South Dakota set to pull pipeline law in blow for US ethanol
A proposed $8.9 billion carbon-capture pipeline in the U.S. Corn Belt has faced a setback in South Dakota, where voters approved the repeal of a law that critics said facilitated its approval. Summit Carbon Solutions, the project’s backer, plans to reapply for a state permit despite the opposition, emphasizing its focus on working with landowners and supporting ethanol and agriculture.
CHICAGO: A proposed US$8.9bil carbon-capture pipeline that has polarised the US Corn Belt has hit another setback in the critical state of South Dakota.
At least 60% of South Dakotans voted to repeal a law critics said was meant to ease approval of the project by Summit Carbon Solutions, according to preliminary results of a statewide ballot done with Tuesday’s election.
The project is the last high-profile carbon pipeline proposal still standing after rivals with similar visions went bust amid opposition from landowners in various Mid-western states.
“This is a mandate from the voters that South Dakota is not for sale,” Republican state lawmaker Karla Lems, who voted against the law earlier this year, said in an interview. “They understand that our property rights are sacred and the legislature got it wrong. Now we move forward to enact much-needed protections.”
Summit Carbon said it isn’t deterred by the ballot results and plans to reapply for a state permit on Nov 19.
“Our focus continues to be on working with landowners and ensuring the long-term viability of ethanol and agriculture in the state,” the Iowa-based firm said in a statement. “Projects like ours have successfully navigated South Dakota’s existing regulatory landscape in the past.”
The project, whose backers include energy billionaire Harold Hamm, aims to shrink the environmental impacts of ethanol production by capturing emissions from plants in South Dakota, North Dakota, Iowa, Minnesota and Nebraska
The carbon dioxide would then be stored in North Dakota. Roughly a fifth of a proposed 2,500-mile pipeline would run through South Dakota, according to Summit.
Summit has faced a barrage of setbacks since the project was announced in 2021, with the pipeline delayed by at least two years and estimated costs more than doubling.
South Dakota last year rejected Summit Carbon’s plan to capture emissions from corn ethanol production because the planned route violated county ordinances, such as distances between the pipeline and homes.
The law on Tuesday’s ballot has been dubbed a “landowner bill of rights” by backers, who claim it offers valuable protection for residents who end up in negotiations for access to their property.
Opponents call it a “pipeline bill of rights,” arguing that the measure allows for easier approval. — Bloomberg
Source Link : https://www.thestar.com.my/business/business-news/2024/11/08/south-dakota-set-to-pull-pipeline-law-in-blow-for-us-ethanol
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