A sign reading “Property rights matter, no CO2" stands near Strasburg, N.D., Jan. 11, 2024. Iowa public utility regulators on Tuesday, June 25, 2024 gave approval for a controversial carbon dioxide pipeline proposed for the Midwest, but the company will has many hoops to jump through before it can begin construction. (AP Photo/Jack Dura)
Opponents of Summit Carbon Solutions’ proposed carbon dioxide pipeline gather at the state Capitol in Des Moines, Iowa, on Feb. 8, 2024. The Iowa Utilities Board on Tuesday, June 25, 2024, approved Summit’s application to build its pipeline, but the company still has many hoops to jump through before it gets its permit and can begin construction. (AP Photo/Hannah Fingerhut)
BY JACK DURA
June 25, 2024
Iowa public utility regulators on Tuesday approved a controversial carbon dioxide pipeline for transporting emissions of the climate-warming greenhouse gas for storage underground in a win for Summit Carbon Solutions’ project after setbacks in other states and opposition from landowners around the Midwest.
The company still has many hoops to jump through before it can begin building in Iowa, including gaining other states’ approval.
The $5.5 billion, 2,500-mile (4,023.36 kilometers) pipeline network would carry planet-warming CO2 emissions, liquefied under pressure, from more than 50 ethanol plants in Iowa, Minnesota, Nebraska, North Dakota and South Dakota to be stored deep underground in central North Dakota.
Farmers and the ethanol industry see the pipeline as a way to qualify for federal tax breaks they see as key for growing a market for a cleaner-burning aviation fuel. Corn is among the top two crops in the Midwest, and Iowa is the leader in corn and ethanol production.
“Whether you think it’s smart or silly, the world’s largest airlines want to decarbonize their fuel. Carbon capture and sequestration gets Iowa ethanol into that market, potentially providing a generational boost to Iowa’s economy,” Iowa Renewable Fuels Association Executive Director Monte Shaw said in a statement
Summit CEO Lee Blank welcomed the decision in a statement.
The project’s opponents, including many landowners, fear their land will be taken for the pipeline and that a potential pipeline rupture could release dangerous CO2 gas. A coalition opposing Summit’s project vowed to fight the Iowa board’s decision
Landowner attorney Brian Jorde said the decision was expected, with a lengthy process for Summit still ahead, such as applying in South Dakota.
“It’s just one small thing in a maze, in a track-and-field event full of hurdles that they have to get over,” Jorde said.
The Iowa Utilities Board approved Summit’s January 2022 application for a permit to build and operate the pipeline. But before the board issues the permit, the company must file proof of an insurance policy of at least $100 million to pay for any damages resulting from the pipeline project. Summit must provide proof of the insurance annually.
The company also can’t start construction until it has approvals from North Dakota and South Dakota, including for routes in both states and underground storage in North Dakota. Summit also needs approvals from Minnesota and in Nebraska before it can begin to build lines out to ethanol plants in those states.
The Iowa regulators’ decision comes after hearings last year and setbacks in other states. North Dakota regulators denied a siting permit in August, but later agreed to reconsider. Hearings on the underground storage proposal were held earlier this month.
South Dakota regulators denied Summit’s application in September; Summit said it plans to file again in early July. In Nebraska, where Summit must work with individual counties, at least one county has denied a permit.
The Iowa panel also granted the company the right of eminent domain over numerous parcels of land, but only after the permit is issued. The extent of Summit’s eminent domain powers wasn’t immediately clear from the 500-page order. The board denied use of some parcels of land; others require modifications to the route. Eminent domain is the taking of private land for public use with compensation for landowners.
The order also includes numerous other requirements of Summit, such as monthly construction reports and grants for equipment for cities and counties to respond to incidents.
Supporters view carbon capture projects such as Summit’s as a combatant of climate change, with new federal tax incentives and billions from Congress for such carbon capture efforts. Opponents question the technology’s effectiveness at scale and the need for potentially huge investments over cheaper renewable energy sources.
Companies behind two other CO2 pipeline projects proposed in the Midwest have canceled or shelved their plans. From the renewable fuels industry perspective, blows to projects such as Summit’s could put at risk the huge potential of a new aviation fuel market the industry believes would continue for many years.
North Dakota Republican Gov. Doug Burgum supports the pipeline. He has hailed North Dakota’s underground rock formations as a “geologic jackpot” for CO2 storage potential. In 2021, he set a goal for North Dakota to become carbon neutral by 2030. He isn’t seeking reelection this year, and is a top choice to be former President Donald Trump’s running mate.
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Dura reported from Bismarck, North Dakota.
Takeaways: A possible Trump VP pick grapples with supporting a CO2 pipeline
Republican North Dakota Governor Doug Burgum listens as former President Donald Trump, in foreground, talks to reporters at Manhattan criminal court, May 14, 2024, in New York. Burgum is one of Trump’s most visible and vocal backers, sprinting around the country to drum up support while auditioning to be his running mate. Meanwhile, Burgum is wrestling with a $5.5 billion carbon dioxide pipeline project in his home state. The venture has left him straddling an awkward political divide as Trump and President Joe Biden offer voters starkly different visions of America.
Republican North Dakota Governor Doug Burgum listens as former President Donald Trump, in foreground, talks to reporters at Manhattan criminal court, May 14, 2024, in New York. Burgum is one of Trump’s most visible and vocal backers, sprinting around the country to drum up support while auditioning to be his running mate. Meanwhile, Burgum is wrestling with a $5.5 billion carbon dioxide pipeline project in his home state. The venture has left him straddling an awkward political divide as Trump and President Joe Biden offer voters starkly different visions of America.
(Justin Lane/Pool Photo via AP, File)
BY JACK DURA AND RICHARD LARDNER
June 24, 2024
BISMARCK, N.D. (AP) — North Dakota Gov. Doug Burgum has emerged as a serious contender to be Donald Trump’s running mate. He’s one of the president’s most loyal and vocal backers and brings executive experience, business savvy and close connections to deep-pocketed energy industry CEOs. Trump wants their money to help finance his third run for the White House.
But back home, far from the glare of the campaign trail, the two-term governor is wrestling with a $5.5 billion carbon dioxide pipeline project that has split his state and left him straddling an awkward political divide as Trump and President Joe Biden offer voters starkly different visions of how to tackle — or ignore — climate change.
A pipeline champion
Burgum is championing the CO2 pipeline, which is being financed by hundreds of investors and will be built by Summit Carbon Solutions of Ames, Iowa. The project would gather planet-warming CO2 from ethanol plants across the Midwest and permanently deposit the potentially harmful gas a mile underground in west central North Dakota.
The CO2 pipeline aligns with Biden’s push to address climate change, a position that could put Burgum at odds with Trump.
A potential Trump VP pick backs a controversial CO2 pipeline favored by the Biden White House
In backing the pipeline, Burgum is navigating the tricky politics of land ownership in deep-red North Dakota and of climate change inside the GOP.
What to know about the 2024 Election
Democracy: American democracy has overcome big stress tests since 2020. More challenges lie ahead in 2024.
AP’s Role: The Associated Press is the most trusted source of information on election night, with a history of accuracy dating to 1848. Learn more.
Read the latest: Follow AP’s complete coverage of this year’s election.
While Burgum has outlined plans to make North Dakota carbon neutral by 2030, he’s steered clear of describing the pipeline or other carbon capture initiatives as environmentally friendly. Instead, he touts them as a lucrative business opportunity for North Dakota that might ultimately assist the fossil fuel industry.
“This has nothing to do with climate change,” Burgum said in early March on a North Dakota radio program. “This has to do with markets.”
Kurt Swenson and his family own or have an interest in 1,750 acres at or near the proposed storage site. At a public hearing earlier this month on Summit’s permit application, Swenson said he had a warning for anyone who attempts to take his land without his consent.
“It seems like everybody wants what isn’t theirs,” Swenson said. “You’re going to end up taking it from my cold, dead hands. And you’re going to see how that works out for you.”
Summit said it has signed easement deals with landowners along 82% of the pipeline’s route in North Dakota and obtained 92% of the lease agreements needed at the storage site. The company added that the project also is supported by state lawmakers and emergency managers.
Close ties to the oil and gas industry
Oil and gas interests have donated nearly $8 million to Trump’s 2024 presidential campaign, according to the political money website Open Secrets.
ADVERTISEMENT
Burgum, with his close ties to his state’s dominant industry, is the type of running mate who could help boost such donations.
If Burgum isn’t the GOP’s vice-presidential nominee and doesn’t land a job in a second Trump administration, he can return to North Dakota to finish out his last term, with key decisions looming for the pipeline.
___
Lardner reported from Washington.
BY JACK DURA AND RICHARD LARDNER
June 24, 2024
BISMARCK, N.D. (AP) — North Dakota Gov. Doug Burgum has emerged as a serious contender to be Donald Trump’s running mate. He’s one of the president’s most loyal and vocal backers and brings executive experience, business savvy and close connections to deep-pocketed energy industry CEOs. Trump wants their money to help finance his third run for the White House.
But back home, far from the glare of the campaign trail, the two-term governor is wrestling with a $5.5 billion carbon dioxide pipeline project that has split his state and left him straddling an awkward political divide as Trump and President Joe Biden offer voters starkly different visions of how to tackle — or ignore — climate change.
A pipeline champion
Burgum is championing the CO2 pipeline, which is being financed by hundreds of investors and will be built by Summit Carbon Solutions of Ames, Iowa. The project would gather planet-warming CO2 from ethanol plants across the Midwest and permanently deposit the potentially harmful gas a mile underground in west central North Dakota.
The CO2 pipeline aligns with Biden’s push to address climate change, a position that could put Burgum at odds with Trump.
A potential Trump VP pick backs a controversial CO2 pipeline favored by the Biden White House
In backing the pipeline, Burgum is navigating the tricky politics of land ownership in deep-red North Dakota and of climate change inside the GOP.
What to know about the 2024 Election
Democracy: American democracy has overcome big stress tests since 2020. More challenges lie ahead in 2024.
AP’s Role: The Associated Press is the most trusted source of information on election night, with a history of accuracy dating to 1848. Learn more.
Read the latest: Follow AP’s complete coverage of this year’s election.
While Burgum has outlined plans to make North Dakota carbon neutral by 2030, he’s steered clear of describing the pipeline or other carbon capture initiatives as environmentally friendly. Instead, he touts them as a lucrative business opportunity for North Dakota that might ultimately assist the fossil fuel industry.
“This has nothing to do with climate change,” Burgum said in early March on a North Dakota radio program. “This has to do with markets.”
Trouble at home
The blowback in North Dakota to the Summit project has been intense with Burgum caught in the crossfire. There are fears a pipeline rupture would unleash a lethal cloud of CO2. Landowners worry their property values will plummet if the pipeline passes under their land. And they’re outraged over what they allege are hardball tactics employed by Summit to secure the easements it needs for the massive project.
The blowback in North Dakota to the Summit project has been intense with Burgum caught in the crossfire. There are fears a pipeline rupture would unleash a lethal cloud of CO2. Landowners worry their property values will plummet if the pipeline passes under their land. And they’re outraged over what they allege are hardball tactics employed by Summit to secure the easements it needs for the massive project.
Kurt Swenson and his family own or have an interest in 1,750 acres at or near the proposed storage site. At a public hearing earlier this month on Summit’s permit application, Swenson said he had a warning for anyone who attempts to take his land without his consent.
“It seems like everybody wants what isn’t theirs,” Swenson said. “You’re going to end up taking it from my cold, dead hands. And you’re going to see how that works out for you.”
Summit said it has signed easement deals with landowners along 82% of the pipeline’s route in North Dakota and obtained 92% of the lease agreements needed at the storage site. The company added that the project also is supported by state lawmakers and emergency managers.
Close ties to the oil and gas industry
Oil and gas interests have donated nearly $8 million to Trump’s 2024 presidential campaign, according to the political money website Open Secrets.
ADVERTISEMENT
Burgum, with his close ties to his state’s dominant industry, is the type of running mate who could help boost such donations.
If Burgum isn’t the GOP’s vice-presidential nominee and doesn’t land a job in a second Trump administration, he can return to North Dakota to finish out his last term, with key decisions looming for the pipeline.
___
Lardner reported from Washington.
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