North Dakota Grants Approval for Summit Carbon's Pipeline Permit

North Dakota regulators have approved Summit Carbon Solutions’ application for a permit to construct a portion of its carbon dioxide pipeline within the state and store the captured greenhouse gases underground. The decision, made unanimously by the three-member Public Service Commission on Friday, marks a significant milestone in Summit’s ambition to develop the world’s largest carbon pipeline. This project aims to transport carbon dioxide captured from 57 ethanol plants across the Midwest to an underground storage facility in North Dakota.

The $8 billion initiative has garnered widespread attention from supporters of carbon capture and storage (CCS) technology, who consider it a key solution for combating climate change. However, CCS has faced persistent technical and implementation challenges over the years. Ethanol producers involved in the project are particularly motivated by the prospect of qualifying for tax credits tied to low-emission fuel production through carbon sequestration efforts.

Ahead of the vote, Commissioner Sheri Haugen-Hoffart emphasized the strategic importance of carbon capture projects in advancing national energy objectives while also addressing the concerns raised by landowners. “Carbon capture technology, incentivized by federal programs, is part of a larger national strategy to manage carbon dioxide emissions, support energy goals, and create a marketable commodity for energy producers and users,” Haugen-Hoffart said. She reassured landowners that state laws provide safeguards and legal protections against unfair practices in land acquisition, underscoring the availability of resources to protect their rights.

Summit’s initial permit application was denied last year when the commission determined that the project failed to demonstrate it would not pose risks to public health or the environment. In response, the company revised its pipeline route and appealed the decision, eventually securing approval in this latest vote. Summit Carbon Solutions Executive Vice President Wade Boeshans hailed the decision, stating, “This decision reflects North Dakota’s dedication to fostering innovation while collaborating with communities and industries.”

The project’s regulatory journey has seen mixed outcomes in other states. Iowa regulators granted Summit a permit in June, while South Dakota denied its initial application in September, prompting the company to reapply with a revised proposal on November 19, according to the media reports. In Minnesota, state regulators are scheduled to vote on December 12 regarding a smaller segment of the pipeline. Meanwhile, Nebraska, another state along the pipeline’s route, does not have a statewide permit process for carbon pipelines.

As Summit Carbon Solutions navigates these regulatory hurdles, the project remains a focal point in the broader conversation about leveraging CCS technology to meet climate and energy goals.