Nov. 15, 2022

Summit Carbon Solutions has secured easement agreements for more than half of its proposed pipeline route in South Dakota.

Partnering with 400 landowners across South Dakota to sign 650 easement agreements, the company “continues to make significant progress in advancing its carbon capture, transportation and storage project,” it said in a statement.

The $4.5 billion investment remains on track to begin construction next year and move into operations in 2024.

“Summit Carbon Solutions and our seven ethanol plant partners in South Dakota are incredibly pleased that landowners continue to embrace our project and support our efforts to maintain a strong, competitive ethanol industry,” said Summit Carbon Solutions CEO Lee Blank. “Securing easement agreements for a majority of the proposed pipeline route in South Dakota represents a significant step in advancing our project and driving growth in our ag economy long term.”

Summit Carbon Solutions is partnering with 32 ethanol plants across the Midwest, including Dakota Ethanol in Wentworth, Redfield Energy in Redfield, Ringneck Energy in Onida and the Glacial Lakes Energy plants in Aberdeen, Huron, Mina and Watertown.

The company said its $800 million investment in South Dakota will enable partner ethanol producers to sell their product at a premium in the growing number of markets — both states and countries — that have adopted low carbon fuel standards.

“Access to these markets is critical to the long-term viability of the ethanol industry that today purchases more than 60 percent of the corn grown in South Dakota and remains a key driver of commodity prices and land values,” the company said.

McCook County landowners have signed all necessary easements for Summit, followed by 88 percent in Kingsbury County, 86 percent in Clark County, 78 percent in Beadle County and 75 percent  in Lake County. In each county where the pipeline is located, Summit said it will invest an average of $44 million during construction and pay an average of $650,000 in new property taxes every year once the system is operational.