Summit Project Receives MN, ND Permits

LINCOLN, Neb. (DTN) -- Summit Carbon Solutions cleared two more regulatory hurdles on Thursday as governing boards in Minnesota and North Dakota approved important permits for the construction of segments of a 2,500-mile carbon pipeline across five states.

The Minnesota Public Utilities Commission granted a routing permit for a 28-mile segment of the pipeline in Otter Tail and Wilkin counties, that would run from an ethanol plant owned by Green Plains in Fergus Falls, Minnesota, to the North Dakota border.

With the incoming Trump administration and a Republican congress, concerns have been raised about the future of various tax incentives for carbon capture and sequestration, including the 45Q that has been in place since 2008.

Prior to the vote, Commissioner John Tuma asked for assurances from Summit that if the project falls through, landowners are not left with uncovered pipeline trenches on their properties.

"If the federal tax credits go away but you can tell me otherwise, that the project doesn't become viable and Summit no longer exists," Tuma said. "There's a possibility that some tax credits could be disappearing here, even within a matter of months. If they go away, does this project?"

A Summit representative told the commission that the 45Q tax credit is an integral part of the business operation and project plans, and if it is eliminated it would lead the company to reassess.

As part of the permit, Summit is required to have insurance as well as a decommissioning plan if the project falls through. In addition, Summit said the 28-mile segment would not require the digging of large trenches for what would be a 4.5-inch pipe about 54 inches underground.

Summit estimates construction on the pipeline segment in the two counties could begin in 2026. The company has not used eminent domain to acquire land along the 28-mile segment and said on Thursday it still is negotiating with seven landowners in Minnesota for the remaining segments of ground.

Also on Thursday, the Industrial Commission of North Dakota granted carbon storage permits for three sequestration sites in the southwest part of the state.

Those permits allow Summit to permanently store more than 350 metric tons of carbon dioxide from 57 ethanol plants in geological formations more than one mile underground.

The company said on Thursday that the approvals will allow the project to stay on track.

"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," Summit said in a press release.

"With the South Dakota PUC application also submitted Summit Carbon Solutions is on track to begin construction in early 2026 and operations in 2027."

In November, the Iowa Supreme Court sided with the company in appeal by a Hardin County landowner who has been fighting against allowing survey access to their property, https://www.dtnpf.com/….

In addition, on Nov. 5, 2024, voters in South Dakota rejected a referendum to keep a law in place that would have dictated how counties regulate carbon pipelines, https://www.dtnpf.com/….

Todd Neeley can be reached at todd.neeley@dtn.com

Follow him on social platform X @DTNeeley

(c) Copyright 2024 DTN, LLC. All rights reserved.