South Dakota Action Threatens Massive Carbon Dioxide Pipeline Proposed for Midwest

image

South Dakota’s governor signed a bill into law Thursday that bans the taking of private property for building carbon dioxide pipelines, a blow to a sprawling Midwest pipeline network that ethanol producers see as key for their future.

The new law muddies the waters for Summit Carbon Solutions and the planned $8.9 billion, 2,500-mile (4,023-kilometer) pipeline that already has approvals in three other states.

Republican Gov. said the eminent domain “does not kill” Summit’s proposed project, and he encouraged the company to view the bill as “an opportunity to reset.”

“I made my decision based on my own consideration of the facts, the policy arguments, legislative history, my own opinions and experience and my judgment about what is best for South Dakota,” Rhoden said.

In a statement, Summit lamented the bill signing as changing the rules in the middle of the game. The company is seeking approval from South Dakota regulators for its proposed route in the state.

“This kind of regulatory uncertainty creates real challenges — not just for our project, but for the ethanol plants in South Dakota that now face a competitive disadvantage compared to their counterparts in neighboring states,” the company said. “While this presents obstacles, our project moves forward in states that support investment and innovation, and we will have more news on that soon.”

The company’s proposed pipeline system would transport planet-warming emissions from dozens of ethanol plants in five states for burial deep

The project has generated intense who fear a taking of their land for the pipeline and the dangers of a potential

Property rights have been a passionate issue in South Dakota, where voters last year rejected that opponents said would deny local control over such projects and consolidate authority with state regulators. Supporters called it a “landowner bill of rights.”

The bill states: “Notwithstanding the provisions of any other law, a person may not exercise the right of eminent domain to acquire right-of-way for, construct, or operate a pipeline for the preponderant purpose of transporting carbon oxide.”

Eminent domain is the taking of private property with compensation to the owner.

Summit has approvals for its routes and a leg in Minnesota and underground storage in North Dakota. South Dakota regulators rejected Summit’s permit application. New proceedings are underway.

It isn’t clear how Summit would move forward with its project if it could not build in South Dakota.

Supporters see carbon capture projects such as Summit’s pipeline as a way to fight climate change and to help the ethanol industry. Opponents question carbon capture’s effectiveness at large scale and say it allows the fossil fuels industry to continue with little meaningful change.

are eligible for lucrative federal tax credits intended to encourage cleaner-burning ethanol and potentially result in corn-based ethanol being

Some opponents argue the amount of greenhouse gases sequestered through the process would make little difference and could lead farmers to grow more corn despite environmental concerns about the crop.

___

Dura reported from Bismarck, North Dakota.

Jack Dura, The Associated Press

Share This:


More News Articles

 

  • Related Posts

    US Law Enforcement Raids Offices of Houston Fuel Trader Ikon Midstream

    By , , and U.S. law enforcement executed a federal search warrant at Ikon Midstream’s Houston headquarters Company’s attorney said raid was triggered by Reuters’ October 2025 investigation into alleged…

    Oil Falls by Over 10% After Iran FM Declares Strait of Hormuz Open

    (Reuters) – Oil prices plunged by over 10% ​on Friday, extending previous losses, after Iran’s foreign ‌minister said that the passage for all commercial vessels through the Strait of Hormuz was open…

    Have You Seen?

    US Law Enforcement Raids Offices of Houston Fuel Trader Ikon Midstream

    • April 17, 2026
    US Law Enforcement Raids Offices of Houston Fuel Trader Ikon Midstream

    Labor Dispute in Australia Could Further Hinder Global LNG Supply

    • April 17, 2026
    Labor Dispute in Australia Could Further Hinder Global LNG Supply

    Oil Prices Sink 10% as Trump Announces Strait of Hormuz is Fully Open

    • April 17, 2026
    Oil Prices Sink 10% as Trump Announces Strait of Hormuz is Fully Open

    Iran Says Hormuz Strait Now Completely Open

    • April 17, 2026
    Iran Says Hormuz Strait Now Completely Open

    Podcast | UK CO2 shortages: what’s the story?

    • April 17, 2026
    Podcast | UK CO2 shortages: what’s the story?

    Laser processing lifts MOF carbon capture performance by 75%, says research team

    • April 17, 2026
    Laser processing lifts MOF carbon capture performance by 75%, says research team

    Oil Falls by Over 10% After Iran FM Declares Strait of Hormuz Open

    • April 17, 2026
    Oil Falls by Over 10% After Iran FM Declares Strait of Hormuz Open

    First Crude Cargo Clears Hormuz Since U.S. Blockade Began

    • April 17, 2026
    First Crude Cargo Clears Hormuz Since U.S. Blockade Began

    Tanker Fleet Heads to Load U.S. Oil as Middle East Supply Crumbles

    • April 17, 2026
    Tanker Fleet Heads to Load U.S. Oil as Middle East Supply Crumbles

    India Pays in Yuan for Iranian Oil Purchases Under U.S. Waiver

    • April 17, 2026
    India Pays in Yuan for Iranian Oil Purchases Under U.S. Waiver