The approval of Summit Carbon Solutions’ controversial CO2 pipeline project in Iowa paves the way for a $5.5 billion, 2,500-mile endeavour to transport liquefied greenhouse gas emissions for underground storage in North Dakota. The decision sparks debates between supporters highlighting economic benefits and decarbonization goals and opponents expressing concerns over land seizures and environmental risks.
Iowa Greenlights Controversial CO2 Pipeline Project
The Iowa Utilities Board has approved Summit Carbon Solutions’ application to build a controversial carbon dioxide (CO2) pipeline designed to transport liquefied greenhouse gas emissions from over 50 ethanol plants across five Midwestern states to central North Dakota for underground storage. The $5.5 billion project spans 2,500 miles and aims to tap into federal tax incentives while supporting a growing market for cleaner-burning aviation fuel.
Summit Carbon Solutions’ CEO, Lee Blank, welcomed the decision, although the company still faces several hurdles before commencing construction. It must secure additional approvals from North Dakota, South Dakota, Minnesota, and Nebraska. North Dakota regulators, who initially denied a siting permit, have agreed to reconsider. However, South Dakota regulators rejected the project in September.
Supporters of the pipeline, including the Iowa Renewable Fuels Association, see it as a critical step for Iowa’s economy and a way to aid the ethanol industry in meeting decarbonization goals set by major airlines. In contrast, opponents, primarily landowners, worry about land seizures and potential pipeline ruptures. The Iowa Utilities Board’s decision also grants Summit eminent domain rights over certain lands, though the extent and specifics remain unclear.
As part of the approval conditions, Summit must file proof of a $100 million insurance policy to cover potential damages and submit monthly construction reports. This decision follows a series of hearings and mixed reactions from other states, emphasizing the contentious nature of carbon capture projects in climate change mitigation efforts.
