Iowa regulators approve Summit CO2 pipeline, grant eminent domain rights

The Iowa Utilities Board advanced Summit Carbon Solution's application to lay 688 miles of CO2 pipeline in the state and exercise eminent domain, representing a rare victory for the carbon capture and storage developer after it was denied permits in other states.

The three-member panel said in a June 25 decision that it unanimously approved Summit Carbon's request, albeit with certain route and easement modifications, after concluding the pipeline "is in the public convenience and necessity."

The order approves the general route proposal and vests the Ames, Iowa-based company with the right of eminent domain to secure specific parcels of land. But before construction can begin in Iowa, Summit Carbon must get regulatory approval for the North Dakota and South Dakota portions of the project, the board said. In addition, the board will require the developer to file proof of an insurance policy of at least $100 million to cover any damages from construction, maintenance and operation.

Summit Carbon hailed the move as a "significant milestone" for the agriculture industry.

In a joint statement, anti-pipeline group Bold Alliance and several affected landowners vowed to challenge the decision "through every legal and regulatory process available."

Backed by Summit Agricultural Group, Summit Carbon applied for an Iowa permit in January 2022 to construct and operate a liquid CO2 pipeline to transport carbon emissions from ethanol plants to a permanent storage site in North Dakota. The five-state project is billed as a way for ethanol producers in the US Midwest to reduce their carbon footprint, allowing them to market their product as a sustainable fuel.

But in the past two years, the developer has run up against a diverse group of opponents, including carbon capture skeptics like the Sierra Club and climate change deniers who say decarbonization is unnecessary. Opponents also raised concerns about potential safety issues, urging state regulators to hold off on issuing permits until the US Transportation Department updates its CO2 pipeline standards.

In 2023, North Dakota and South Dakota regulators rejected Summit Carbon's siting permit applications, though the developer is trying again. Not long after, Navigator CO2 Ventures canceled plans for a competing CO2 pipeline network due to similar setbacks.

The Iowa Utilities Board, however, said it issued its order in favor of Summit Carbon after concluding the "public benefits of the project outweigh the private and public costs." The decision followed a 34-month regulatory process that drew 4,200 written comments and testimony from more than 200 witnesses and landowners.

Despite the board's overall unanimity, two members disagreed with aspects of the order but were overruled. Board chair Erik Helland said Summit Carbon should not have to obtain permits in North Dakota and South Dakota first, as this "gives away the board's authority to another jurisdiction," the order stated. Board member Joshua Byrnes also dissented in part, disagreeing with the board's approval of a lateral pipeline between two facilities in Ida and Fremont counties. However, the partial dissents do not affect the order's findings and conclusions, the board said.

Summit Carbon recently concluded a hearing in North Dakota for its revised siting permit application. The developer is preparing to file a second South Dakota permit application in early July, CEO Lee Blank said in a June 25 statement.

Competing projects see mixed progress

Proposed to be located in Illinois and Iowa, Wolf Carbon Solution's CO2 pipeline and sequestration project, Mt. Simon Hub, remains off the table following the withdrawal of the company's application with the Illinois Commerce Commission late 2023.

In November 2023, the company announced plans to refile an application for the proposed pipeline and storage facility in early 2024. As of June 26, the ICC has yet to see an updated application for the project which was originally submitted over a year ago.

Other projects have seen more progress, such as Green Plains' Advantage Nebraska, a sequestration site with the capacity to store up to 1.2 million mt of captured carbon.

In mid-June, the company announced that the project was on track to see construction in the second half of 2024, with the potential to begin capturing biogenic carbon dioxide associated with the production of 287 million gallons of ethanol annually beginning in the second half of 2025.

Around the corner, Tallgrass Energy's Trailblazer CO2 pipeline recently held a binding open season for shipments on its proposed 10 million mt/year project.

Once captured in Nebraska, the CO2 would be shipped to eastern Wyoming for sequestration at a Denver-Julesburg Basin site also being developed by Tallgrass.

The proposal is unique compared to other carbon capture projects, as it will be utilizing up to 392 miles of Trailblazer's abandoned natural gas pipeline and repurposing it for CO2 service.