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Released July 03, 2024 | SUGAR LAND
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Researched by Industrial Info Resources (Sugar Land, Texas)--Executives at Summit Carbon Solutions (Ames, Iowa) had reason to celebrate last week when the Iowa Utilities Board (IUB) approved the company's planned carbon-dioxide (CO2) pipeline to be constructed in the state. However, not all Iowans support the pipeline, and the use of eminent domain in its construction is on the table.
Summit Carbon has agreements in place to capture carbon dioxide from 57 ethanol plants in five states, including Iowa, Minnesota, North Dakota, South Dakota and Nebraska. The pipeline would transport up to 12 million metric tons per year of CO2 to an underground sequestration site in North Dakota. Iowa leads the U.S. in ethanol production, and the Iowa portion of Summit's pipeline would include approximately 700 miles of pipe in 29 counties.
Summit said that 75% of Iowa landowners have signed voluntary easements for the project, and the company is working to get more on board. For those unwilling to voluntarily sell land for the pipeline, the IUB's decision granted Summit the right of eminent domain, judging that the pipeline "will promote the public convenience and necessity." The board said it had examined each of the more than 90 cases for parcels of land of subject to eminent domain and ended up denying only four, along with two valve placements.
Opponents were quick to respond, with both landowners and environmental groups including the Sierra Club vowing to challenge the project. After the decision, 31 Republicans in the Iowa House and Senate members released a statement condemning the IUB's decision and vowing to "oppose this proposal at every step. Their statement continued: "We could not be more disappointed that the Iowa Utilities Board, despite overwhelming compelling evidence to the contrary, found that the Summit carbon dioxide pipeline scheme is somehow in the 'public interest and necessity.'"
Following the approval, Summit said it would begin construction of the pipeline next year, with operation expected to begin in 2026. However, the company still has a few more hurdles to jump through before the full pipeline can come to fruition. North Dakota, where the sequestration site is located, is reconsidering a permit it previously turned down. In May, the North Dakota Supreme Court sided with Summit in disputes with landowners who refused access to their land to Summit for survey purposes. Summit also needs reconsideration of a South Dakota permit, which it expects to file in July. "We look forward to engaging with the state throughout this process and are confident in a successful outcome," said Summit Chief Executive Officer Lee Blank of the South Dakota decision.
Subscribers to Industrial Info's Global Market Intelligence (GMI) Pipelines Project Database can learn more by viewing the related project reports.
Summit gained additional shippers when Navigator Energy Services LLC canceled its proposed Heartland Greenway carbon pipeline, which covered much of the same area as Summit's pipeline. The nation's second-largest ethanol producer, Valero Energy Corporation (NYSE:VLO) (San Antonio, Texas), had been signed on as the anchor system on Navigator's system. In March, Valero signed eight of its plants onto the Summit system, including one each in Nebraska, Minnesota and South Dakota and five in Iowa. For additional information, see March 8, 2024, article - After Cancellation of One Carbon Pipeline, Valero Signs with Another.
While Summit provides the largest potential system for transporting carbon by pipe in the U.S., it's by no means the only one. Tallgrass Energy Partners (Leawood, Kansas) has judged a Midwest natural gas pipeline would be more lucrative as a CO2 pipeline, and is underway with converting it to this purpose. The 400-mile Trailblazer Pipeline would serve as the backbone for transporting up to 10 million tons per year of CO2 to a sequestration site in southeastern Wyoming. The pipeline conversion is expected to be completed later this year, but work on the sequestration site has not yet begun. Subscribers can learn more by viewing the reports on the pipeline conversion and sequestration hub.
Other active U.S. carbon pipeline projects include Exxon Mobil Corporation's (NYSE:XOM) (Spring, Texas) Shute Creek carbon-capture and storage project, which includes a 10-mile pipeline from ExxonMobil's LeBarge facilities to a disposal well under construction near Green River, Wyoming. Subscribers can learn more by viewing the related project reports.
Subscribers to Industrial Info's GMI Database can click here to view reports for many of the projects discussed in this article and click here for the related plant profiles.
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking over 200,000 current and future projects worth $17.8 trillion (USD).
Summit Carbon has agreements in place to capture carbon dioxide from 57 ethanol plants in five states, including Iowa, Minnesota, North Dakota, South Dakota and Nebraska. The pipeline would transport up to 12 million metric tons per year of CO2 to an underground sequestration site in North Dakota. Iowa leads the U.S. in ethanol production, and the Iowa portion of Summit's pipeline would include approximately 700 miles of pipe in 29 counties.
Summit said that 75% of Iowa landowners have signed voluntary easements for the project, and the company is working to get more on board. For those unwilling to voluntarily sell land for the pipeline, the IUB's decision granted Summit the right of eminent domain, judging that the pipeline "will promote the public convenience and necessity." The board said it had examined each of the more than 90 cases for parcels of land of subject to eminent domain and ended up denying only four, along with two valve placements.
Opponents were quick to respond, with both landowners and environmental groups including the Sierra Club vowing to challenge the project. After the decision, 31 Republicans in the Iowa House and Senate members released a statement condemning the IUB's decision and vowing to "oppose this proposal at every step. Their statement continued: "We could not be more disappointed that the Iowa Utilities Board, despite overwhelming compelling evidence to the contrary, found that the Summit carbon dioxide pipeline scheme is somehow in the 'public interest and necessity.'"
Following the approval, Summit said it would begin construction of the pipeline next year, with operation expected to begin in 2026. However, the company still has a few more hurdles to jump through before the full pipeline can come to fruition. North Dakota, where the sequestration site is located, is reconsidering a permit it previously turned down. In May, the North Dakota Supreme Court sided with Summit in disputes with landowners who refused access to their land to Summit for survey purposes. Summit also needs reconsideration of a South Dakota permit, which it expects to file in July. "We look forward to engaging with the state throughout this process and are confident in a successful outcome," said Summit Chief Executive Officer Lee Blank of the South Dakota decision.
Subscribers to Industrial Info's Global Market Intelligence (GMI) Pipelines Project Database can learn more by viewing the related project reports.
Summit gained additional shippers when Navigator Energy Services LLC canceled its proposed Heartland Greenway carbon pipeline, which covered much of the same area as Summit's pipeline. The nation's second-largest ethanol producer, Valero Energy Corporation (NYSE:VLO) (San Antonio, Texas), had been signed on as the anchor system on Navigator's system. In March, Valero signed eight of its plants onto the Summit system, including one each in Nebraska, Minnesota and South Dakota and five in Iowa. For additional information, see March 8, 2024, article - After Cancellation of One Carbon Pipeline, Valero Signs with Another.
While Summit provides the largest potential system for transporting carbon by pipe in the U.S., it's by no means the only one. Tallgrass Energy Partners (Leawood, Kansas) has judged a Midwest natural gas pipeline would be more lucrative as a CO2 pipeline, and is underway with converting it to this purpose. The 400-mile Trailblazer Pipeline would serve as the backbone for transporting up to 10 million tons per year of CO2 to a sequestration site in southeastern Wyoming. The pipeline conversion is expected to be completed later this year, but work on the sequestration site has not yet begun. Subscribers can learn more by viewing the reports on the pipeline conversion and sequestration hub.
Other active U.S. carbon pipeline projects include Exxon Mobil Corporation's (NYSE:XOM) (Spring, Texas) Shute Creek carbon-capture and storage project, which includes a 10-mile pipeline from ExxonMobil's LeBarge facilities to a disposal well under construction near Green River, Wyoming. Subscribers can learn more by viewing the related project reports.
Subscribers to Industrial Info's GMI Database can click here to view reports for many of the projects discussed in this article and click here for the related plant profiles.
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking over 200,000 current and future projects worth $17.8 trillion (USD).
