POET joins CO2 pipeline project
Sioux Falls biofuel giant partnering with Summit in 2,000-mile, $5.5 billion line
POET, a biofuel giant headquartered in Sioux Falls, is officially partnering with Iowa-based Summit Carbon Solutions to join what is expected to be the largest carbon dioxide sequestration line in the U.S. ● POET announced Monday the biofuel producer is joining Summit Carbon’s proposed Midwest Carbon Express project, a 2,000-mile, $5.5 billion pipeline system slated to pull hazardous liquid carbon dioxide from bioethanol facilities in eastern South Dakota, Iowa, Minnesota, Nebraska and North Dakota. The byproduct would travel to a site north of Bismarck, North Dakota for underground sequestration.
“Our partnership with POET is creating new economic opportunities in agriculture,” stated Lee Blank, Summit Carbon CEO, in a joint news release Monday. “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.”
According to the companies’ joint announcement, POET’s five South Dakota bioprocessing plants and 12 Iowa plants will join Summit Carbon’s pipeline project, equating to 4.7 million
“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.”
Jeff Broin
POET founder and CEO
metric tons of CO2 sequestered annually.
“POET is excited to partner with Summit Carbon Solutions on this historic project,” stated Jeff Broin, POET founder and CEO, in the joint release. “As the world seeks low-carbon energy solutions, carbon capture ensures that agbased 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.”
POET was previously aligned with Navigator CO2 Ventures, a Nebraska pipeline company which also planned to build a $3.5 billion multi-state sequestration line across South Dakota and other Midwest states. The Sioux Falls biofuel maker signed with Summit Carbon’s rival in July 2022 to add 18 bioethanol plants to the 1,300-mile project.
However, Navigator’s Heartland Greenway project was shuttered in October after the company’s permit application was denied by the South Dakota Public Utilities Commission the month prior. The company cited “the unpredictable nature of the regulatory and government processes involved, particularly in South Dakota and Iowa” as the reason for the project’s cancelation.
In previous Argus Leader reporting, Summit Carbon spokesperson Sabrina Zenor said in the days after Navigator’s pipeline plans crumbled that the company was “well positioned to add additional plants and communities to our project footprint,” including those plants under POET.
Summit Carbon’s pipeline also suffered the same blow after its permit application was also rejected by state regulators. Bruce Rastetter, CEO of Summit Ag Group, Summit Carbon’s parent company, later told Bloomberg in October the pipeline project’s first day of operations would be delayed until early 2026.
The joint announcement states POET’s South Dakota plants will be added to Summit Carbon’s second permit application, while separate applications will be filed for the Iowa facilities.
Summit Carbon’s pipeline remains in the crosshairs of property rights advocates, as the project’s route runs through land owned by rural Midwesterners and farmers.
Some landowners oppose the project due to safety concerns associated with hazardous liquid carbon dioxide pipe transmission.
Multiple South Dakota counties have taken steps to keep Summit Carbon’s pipeline away from nearby communities. Some county commissions have adopted setback ordinances, which establish the minimum distance between the centerline of a pipeline and nearby residences and buildings.
The actual distances varying between the type of zoning area and on a county-to-county basis. Brown County established a 1,500-foot setback in April, while Minnehaha County reduced a proposed setback of 750 feet to a final 330foot buffer in June.
Eminent domain is also a key issue in the ongoing pipeline debate, as some landowners contest the company’s claim that it is vested with the authority to take private land for its project.
In April, Summit Carbon, holding itself out to be a common carrier with eminent domain privileges, filed more than 80 condemnation proceedings against landowners in South Dakota, as well as another 80 in the following months, though the company vowed to dismiss all lawsuits.
In South Dakota, legislators are set to debate changes to the state’s pipeline laws. Multiple bills have already been introduced to amend various aspects of statutes related to carbon dioxide pipelines.
One draft bill written by Sen. Casey Crabtree, R-Madison, is expected to include changes to the state’s setback regulations, though a final version has yet to be introduced to the legislature.
On Jan. 19, the House Commerce and Energy Committee killed House Bill 1079, a piece of legislation that would have required pipeline and utility companies to obtain written consent from South Dakota property owners to access their lands for siting purposes.
This amendment would have stymied attempts by pipeline and utility companies to survey private property if the property owners refused to let them access their land. This would have had possible ramifications on projects requiring a PUC permit, as land survey data is often crucial to obtaining said permit.