North Dakota Approves Summit Carbon Pipeline Route

November 18, 2024

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by Jeff Beach (North Dakota Monitor) North Dakota regulators on Friday approved a route permit for the Summit Carbon Solutions pipeline, a significant win for what the company says is the world’s largest carbon capture project.

The three-person Public Service Commission voted unanimously to approve the pipeline permit. The commission had denied Summit a route permit in 2023, but changes the company made to its route helped convince the commission to reverse its position.

Summit plans to put 333 miles of pipeline through North Dakota, part of a 2,500-mile network of pipelines in five states. The pipelines are planned to connect 57 ethanol plants, including Tharaldson Ethanol at Casselton, to an underground carbon storage site west of Bismarck.

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Ethanol plants emit carbon dioxide as part of the fermentation process in turning corn into fuel. That carbon can be captured, compressed and put into a hazardous liquid pipeline.

Summit announced its plans in 2021 and had hoped to begin construction in 2023, but has faced pushback from some landowners and several legal challenges as it has tried to obtain the needed permits.

Supporters view the project as vital to helping the ethanol industry compete in low-carbon fuel markets. Ethanol is a key market for corn growers.

Opponents cite safety concerns, damage to farmland and property values and an infringement on property rights. Some landowners also have complained about Summit’s business practices.

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Brian Jorde of Nebraska-based Domina Law, which represents landowners fighting the pipeline in North Dakota and other states, said the decision was expected based on comments and questions by the PSC during the re-hearing process.

“We will carefully review the written order for errors and address those accordingly,” Jorde said in an email. “The PSC decision is phase one in a multi-phase process.”

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Summit would benefit from federal tax credits of $85 for every ton of CO2 stored. It would sequester 18 million tons of carbon dioxide per year.

Commission Chair Randy Christmann emphasized that the PSC approval in North Dakota does not guarantee that Summit has the right to use eminent domain to force landowners to provide easements for the pipeline. A decision on eminent domain would have to be made in the courts.

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Christmann also said the ruling does not conclude that the Summit pipeline is a common carrier, an important designation for obtaining the right to use eminent domain.

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Emmons and Burleigh counties had passed ordinances that would have severely restricted Summit’s ability to site a pipeline through those counties, but the PSC ruled that state law supersedes local ordinances on carbon pipelines.

Carbon pipeline regulation is of interest to North Dakota’s oil and gas industry. Summit’s plan is for permanent underground storage, but carbon dioxide can be pumped into oil well sites to help extract more oil, a process called enhanced oil recovery.

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Carbon capture and sequestration is being used by two North Dakota ethanol plants, Red Trail at Richardton and Blue Flint at Underwood.

Christmann noted that North Dakota has had a CO2 pipeline operating for about 20 years, running from the Dakota Gasification plant near Beulah to an oil field in Canada. It runs about 10 miles from his ranch in western North Dakota.

Commissioner Sheri Haugen-Hoffart also mentioned that pipeline.

“North Dakota has managed successfully the CO2 transportation and sequestration projects,” Haugen-Hoffart said. “Our state has a history of reasonable pipeline management, and thousands of miles of pipeline operate under strict state and federal regulations.”

Summit chose western North Dakota as a permanent storage site because the area has geology to keep the CO2 deep underground with a cap rock keeping it from reaching the surface.

Iowa-based Summit will need a separate storage permit from the North Dakota Industrial Commission.

Summit also needs a permit in South Dakota, where it already has been denied once.

Iowa has granted Summit a permit, and the company says it plans to try again for a permit in South Dakota. Minnesota’s Public Utilities Commission is expected to vote Dec. 12 on a 28-mile segment near the North Dakota state line.

The project also includes Nebraska, which has no state agency in charge of issuing permits for CO2 pipelines. READ MORE

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Summit Carbon Solutions Secures North Dakota Pipeline Permit (Summit Carbon Solutions)
Summit Carbon Solutions granted North Dakota pipeline permit: Summit Carbon Solutions has secured over 82% of the easements for the North Dakota route (Offshore Technology)
Summit wins North Dakota approval for carbon pipeline (Agri-Pulse)
In reversal, North Dakota OKs Summit pipeline: Approval comes after Iowa granted permit for the CO2 route (The Gazette/North Dakota Monitor)
Summit Ag Chairman says pipeline project to grow ethanol plants by millions of bushels annually (AM1100TheFlag.com)
North Dakota regulators consider underground carbon dioxide storage permits for Midwest pipeline (ABC News/Associated Press)
Summit Carbon Solutions Secures Sequestration Permits from North Dakota Industrial Commission (Summit Carbon Solutions)

Excerpt from Summit Carbon Solutions: Critical Milestone Achieved for Carbon Capture and Storage Infrastructure Project -- Summit Carbon Solutions is pleased to announce that the North Dakota Public Service Commission has granted it a Route Permit*, a significant milestone in advancing Summit’s CO2 pipeline project. This decision highlights the Commission’s thorough review process and dedication to balancing economic opportunities with stakeholder interests.

“We commend and respect the North Dakota Public Service Commission for their diligence and thoughtful approach in reviewing this project,” said Wade Boeshans, Executive VP of Summit Carbon Solutions. “This decision is a testament to North Dakota’s commitment to fostering innovation while working closely with communities and industries. We look forward to continuing to collaborate with stakeholders across the state to deliver long-term benefits for farmers, energy producers, and local communities.”

Summit Carbon Solutions has worked extensively with North Dakota landowners, community leaders, and other stakeholders and has implemented material changes incorporating their feedback. These efforts have fostered a path forward that aligns with the state’s priorities and supports North Dakota’s leadership in agriculture and energy innovation.

“Summit Carbon Solutions has been amazing to work with,” said Joshua Seil, a signed landowner along the Bismarck reroute. “They showed up at our home anytime requested of them and have thoroughly explained all issues/concerns we have had. They even offered to move the pipeline within limitations on my land to have the best fit for everyone involved. They listened to my wife and I’s concerns, answered any questions rendered to them, and have been very accommodating throughout this entire process.”

With more than 82% of the easements for the North Dakota route secured, Summit Carbon Solutions remains committed to working collaboratively with affected landowners and communities as the project progresses toward construction and operations. Summit has secured a permit in Iowa for its base scope pipeline route and will apply in South Dakota on November 19. The project aims to support North Dakota’s leadership in energy innovation while opening new markets for low-carbon ethanol and driving economic growth across the region.

About Summit Carbon Solutions: 

Summit Carbon Solutions is driving the future of agriculture by expanding economic opportunities for ethanol producers, strengthening the marketplace for Midwest-based farmers, and creating jobs. In developing the largest carbon capture and storage project in the world, the company seeks to connect industrial facilities via strategic infrastructure to store carbon dioxide safely and permanently in the Midwest United States.

For more information, visit www.SummitCarbonSolutions.com. READ MORE

Excerpt from ABC News/Associated Press: A North Dakota panel will consider whether to approve permits for underground storage of carbon dioxide that a proposed pipeline would carry from ethanol plants throughout the Midwest -- A North Dakota panel will consider Thursday whether to approve permits for underground storage of hundreds of millions of metric tons of carbon dioxide that a proposed pipeline would carry from ethanol plants throughout the Midwest.

Approval from the governor-led, three-member Industrial Commission would be another victory for Summit Carbon Solutions' controversial project, though further court challenges are likely. Last month, the company gained approval for its North Dakota route, and Iowa regulators also have given conditional approval.

Also on Thursday, Minnesota utility regulators were scheduled to consider approval for a 28-mile leg of the project of the project.

Summit's 2,500-mile, $8 billion pipeline would transport planet-warming CO2 emissions from 57 ethanol plants in North Dakota, South Dakota, Iowa, Minnesota and Nebraska for underground storage in central North Dakota.

North Dakota Republican Gov. Doug Burgum chairs the Industrial Commission, which includes the state attorney general and agriculture commissioner and oversees a variety of energy topics and state-owned enterprises.

Burgum is President-elect Donald Trump's choice for Interior Secretary and to lead a new National Energy Council. Burgum supports Summit's project and has frequently touted North Dakota's underground carbon dioxide storage as a “geologic jackpot.” In 2021, he set a goal for the No. 3 oil-producing state to be carbon-neutral by 2030. His term ends Saturday.

Summit applied for permits for three storage facilities, which would hold a combined, estimated maximum of 352 million metric tons of CO2 over 20 years. The pipeline would carry up to 18 million metric tons of CO2 per year to be injected about 1 mile (1.6 kilometers) underground, according to an application fact sheet.

Summit's documents detail a well site layout encompassing a pump/meter building, gas detection stations, inlet valves and emergency shutoff valve.

Carbon dioxide would move through the pipeline in a pressurized form to be injected deep underground into a rock formation.

Jessie Stolark, who leads a group that includes Summit and supports the project, said the oil industry has long used similar technology.

“We know that this can be done safely in a manner that is protective of human health and underground sources of drinking water,” said Stolark, executive director of the Carbon Capture Coalition.

Summit's project has drawn the ire of landowners around the region. They oppose the potential taking of their property for the pipeline and fear a pipe rupture releasing a cloud of heavy, hazardous gas over the land.

A North Dakota landowners group is challenging a property rights law related to the underground storage, and attorney Derrick Braaten said they likely would challenge the granting of permits for the storage plans.

“The landowners that I'm working with aren't necessarily opposed to carbon sequestration itself,” Braaten said. “They're opposed to the idea that a private company can come in and use their property without having to negotiate with them or pay them just compensation for taking their private property and using it.” READ MORE

Excerpt from Summit Carbon Solutions: Major Milestone in Advancing the Critical Infrastructure Project

Ames, Iowa [December 12, 2024] –Summit Carbon Solutions announced today that it has received three Class VI sequestration permits from the North Dakota Industrial Commission (NDIC), marking a critical step forward in the Midwest Carbon Express project. These permits authorize the safe and permanent storage of carbon dioxide (CO₂) in North Dakota’s deep saline geologic formations, further establishing the state as a leader in carbon capture and storage (CCS) innovation.

“These sequestration permits are the result of years of rigorous scientific study, engineering design, and input from regulators, landowners, and local leaders,” said Wade Boeshans, Executive VP of Summit Carbon Solutions. “This milestone underscores North Dakota’s leadership in advancing CCS technology and highlights how infrastructure projects like ours can drive economic growth while enabling energy innovation. With these permits, we’re one step closer to providing vital infrastructure that benefits farmers, ethanol producers, and communities across the Midwest.”

The permits allow Summit Carbon Solutions to permanently store more than 350 million metric tons of CO₂ in geologic formations more than a mile underground. This process ensures long-term safety while decarbonizing 57 ethanol plants across five states. Combined with the project’s pipeline infrastructure, the sequestration sites in North Dakota will enable farmers and ethanol producers to access new markets for low-carbon fuels, including sustainable aviation fuel (SAF) and green fuels, while supporting the broader goals of energy and economic sustainability.

With today’s approval of both the sequestration permits and the Minnesota pipeline permit, along with recent major milestones including the North Dakota pipeline permit and the Iowa permit, Summit Carbon Solutions is making significant progress toward project completion. With the South Dakota PUC application also submitted, Summit Carbon Solutions is on track to begin construction in early 2026 and operations in 2027. READ MORE