The Minnesota Public Utilities Commission unanimously approved a long-awaited permit for Summit Carbon Solutions on Thursday. This permit allows the company to construct a 28-mile segment of its planned 2,500-mile carbon capture pipeline network across the Midwest. The Minnesota section will run from an ethanol plant in Fergus Falls to the North Dakota border, utilizing 4.5-inch diameter pipe buried 54 inches underground. Summit estimates construction could begin as early as 2026, pending finalization of right-of-way agreements with seven landowners. The pipeline will transport pressurized carbon dioxide to injection wells in North Dakota for permanent underground storage, aiming to prevent greenhouse gas emissions.
Commissioners expressed concerns about the project’s long-term viability, citing its heavy reliance on federal carbon tax credits potentially revoked by a future Congress. Commissioner John Tuma described Summit as a startup company whose model is “built on tax credits that are somewhat tenuous.” A company representative acknowledged that the loss of these credits would necessitate a reassessment of the project’s feasibility. Despite these concerns, the permit was granted.
Summit CEO Lee Blank expressed gratitude for the PUC’s review, emphasizing the project’s balance of economic benefits and environmental stewardship. Conversely, the rural advocacy group CURE, opposing the pipeline, voiced disappointment with the decision, citing remaining questions about the project’s implementation and impact.
Summit, founded in 2021, aims to leverage federal 45Q tax credits significantly expanded by the 2022 Inflation Reduction Act. This aligns with President Biden’s energy policy, potentially yielding over $18 billion in tax credits over twelve years if the project reaches its envisioned scale. The commission deemed the 394-page environmental impact statement, completed in July 2024, sufficient to justify permit approval.
Opponents argue that the captured carbon could be used for enhanced oil recovery, negating any decarbonization benefits. The project’s approval contrasts with the cancellation of the Heartland Greenway pipeline last year due to regulatory hurdles. The article concludes with author and publication information.