Midwest carbon-capture pipeline could be delayed after eminent domain ban in South Dakota

SIOUX FALLS, S.D. – The corporate behind an $8.9 billion carbon-capture pipeline proposed for 5 Midwestern states mentioned Wednesday it desires to indefinitely delay its plans after South Dakota passed a law limiting its means to amass land for the challenge.

However even because it filed a motion to droop its pipeline allow utility timeline with the South Dakota Public Utilities Fee, the Iowa-based Summit Carbon Options mentioned it stays dedicated to the pipeline.

Summit legal professional Brett Koenecke mentioned the motion was wanted as a result of the laws accredited by South Dakota lawmakers and shortly signed into regulation by the governor modified the corporate’s means to survey the route.

“The ensuing delays in acquiring the surveys imply that the timelines concerned in Fee motion on this utility are unrealistic,” Koenecke wrote within the movement. If the fee approves the movement, they’ll set a brand new deadline for the allow utility.

The proposed 2,500-mile pipeline would carry carbon emissions from ethanol crops in Iowa, Minnesota, Nebraska, North Dakota and South Dakota to be saved underground completely in North Dakota. By decreasing carbon emissions from the crops, the pipeline would decrease their carbon depth scores and make them extra aggressive within the renewable fuels market.

The challenge had approvals in Iowa, Minnesota and North Dakota. However in South Dakota, a brand new regulation banned the usage of eminent area — the federal government seizure of personal property with compensation — particularly for carbon-capture tasks.

The eminent area invoice sponsor Republican Rep. Karla Lems mentioned Summit is “attempting to get their toes again underneath them” after the eminent area ban.

Summit’s transfer was “usually excellent news” for Frank James, director of advocacy group Dakota Rural Motion, which opposed permitting eminent area for the challenge.

“It means the work that we did on the legislature with our allies was impactful,” he mentioned. “It clearly exhibits the residents of South Dakota actually query these false options to local weather change.”

Tad Hepner, vice chairman of technique and innovation on the Renewable Fuels Affiliation, disagreed, saying stopping Summit in South Dakota would put ethanol producers within the state at a aggressive drawback to out-of-state crops related to the pipeline.

“We do not wish to see haves and have-nots,” he mentioned. “We would like as many ethanol producers to have the ability to sequester their CO2 as attainable.”

North Dakota Gov. Kelly Armstrong mentioned Tuesday he doesn’t understand how Summit will get its pipeline into North Dakota given South Dakota’s eminent area ban.

Armstrong mentioned he’s involved as a result of officers and trade leaders had been hopeful of ultimately utilizing carbon dioxide to extract oil. North Dakota is the No. 3 oil-producing state within the nation, producing about 1.2 million barrels of oil monthly.

Summit has already spent greater than $1 billion on the challenge, Summit spokesperson Sabrina Zenor mentioned. Regardless of the South Dakota suspension, “all choices” are nonetheless on the desk, the corporate mentioned.

“Summit Carbon Options stays dedicated to working by way of this course of and advancing the challenge in states that help power and innovation,” the corporate mentioned in an announcement.

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Dura reported from Bismarck, North Dakota.