel. Corn is among the top two crops in the Midwest, and Iowa is a leader in corn and ethanol production.
“Whether you think it’s smart or silly, the world’s biggest airlines want to decarbonize their fuel. Carbon capture and sequestration puts Iowa ethanol into this market, potentially providing a generational boost to Iowa’s economy,” said Iowa Renewable Fuels Association Executive Director Monte Shaw in a statement.
Summit CEO Lee Blank welcomed the decision in a statement.
Opponents of the project, including many landowners, They fear that their land will be taken for the pipeline and that a potential pipeline rupture could release dangerous CO2 gas. A coalition opposing Summit’s project has vowed to fight the Iowa council’s decision.
The landowner’s attorney, Brian Jorde, said the ruling was expected, with a long process for Summit still ahead, such as applying in South Dakota.
“It’s just one small thing in a maze, in an athletics event full of obstacles they have to overcome,” Jorde said.
The Iowa Utilities Board approved Summit’s January 2022 application for a permit to build and operate the pipeline. But before the board can issue the permit, the company must provide proof of an insurance policy of at least $100 million to pay for any damages resulting from the pipeline project. Summit must provide proof of insurance annually.
The company also cannot begin construction until it has approvals from North Dakota and South Dakota, including for routes in both states and underground storage in North Dakota. Summit also needs approvals from Minnesota and Nebraska before it can begin building lines for ethanol plants in those states.
The decision by Iowa regulators comes after hearings last year and setbacks in other states. North Dakota Regulators denied a location license in August, but later agreed to reconsider. Hearings on the underground storage proposal were held earlier this month.
South Dakota Regulators denied Summit’s request In September; Summit said it plans to present again in early July. In Nebraska, where Summit must work with individual counties, at least one county denied the permit.
The Iowa panel also granted the company the right of eminent domain over numerous parcels of land, but only after issuing the permit. The extent of Summit’s eminent domain powers was not immediately clear from the 500-page order. The council denied the use of some parcels of land; others require route modifications. Eminent domain is the taking of private land for public use with compensation to the owners.
The order also includes several other Summit requirements, such as monthly construction reports and grants for equipment for cities and counties to respond to incidents.
Supporters view carbon capture projects as Summit as a fighter against climate change, with new federal tax incentives and billions from Congress for these carbon capture efforts. Opponents question the technology effectiveness at scale and the need for potentially huge investments over the course of cheaper renewable energy sources.
Companies behind two other proposed CO2 pipeline projects in the Midwest canceled or shelved their plans. From the renewable fuels industry’s perspective, blows to projects like Summit’s could jeopardize the enormous potential of a new jet fuel market that the industry believes would continue for many years.
North Dakota Republican Governor Doug Burgum supports the pipeline. He hailed North Dakota’s underground rock formations as a “geological jackpot” for CO2 storage potential. In 2021, he set a goal for North Dakota to become carbon neutral by 2030. He is not seeking re-election this year, and is an excellent choice to be former President Donald Trump’s running mate.
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Dura reported from Bismarck, North Dakota.
