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

Related articles

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)

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