Monday, March 10, 2025

New South Dakota Law Prohibits Use of Eminent Domain for CO2 Pipelines

South Dakota’s governor has signed a bill prohibiting use of eminent domain for pipelines carrying carbon dioxide, throwing a wrench into Summit Carbon Solutions' project to build a pipeline carrying liquefied carbon dioxide to a sequestration site in North Dakota. The new law injects uncertainty into Summit’s plans, which include 2,500 miles of pipeline through Iowa, Nebraska, Minnesota and the Dakotas that would carry liquefied carbon dioxide from 57 ethanol plants.  The project aims to lower the carbon intensity scores of participating ethanol plants, which could help them qualify for federal and state incentives. A federal tax incentive offers $85/ton for permanently stored CO2.