Jan. 29, 2024

Sioux Falls-based POET and Summit Carbon Solutions have announced what they’re calling a groundbreaking partnership.

In it, POET, the world’s largest biofuel producer, and Summit, the world’s largest carbon capture and storage project, would work together on a carbon capture partnership, capturing the value of the biogenic carbon dioxide 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, the two entities said in a statement.

The 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, 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.”

The timeline for the addition of these plants is strategically planned, the entities acknowledged. The partnership locations in South Dakota will be included in Summit’s upcoming state application for pipeline approval, “ensuring a streamlined integration into Summit’s existing project framework,” the statement said.

“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.”

Summit’s proposed pipeline would capture carbon dioxide from ethanol plans in South Dakota, North Dakota, Minnesota, Iowa and Nebraska and transport it for sequestration in North Dakota. But it has to be approved by state regulators, who denied it once already in part because of landowner concerns. Summit is planning to reapply with an adjusted route.

“Today marks a historic day for American agriculture and biofuels. 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,” said Bruce Rastetter, founder and executive chairman of Summit Agricultural Group. “I have known Jeff Broin for two decades, and there is no question about his passion, leadership and influence. It’s an honor to work with him again to help revolutionize biofuels and agriculture for decades to come.”

Supporters of the project say it enhances rural economies and helps mitigate climate change. Opponents have pushed back against the use of eminent domain, questioned the potential negative impacts on farmland and said the carbon captured ultimately could support the oil industry while using taxpayer dollars to fund the sequestration tax credit. South Dakota Searchlight took an in-depth look at the issue here.

“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.”