Summit Carbon Solutions’ ambitious Midwest carbon pipeline project hit a major roadblock after the South Dakota Public Utilities Commission (PUC) voted 2-1 to reject its route permit.
Commissioner Kristie Fiegen, who led the denial, said the proposed route “lacked the form and content required” and simply was not viable. New state laws banning the use of eminent domain for carbon pipelines made Summit’s project increasingly difficult to advance, the commissioners agreed.
Summit, which has already invested more than $150 million in its South Dakota operations, said it would refile with a revised, smaller route.
“While we are disappointed in today’s decision, we remain committed to South Dakota,” the company said, warning that the ethanol industry, farmers, and land values could suffer without the project.
South Dakota was a key part of the planned 2,500-mile, $8.9 billion pipeline designed to transport carbon emissions from ethanol plants across Iowa, Minnesota, Nebraska, North Dakota, and South Dakota to permanent underground storage in North Dakota.
The project has already secured approvals in Iowa, Minnesota, and North Dakota. Tuesday’s decision was seen as a major victory for landowners who have pushed back fiercely against Summit’s plans.
“Today is a victory for South Dakota landowners and local control,” said Ed Fischbach of Dakota Rural Action.
Relevant: Summit Seeks To Delay Lawsuits Amid South Dakota Eminent Domain Law
Summit had sought a timeline extension to negotiate voluntary agreements with landowners instead of relying on eminent domain powers. But the PUC ultimately concluded there was no viable path forward under the current plan due to widespread landowner opposition.
Rather than suing the state, Summit plans to reshape its route — dropping branches to ethanol plants that face the most resistance and working directly with landowners to secure new deals.
The stakes are high: ethanol production is critical to the Midwest economy, consuming nearly 40% of US corn. Lowering the carbon footprint of ethanol through carbon capture could make the fuel far more competitive in emerging low-carbon markets.
For now, the future of Summit’s carbon pipeline remains uncertain — and the company’s next move in South Dakota will be closely watched.
Read more: Summit Gets The Green Light For Carbon Capture Pipeline In Minnesota
