About 80 persons attended an informational meeting Oct. 4 hosted by Summit Carbon Solutions about its proposed pipeline to move carbon dioxide (CO2) from the Louis Dreyfus ethanol plant at Grand Junction to underground geologic formations southwest of Bismarck, ND.
The informational meeting was held as a requirement of the Iowa Utilities Board. The IUB’s primary function is to regulates the rates, safety and service of utility companies. Josh Byrnes, representing the IUB at the meeting, explained that the IUB is also charged with issuing permits for infrastructure projects like the proposed CO2 pipeline.
Byrnes’ role at the meeting was to ensure that Summit Carbon Solutions met the requirements of Iowa law, as meetings in every county involved are the first step in the permitting process.
Speaking for Summit were chief operating officer Jimmy Powell and vice president of government and public affairs Jake Ketzner.
Summit Carbon Solutions plans to invest $4.5 billion in the 706-mile Midwest Carbon Express pipeline. Only a small portion – 10.9 miles – goes through Greene County. Eleven property owners are involved.
Carbon emissions from 12 Iowa ethanol plants and 19 other plants in the Midwest would be pressurized to a liquid state and then transported via the pipeline for storage one mile underground in North Dakota. The process would reduce carbon emissions from ethanol plants in half, capturing 12 million metric tons of CO2 per year. That’s equivalent to the emissions of 2.6 million cars per year.
Summit would recoup its investment via two revenue streams. First, ethanol produced with carbon capture technology has a lower carbon intensity score and sells for a higher price. Ethanol plants would share the increased profit with Summit. According to Summit’s Powell, 80 percent of the revenue for the project comes from that profit share.
The remaining 20 percent would come from a $50 federal tax credit for each ton of CO2 permanently sequestered (stored) underground.
Construction of the pipeline would require obtaining easements from the landowners involved. The pipeline would be placed 48 inches below the surface. Construction would require an easement 100 feet wide. Of that, 50 feet would be temporary during construction, and 50 feet would be a permanent easement, with Summit having access to the property at any time.
Once the pipeline is constructed, the entire 100 feet could be used as crop ground. Summit will work with landowners regarding drainage tiles, conservation structures, and future possible uses of particular locations (an intended building site, for example) before finalizing the exact route of the pipeline through a parcel.
Summit will pay 100 percent of the fair market value of the 100-ft easement, based on the Iowa Land Sale Report. Summit will assure soil is decompacted after construction, and will pay 100 percent of crop damage in the first season. Summit will pay 80 percent of any loss of yield in the second year and 60 percent in the third year.
As part of the plan, the county would be expected to hire an inspector to be present during construction and to assure soil decompaction is completed.
CO2 pipelines aren’t new – there are already 5,000 miles of CO2 pipeline in the U.S. Carbon capture technology is in use in more than 40 ethanol plants.
After informational meetings are held in all 30 counties involved, along with a 31st meeting to be held virtually, Summit will begin the permit application. That will involve a public hearing. Legal notice of the public hearing will be provided in the county’s legal publications. Written and oral comments will be taken at that time.
No questions or comments at the Oct. 4 informational meeting were entered into a public record.
Many of those who attending the session asked for clarification of the process, plans, economics, and expectations of the project.
Others had very specific concerns.
Dan Tronchetti owns property through which the pipeline would run. He said he’s worried about unintended consequences of sequestering large amounts of CO2, reducing the amount of the gas available for uses in the slaughter of livestock, extending shelf life in meat packaging, and laparoscopic surgery.
He is also worried that the CO2 being buried underground would be used for enhanced oil recovery. (Enhanced oil recovery poses environmental risks as water that comes to the surface may contain brine, toxic heavy metals and radioactive substances, threating drinking water sources and the environment in general.)
“If the Iowa Utilities Board approves this pipeline project, you’ll be remembered for being the victim of one of the greatest con jobs in history,” Tronchetti said.
The con is in Summit’s effort to appear to be fighting climate change, but “Summit Carbon plans to gather CO2 from ethanol plants in the Midwest, pump it to North Dakota, and sell it to oil companies to be used for enhanced oil recovery. That oil will then be refined to burn in cars, trucks, and other engines that produce more CO2 and other noxious gases,” Tronchetti said. “Summit Carbon will deny that they’re planning to sell CO2 to the oil companies for enhanced oil recovery. However, Bruce Rastetter did an interview with Minnesota Public Radio, and it was picked up by the Associated Press.”
Tronchetti brought to the meeting a reprint of the article. The article relates comments of Rastetter, agricultural entrepreneur, former president of the Iowa Board of Regents, and founder and CEO of Summit Agriculture Group, the parent of Summit Carbon Solutions.
According to the article, Rastetter said Summit is exploring other options, including injecting the gas into depleted oil fields to boost oil production.
Summit COO Powell said Summit Carbon Solutions “has no intent to do enhanced recovery,” and said there is no oil refining done southwest of Bismarck, the location for the carbon sequestration from the proposed pipeline. He said the company will apply for a North Dakota Class 6 permit for sequestration, not fracking.
Other persons at the meeting were concerned about the potential for Summit to use eminent domain to secure land when landowners refuse to agree to voluntary easements.
Summit VP Ketzner said that during the company’s presentation, neither he nor Powell mentioned eminent domain. The references were by Byrnes. “It’s our goal to work with landowners. We prefer t work with landowners and get voluntary consent,” Ketzner said.
When the questioner asked if Ketzner would commit Summit not to use eminent domain, Ketzner said he could not do that.
Joe Gillespie, manager of the Grand Junction Louis Dreyfus ethanol plant, spoke near the end of the meeting. He said the plant grinds 130,000 bushels of Iowa corn daily and provides income for 60 area families.
“I am very in tune with how impactful taking part of your property out of service for any time would be for you. I certainly understand your concerns,” Gillespie said. “I can only say that the only way to keep the ethanol industry viable long term is to have a net zero carbon ethanol fuel.
“General Motors has made it very clear that they want all electric cars in their line-up by 2030. For us, as a liquid fuel producer, that’s not a great story to tell.
“I want to continue to grind 130,000 bushels. This is an avenue to get to net zero… As far as other options for our CO2, it’s very difficult to find anything as lucrative as this or as impactful as this.”
