North Dakota regulators on Friday approved Summit Carbon Solutions’ application for a permit to run a section of its carbon dioxide pipeline through the state and store the captured greenhouse gas underground.
The unanimous vote by the three-member Public Service Commission is a critical step for Summit’s hopes to build the biggest carbon pipeline in the world and carry captured carbon dioxide from 57 Midwest ethanol plants to a North Dakota underground storage site.
The progress of the $8 billion project is being closely watched by backers of carbon capture and storage, or CCS, who say it is an important way to curb climate change, though development of the technology has been rife with problems for decades.
Ethanol producers hope to secure lower-emission fuel tax credits with carbon sequestration projects.
Commissioner Sheri Haugen-Hoffart, ahead of the vote, noted the importance of carbon capture projects to national energy goals but also acknowledged landowner concerns.
“Carbon capture technology, incentivized by federal programs, is part of a large national strategy to advance energy goals, manage carbon dioxide emissions, and it remains a tool for energy producers and users to develop and expand a marketable commodity,” Haugen-Hoffart said.
“To all the landowners, please know that state law provides protection and legal remedies regarding the use of unfair tactics in acquiring land. Your rights are safeguarded and resources are available, should you choose.”
The commission denied Summit’s first application last year arguing the company failed to prove its project would not cause harm to people or the environment. The company modified its route and appealed the decision.
“This decision is a testament to North Dakota’s commitment to fostering innovation while working closely with communities and industries,” Summit Carbon Solutions Executive Vice President Wade Boeshans said in a statement.
Iowa regulators approved Summit’s permit in June.
In South Dakota, regulators denied Summit’s first permit application last September. The company plans to apply again on Nov. 19, it told Reuters.
Minnesota regulators are expected to vote on a small segment of the pipeline that runs through the state on Dec. 12.
Nebraska, the fifth state on Summit’s route, has no statewide permit process for carbon pipelines.
(Reporting by Nichola Groom in Altadena, California and Leah Douglas in Washington Editing by Frances Kerry)