Summit Carbon Solutions has received unanimous approval from the Minnesota Public Utilities Commission (PUC) for a permit to construct a 28-mile segment of its ambitious 2,500-mile carbon capture pipeline network across five states, according to a company statement on Thursday.
This segment will connect an ethanol plant in Fergus Falls to North Dakota, transporting pressurized carbon dioxide (CO2) to underground storage wells.
The pipeline, comprising a 4.5-inch diameter pipe buried 54 inches underground, is expected to begin construction in 2026, pending right-of-way agreements with seven landowners along the route.
Summit’s business model heavily relies on federal 45Q tax credits, incentivizing carbon sequestration, which led to concerns about the project’s long-term feasibility being raised during the PUC review, as reported by Iowa Capital Dispatch on Friday.
Commissioner John Tuma noted the uncertainty surrounding these tax credits, as they could be repealed by a future Congress, while a Summit representative acknowledged this risk, stating that the project’s viability would need reassessment without these credits.
However, the PUC determined that the project’s benefits outweighed its risks.
Relevant: Summit Carbon Pipeline Nears Final Approval in Minnesota
Summit Carbon Solutions’ CEO Lee Blank thanked the commission, emphasizing the balance between economic growth and environmental responsibility.
Critics, including rural advocacy group CURE, expressed disappointment, citing unresolved questions about the pipeline’s potential environmental and social impacts.
“We are disappointed, if not surprised, by the PUC’s decision to give Summit its permit,” the group was quoted as saying by Iowa Capital Dispatch, adding that “many questions remain about this project, how it will roll out, and what the impacts will be.”
Environmentalists argue that captured carbon could eventually be used in enhanced oil recovery, potentially offsetting its decarbonization benefits.
Summit, established in 2021, stands to gain over $18 billion in tax credits if the project achieves its full scale.
The PUC approval in Minnesota follows a comprehensive environmental review conducted in 2024, which deemed the project’s risks manageable.
Read more: Minnesota Orders A Review For Summit’s Carbon Pipeline Project
