South Dakota Governor Larry Rhoden has signed a bill into law that prohibits the use of eminent domain for building carbon dioxide pipelines. This decision poses a significant challenge to Summit Carbon Solutions’ planned $8.9 billion pipeline project, which aims to transport carbon dioxide from ethanol plants across five Midwestern states to a storage site in North Dakota.
The pipeline, spanning 2,500 miles, has already received approvals in Iowa, Minnesota, and North Dakota. However, Governor Rhoden’s move complicates matters for Summit, as it restricts the company’s ability to acquire land in South Dakota. Despite this, Rhoden encouraged Summit to view the law as an opportunity to reassess its approach.
Summit expressed disappointment, stating that South Dakota has “changed the rules mid-process.” The company is currently seeking approval for its proposed route in the state but faces opposition from landowners concerned about property rights and potential pipeline leaks.
Supporters of the pipeline see it as a crucial step in reducing greenhouse gas emissions and aiding the ethanol industry. However, opponents question its effectiveness and argue that it allows the fossil fuel industry to continue without significant changes.
The new law has sparked debate, with some arguing it creates unnecessary obstacles for Midwest farmers seeking to access new markets for ultra-low carbon ethanol. Despite these challenges, Summit plans to continue its project in states that support innovation.
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