Carbon Connector: The Summit Carbon Solutions’ Pipeline

July 28, 2021

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by Lisa Gibson (Ethanol Producer Magazine) The Summit Carbon Solutions’ pipeline, a visionary multi-billion dollar project in the making representing about 15% of the U.S. ethanol industry, will allow producers to permanently sequester their carbon dioxide and cut their CI scores in half.

Stretching across five states and collecting carbon dioxide from 30 ethanol plants for long-term underground sequestration, the $4.5 billion Summit Carbon Solutions pipeline project is the largest capture and storage project in the world. With a target completion date three years out, engineering and design work is underway, says Justin Kirchhoff, president of Summit Ag Investors with Summit Agricultural Group, Summit Carbon Solutions’ parent company.

“Nothing we’re doing here is new,” Kirchhoff says. “We’re just doing it on a much larger scale. The technology and safety record around these technologies are really well-known.”

Brad Crabtree, director of the Carbon Capture Coalition, agrees. “The technology isn’t new,” he says. “The CO2 has been captured from ethanol plants for many, many years. Not just from a climate standpoint, but even just from a business standpoint to produce CO2 for a whole range of purposes.

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Summit Carbon Solutions has signed long-term offtake agreements with 30 ethanol plants in five states: North Dakota, South Dakota, Minnesota, Iowa and Nebraska, Kirchhoff says.

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The pipeline will end in North Dakota, where the carbon will be geologically stored long-term.

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"... And only two states have primacy over Class 6 wells—North Dakota and Wyoming are the only two that have regulatory jurisdiction over carbon sequestration wells.”

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Summit Carbon Solutions also partnered with the Energy & Environmental Research Center at the University of North Dakota to determine injection well siting and feasibility. “EERC has been fantastic to work with,” Kirchhoff says. “And the oil industry in North Dakota and the advancements and understanding of geology there really made us comfortable moving forward. The broad understanding of North Dakota geology has definitely been helpful.”

Summit Carbon Solutions will own the pipeline and capture equipment at all the plants, fully footing the capital costs. Trimeric Corp. is engineering the carbon capture at the plants. Partner plants can opt into the initial investment, and Kirchhoff says he’s optimistic a number of them will. The essential benefit for participating ethanol plants initially is a halved carbon intensity (CI) score, he says.

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Tax Credit Boost
The enhancement of the 2018 45Q tax credit was a critical project catalyst for Summit Carbon Solutions, Kirchhoff says. “We spent eight to 12 months meeting with ethanol plants and describing the opportunity. From our perspective, the most powerful part of this is we really do view it as a partnership between Summit and ethanol plants.”

Crabtree says the project is exactly what 45Q was designed to support.

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“Ethanol is the ideal project for early carbon capture because the stream coming off fermentation is essentially a pure stream of CO2."

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He might be right, as several other sequestration projects in the industry—including a Valero partnership pipeline intending to span 1,200 miles through Nebraska, Iowa, South Dakota, Minnesota and Illinois, would touch even more U.S. ethanol production. “If those projects move forward, we’d be capturing the bulk of the ethanol carbon and that’s really extraordinary,” Crabtree says.

Beyond Valero and Summit Carbon Solutions’ large pipeline projects, producers with carbon capture and storage systems operating or under development include ADM in Illinois, Red Trail Energy in North Dakota, Blue Flint in North Dakota, White Energy in Texas, Alto Ingredients in Illinois, and One Earth Energy in Illinois.

In addition, Battelle and Catahoula Resources announced in early June that they will partner to offer carbon capture and storage for ethanol plants across the U.S. READ MORE

Our Low Carbon Calling (Ethanol Producer Magazine)

The carbon removal industry needs to grow to be the size of the oil and gas industry -- To capture 10 billion tons of CO2 a year by 2050, there is going to need to be a huge expansion of technology like direct air capture machines. (Fast Company)

Summit Carbon Solutions Announces Strategic Investment from John Deere (Summit Carbon Solutions/PR Newswire)

Summit Carbon Solutions receives support to develop large-scale CCS for the agriculture industry (Gasworld)

Carbon Spotlight: Summit Carbon Solutions (Growth Energy)

Company wants to build a carbon sequestration pipeline in 30 Iowa counties. Find out where. (Des Moines Register)

'My family's been through this 4 times': Story County residents push back against carbon sequestration pipeline (Ames Tribune)

Nebraska is likely headed for another pipeline controversy — this time over carbon dioxide (Omaha World Herald/Governors' Biofuels Coalition)

Carbon dioxide pipelines may be opposed in Nebraska, Iowa (Norfolk Daily News)

Your Letters: Carbon Removal Could, in Fact, Bring Great Benefits (Iowa State University Bioeconomy Institute/Ames Tribune)

Governor’s carbon sequestration task force to review policy recommendations (Radio Iowa)

The benefits of CO2 pipeline Reduces carbon emission, delivers huge profits (Chronicle Times)

Getting Access for Carbon Pipelines: Ethanol Producers See Carbon Pipeline as Boon, While Some Landowners Fear Farmland Damage, Yield Losses (DTN Progressive Farmer)

Massive Midwest pipeline, a test for North Dakota's carbon capture goals, hits landowner snags (AgWeek)

World's largest carbon capture pipeline aims to connect 31 ethanol plants, cut across Upper Midwest (AgWeek; includes VIDEO)

LETTER: Carbon capture ally for ethanol (Kossuth County Advance)

Carbon dioxide pipelines unearth anxiety in farm country (Agri-Pulse)

Innovative ethanol project will reduce emissions (Mankato Free Press)

Dakota Access Pipeline hurt Iowa crop yields, study shows (Axios)

Summit Seeks Pipeline Permit: Summit Carbon Solutions Files for Pipeline Permit in Iowa (DTN Progressive Farmer)

Summit Carbon Solutions files for pipeline permit in Iowa: The Midwest Carbon Express pipeline would gather carbon from ethanol plants in five states and send liquid carbon dioxide to western North Dakota for underground storage. (AgWeek)

Opinion: Carbon pipelines before heritage and water quality — is that the Iowa way? (Des Moines Register/Yahoo!)

Statewide View: Carbon capture may help unlock an economic boom in Minnesota (Duluth News Tribune)

U.S. carbon pipeline proposals trigger backlash over potential land seizures (Reuters)

Carbon dioxide pipelines planned for Minnesota fall into regulatory black hole (Star Tribune)

Carbon Pipeline Companies Could Seize Land From Hundreds of Landowners (World War Zero)

Summit Carbon Solutions advances in South Dakota (Summit Carbon Solutions/Ethanol Producer Magazine)

Carbon Pipeline Plans See Pushback: Eminent Domain Debate Heats Up in Iowa as Carbon Pipeline Projects Stack Up (DTN Progressive Farmer)

Oil driller invests in carbon-capture pipeline for Midwest: North Dakota’s biggest oil driller says it will commit $250 million to help fund a proposed pipeline that would gather carbon dioxide produced by ethanol plants across the Midwest and pump it underground for permanent storage (ABC News)

Continental Resources invests in CCS project: Update (Argus Media)

Some Siouxland ethanol farmers in favor of carbon capture pipeline (Siouxland Proud; includes VIDEO)

CO2 pipeline explained (KELOLand; includes VIDEO)

Navigator signs letters of intent with 4 national labor unions (Ethanol Producer Magazine)

Carbon Pipeline to Improve Ethanol Plant and Ag Profitability, Developer Says (AgWeb; includes AUDIO)

Summit Carbon Solutions Partners with Bushmills Ethanol (Summit Carbon Solutions/PR Newswire)

Summit Carbon Solutions asks for more time on South Dakota permit, sets route update timeline (AgWeek)

Judge rules names of landowners in path of carbon capture pipeline should be made public (Des Moines Register)

Winnebago Tribe requests impact study on proposed CO2 pipelines (Siouxland Proud)

South Dakota farmers don't see Summit carbon dioxide pipeline as a public utility worthy of eminent domain (AgWeek)

Carbon Pipeline Resistance -- 'Carbon Express' Pipeline Runs Into Skepticism in Minnesota Farm Country (DTN Progressive Farmer)

N Dakota CO2 bills challenge to oil producers (Argus Media)

Excerpt from Omaha World Herald/Governors' Biofuels Coalition: Dallas-based Navigator CO2 Ventures is also planning a five-state carbon dioxide pipeline that would extend from near Sioux City, Iowa, to an ethanol plant in Albion, Nebraska, as part of its 1,200-mile carbon-capture project. Some fertilizer plants may be added as customers as well.

Officials with the Nebraska Ethanol Board and the two pipeline companies said these projects are vital to the future of ethanol, by lowering the carbon impact of the corn-based fuel and opening up new markets in states like California and Oregon that have adopted goals for reducing greenhouse gas emissions to combat global warming.

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But officials with the Nebraska chapter of the Sierra Club and Bold Nebraska, which led opposition to the Keystone XL pipeline, said their organizations will fight the CO2 pipelines.
They said that such pipelines, because they operate at high pressure, can pose a safety risk in the event of a leak and that they are a “greenwashing scheme” for fossil fuels.

“CO2 pipelines are a questionable attempt to prop up fossil fuels by taking advantage of government subsidies while providing a pretense that they are environmentally friendly,” said Ken Winston of the Nebraska Sierra Club.

He and Jane Kleeb, founder of Bold Nebraska, said they are worried about the lack of state regulations governing CO2 pipelines.

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Proponents of the CO2 pipelines say their projects will be less of a risk because carbon dioxide isn’t flammable, like oil or gasoline. While carbon dioxide can cause someone to suffocate, any leak would soon dissipate and would not pose a risk unless someone was in close proximity, they said.

“There’s risks with any project. But we have a track record of doing things right,” said Elizabeth Burns-Thompson of Navigator CO2 Ventures.

Harris, of Summit Carbon Solutions, said he’s been encouraged by the support for the projects during recent public hearings held in Iowa counties that will be crossed by 700 miles of its CO2 pipelines.

While similar public hearings are not required in Nebraska, officials with both pipeline projects say they plan to hold open house sessions with Nebraska landowners later this year.

Unlike the Keystone XL, which struggled to demonstrate direct benefits to Nebraska, the two CO2 pipelines are partnering with local ethanol plants as ethanol works to become a more environmentally friendly product in the face of more competition from electric cars. READ MORE

Excerpt from Kossuth County Advance: Summit Carbon Solutions’ initiative will accelerate our long-term efforts to reduce the carbon intensity (CI) score of the ethanol we produce. The direct result of reducing CI scores allows these ethanol plants to access low-carbon fuel markets found across the country including in Oregon and Washington, plus others that are likely to adopt similar standards in the years to come. This growing marketplace is willing to pay a premium for more sustainable fuel sources and represents one of the most significant economic opportunities for ethanol and corn growers in the years to come.Failing to pursue this opportunity would have a potentially devastating impact on the state. As just one example, the CORN, LP facility utilizes 25 million bushels of corn every year, largely purchased from local corn growers in Wright County and surrounding communities. If the ethanol industry doesn’t remain competitive through carbon capture and storage projects like this one, these same farmers could face the real prospect of losing a marketplace currently purchasing more than half of their product. The adverse impact to corn prices and land prices would be substantial. These industries are too important to Iowa’s economy to allow that to happen.

There are other benefits to this project as well. During the construction phase, the project would create between 14,000 and 17,000 high-quality jobs. Long-term, once operational, it would create between 350 and 460 full-time permanent positions. READ MORE

Excerpt from Reuters: Three companies - Summit Carbon Solutions, Navigator Ventures and Wolf Carbon Solutions - have together proposed 3,650 miles (5,874 km) of new pipelines to cut across the Midwest and eventually transport 39 million tons of captured carbon annually from ethanol and fertilizer plants to storage sites in North Dakota and Illinois.

The projects would generate revenue from existing federal and state subsidies for CCS and low-carbon fuels, as well as fees from participating facilities that are eager to mitigate their climate impact.

Iowa would get the bulk of pipeline miles - more than 1,600 miles, or 48%, of Summit and Navigator’s pipelines. The state’s utility regulator, the Iowa Utilities Board (IUB), will ultimately decide whether to permit the projects and grant them the right to use eminent domain.

Summit last month was the first of the pipelines to petition the IUB for a permit and the right to use eminent domain. The application did not, however, contain a required filing on how much land Summit planned to secure with eminent domain.

Summit told Reuters in a statement it had not included the filing because it is currently focused on getting voluntary easements with landowners.

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Ty Rosburg, vice chair of the board of supervisors of Crawford County, which is among the counties objecting to eminent domain, said he and his colleagues are “not opposed to the pipeline, per se.” But they fear the use of eminent domain could prevent farmers from getting the best financial outcome.

“All we’re really after is a fair talk, back and forth,” he said.

Republican Iowa State Senator Jeff Taylor, meanwhile, introduced a bill this month to block pipelines from taking private agricultural land through eminent domain. READ MORE

Excerpt from Star Tribune: Right now, the CO2 pipelines don't require approval from the Minnesota Public Utilities Commission (PUC). But the PUC in December opened a proceeding on whether it should change state regulations to deem CO2 pipelines as hazardous. The Minnesota Departments of Transportation, Agriculture, Commerce and Natural Resources (DNR) all favor such a change.

"A developing body of research has raised concerns about the safety and environmental effects of pipelines transporting CO2," the DNR said in a PUC filing Monday. "Leaks or breaks in a pipeline can cause CO2 to accumulate in low-lying areas [including basements of area residences and building], thereby displacing oxygen."

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There are about 5,000 miles of U.S. carbon dioxide pipelines — a fraction of the nation's 2.6 million miles of natural gas, oil and petroleum products pipelines.

The worst accident on CO2 line appears to have occurred in 2020 near Satartia, Miss. A 24-inch pipeline owned by an oil and gas company ruptured, leading to the evacuation of more than 300 people. Forty-six were treated for injuries at local hospitals.

Law enforcement officers told the Jackson (Miss.) Clarion Ledger that some people overtaken by the gas were walking around like "zombies" while others were "foaming at the mouth."

The Mississippi rupture also released hydrogen sulfide, a dangerous gas often lurking in naturally occurring CO2 deposits. It wouldn't be present, however, in the purer CO2 stream from ethanol plants, Summit and Navigator say. Also, the diameter of the CO2 pipes in Minnesota would be relatively small — primarily 6 to 8 inches.

Still, CO2 leaks alone can cause breathing difficulties, rapid heartbeat, vomiting, headaches and impaired thinking. The Great Plains Institute said in a PUC filing that there has not been a fatality in the history of CO2 pipeline operations. But death by suffocation is possible if CO2 concentrations are high enough, including for wildlife and livestock near a pipeline rupture.

CO2 flowing through pipelines is pressurized. It has the density of a liquid and the viscosity of gas — both good traits for transport. But in a rupture, CO2 rapidly depressurizes and returns to a pure gas phase, raising the risk of "ductile fractures," said the Pipeline Safety Trust's Caram.

"If there is a ductile fracture, it can rip the line like a zipper and it can be miles long," he said.

Natural gas pipelines are primarily overseen by the federal government. In Minnesota, the PUC issues permits for pipelines carrying hazardous liquids including oil, petroleum-derived products and ammonia.

The PUC has been fielding comments on whether to include carbon dioxide on that list. For now, the C02 pipelines would need only county permits.

The PUC acted soon after Minnesota-based Clean Up the Riverfront Environment (CURE) petitioned for a state environmental review of the CO2 pipelines. CURE says an "environmental assessment worksheet" is required by law.

Both pipeline companies have since said they will voluntarily conduct the assessment. But both are against the PUC deeming CO2 a hazardous liquid for their pipelines.

Along with branches of Gov. Tim Walz's administration, the Upper Sioux Community, two labor unions, CURE and several citizens have filed comments with the PUC asking that CO2 pipelines be regulated as hazardous. READ MORE