Summit Adds 12 Ethanol Plants to Pipeline Proposal in Iowa

January 30, 2024

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by Jared Strong (Iowa Capital Dispatch) Summit Carbon Solutions has reached an agreement to nearly double the number of ethanol facilities that will connect to its proposed carbon dioxide pipeline system in Iowa, the company announced Monday.

The agreement with POET — which says it is the world’s largest biofuel producer — would add 17 ethanol plants to the proposed system in Iowa and South Dakota.

A dozen of those are in Iowa, which gives Summit a total of 25 in the state. Those sites would extend Summit’s footprint into at least seven new counties in Iowa, but the precise routes of those extensions are not yet clear.

The company could not immediately provide an estimate of how many additional miles of pipe will be required. The new locations are near Arthur, Ashton, Coon Rapids, Corning, Emmetsburg, Fairbank, Gowrie, Hanlontown, Iowa Falls, Jewell, Menlo and Shell Rock.

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Summit’s first hazardous liquid pipeline permit request — which has reached the final stage of the Iowa Utilities Board regulatory process — includes about 690 miles of pipe and 12 ethanol producers. Summit filed for a second permit for a 31-mile extension to another ethanol plant last year.

POET finds new partner

The latest announcement is a direct result of Navigator CO2’s abandonment of a similar pipeline proposal about three months ago. POET had an agreement with Navigator to connect to its system.

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Summit’s system would connect to ethanol plants in five states and transport their captured carbon dioxide to North Dakota for underground storage.

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The companies’ agreements with ethanol producers differed: Navigator would have charged them to transport their carbon dioxide based on how much it was transporting, whereas Summit has preferred profit-sharing agreements.

Navigator’s plans fizzled amid regulatory setbacks and potential changes to state rules. South Dakota denied its request for a permit, and Illinois regulators have been skeptical about whether the projects are appropriate if they do not connect to coal plants as state lawmakers had intended.

Illinois was an important state for Navigator’s project because it was the destination of the carbon dioxide. That state is not included in Summit’s proposal.

But Summit’s initial applications for permits in North and South Dakota were also denied. North Dakota is in the process of reconsidering Summit’s application with a revised route, and the company has said it will reapply in South Dakota.

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Legislation in Iowa

New legislation that is scheduled to be considered by an Iowa House subcommittee on Wednesday would allow lawmakers to pause governmental proceedings that include the potential for eminent domain.

Summit seeks the use of eminent domain to obtain land easements for up to a quarter of its initial route in Iowa. The new bill would also allow landowners who are the subjects of eminent domain requests to seek judicial review of the requests before the Iowa Utilities Board makes its final determinations.

Another bill in the state Senate that has not been scheduled for discussion would have broad effects for carbon dioxide pipelines. They include: a moratorium on permits for the projects until federal regulators finalize new safety rules for them; restrictions on eminent domain; counties could adopt route and safety requirements; and others. READ MORE

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Excerpt from Summit Carbon Solutions: Partnership will incorporate 17 POET plants, capture 4.7 million metric tons of CO2 -- In a major step forward for the future of agriculture and biofuels, POET and Summit Carbon Solutions (Summit) announced a groundbreaking partnership connecting the world’s largest biofuel producer with the world’s largest carbon capture and storage project. This collaboration brings together two entities—both founded upon creating new agricultural markets and supporting rural communities—to capture the value of the biogenic CO2 from the bioethanol production process.

The partnership strategically expands the carbon opportunity across the Midwest by incorporating POET’s 12 facilities in Iowa and five facilities in South Dakota into the Summit project. This addition will facilitate the capture, transportation, and permanent storage of 4.7 million metric tons of CO2 annually from the 17 POET bioprocessing plants.

“POET is excited to partner with Summit Carbon Solutions on this historic project,” said Jeff Broin, POET Founder and CEO. “As the world seeks low-carbon energy solutions, carbon capture ensures that ag-based biofuels will remain competitive for decades to come. This is a tremendous opportunity to bring value to farmers, bioethanol producers, and rural communities and counties in participating states, and I believe it will unleash even more opportunities for ag and bioprocessing in the future.”

“Today marks a historic day for American agriculture and biofuels,” said Bruce Rastetter, Founder and Executive Chairman of Summit Agricultural Group. “POET is the largest bioethanol producer in the world, and their partnership with Summit Carbon Solutions ensures that decarbonizing bioethanol will lead to exciting new market opportunities for producers, rural economies, and American energy security.”

“Our partnership with POET is creating new economic opportunities in agriculture,” said Lee Blank, CEO of Summit Carbon Solutions. “This initiative is aimed at enhancing the financial profitability of our farmers, contributing to higher land values, and ensuring a more prosperous future for farm families and communities. Our focus is on tangible benefits that directly support the backbone of our nation’s agricultural industry.”

The timeline for the addition of these plants is strategically planned. The plants in South Dakota will be included in the upcoming state application, ensuring a streamlined integration into Summit’s existing project framework. Meanwhile, for the plants in Iowa, separate applications will be filed, acknowledging the unique requirements and opportunities in each state. This structured approach allows Summit to efficiently expand our project scope while adhering to local regulations and needs.

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.

About POET

POET’s vision is to create a world in sync with nature. As the world’s largest producer of biofuel and a global leader in sustainable bioproducts, POET creates plant-based alternatives to fossil fuels that unleash the regenerative power of agriculture and cultivate opportunities for America’s farm families. Founded in 1987 and headquartered in Sioux Falls, POET operates 34 bioprocessing facilities across eight states and employs more than 2,400 team members. With a suite of bioproducts that includes high-quality animal feed, corn oil, green asphalt rejuvenator, purified alcohol, and renewable CO2, POET nurtures an unceasing commitment to innovation and advances powerful, practical solutions to some of the world’s most pressing challenges. Today, POET holds more than 100 patents worldwide and continues to break new ground in biotechnology, yielding lower-carbon, more efficient renewable energy and bioproducts. READ MORE

Excerpt from Summit Carbon Solutions: Summit incorporates 8 Valero ethanol plants, which will capture 3.1 million metric tons of CO2 annually -- In a significant development for the advancement of low-carbon fuel production, Summit Carbon Solutions (Summit) announced today that Valero, the world’s second-largest corn ethanol producer and a leader in low-carbon transportation fuels production, will be a shipper on Summit’s pipeline, as part of the largest proposed carbon capture and storage project in the world. This collaboration underscores a commitment to reliable energy, growing markets for Midwest fuel and grain, and support for rural communities.

Eight of Valero’s ethanol facilities across Iowa, Nebraska, Minnesota, and South Dakota are expected to be incorporated into Summit’s project. Participation from these eight facilities adds 1.1 billion gallons of ethanol per year and will lead to the capture of 3.1 million metric tons of CO2 annually. This will reduce the carbon intensity of ethanol production and further open access to low-carbon fuel markets.

“I am excited to welcome one of the premier energy companies in the world into our project, bringing in a new era where agricultural innovation and energy market expansion go hand in hand,” said Bruce Rastetter, Founder and Executive Chairman of Summit Agricultural Group. “By integrating Valero’s facilities into this project, we will make major strides in providing more than a billion gallons of low-carbon fuels to a marketplace hungry for the product. This project ensures the agriculture and biofuels industries will remain dynamic and competitive, meeting the needs of today while preparing for the opportunities of tomorrow.”

“I view our project, as representing a meaningful shift in agriculture to lower the carbon intensity of biofuel products,” said Summit Carbon Solutions CEO Lee Blank. “It’s about practical changes that can make a real difference: improving farm profitability, increasing land values, and offering solid support to our farm families and rural communities. This project represents a significant step forward that is grounded in the humble and hardworking spirit of agriculture.”

With the inclusion of Valero, Summit’s project now extends to 57 ethanol production facilities across the upper Midwest, from which it will capture and sequester over 16 million metric tons of CO2 per year. READ MORE