Summit carbon capture pipeline approved for eminent domain in Iowa, with conditions

A proposed CO2 pipeline project spanning five states has moved one step closer to reality.

The Iowa Utilities Board unanimously approved Summit Carbon Solutions’ application for a permit to construct, operate and maintain a carbon sequestration pipeline through 29 counties in the state. The IUB said Summit met the requirements of Iowa Code and that the “public benefits of the project outweigh the private and public costs.”

In a statement, Summit called the approval a “significant milestone” for the ethanol industry. A total of 57 ethanol plants, including 30 in Iowa, plan to connect with the pipeline, which will carry away carbon dioxide emissions to be sequestered underground in North Dakota.

Biofuels producers view the project as a path into markets for low-carbon fuels such as sustainable aviation fuel.

“Whether you think it’s smart or silly, the world’s largest airlines want to decarbonize their fuel,” Iowa Renewable Fuels Executive Director Monte Shaw said in a statement. “Carbon capture and sequestration gets Iowa ethanol into that market, potentially providing a generational boost to Iowa’s economy.”

Summit will have the right of eminent domain to build the pipeline on property where landowners have not signed on with the plan. Opponents said they will continue their efforts in Iowa and other states to delay or block the project.

Sherri Webb’s family owns a farm along the proposed pipeline route. During a press conference held by the Iowa Chapter of the Sierra Club, Webb said she won’t accept Summit taking her land through eminent domain.

“I hope that the Iowa landowners now understand that absolutely none of their land is safe from being taken,” Webb said. “Will we give up? No. We will appeal, and we will never give up.”

Sierra Club attorney Wally Taylor said the pipeline still faces several hurdles, and the IUB’s decision does not guarantee the Summit pipeline will be built.

Before issuing a final permit, the IUB requires Summit to acquire a $100 million insurance policy to cover any damage caused by construction and operation of the pipeline.

The board also ordered that construction cannot start until some final permit filings are reviewed by the IUB and pipeline permits are approved in both North Dakota and South Dakota.

An attorney for several landowners along the proposed route said he’s not surprised by the IUB’s decision to grant a permit for the project. Brian Jorde said the three members of the board were “hand-picked” to make such a decision. IUB board members are appointed by the governor and confirmed by the Iowa Senate.

Construction on the pipeline is still a long way off, Jorde said, and landowners will exhaust all options in trying to stop it.

“The condition that prohibits commencement of construction until all approvals across the footprint are met is, in my view, significant because in South Dakota, Summit doesn’t even have an application on file,” Jorde said.

Summit was denied a pipeline permit in 2023 by the South Dakota Public Utilities Commission. Summit has said it will file its permit application in South Dakota in early July. Jorde said it should take at least a year for the commission to approve another application.

The North Dakota Public Service Commission also denied Summit’s pipeline route permit in 2023. The Ames-based company made some changes and reapplied.

Summit has said the project would be the largest of its kind in the U.S. with 2,500 miles of pipe across five states.