Summit Carbon Solutions CEO Lee Blank was blunt in his assessment of where things stand on the development of the Midwest Carbon Express CO2 pipeline, during the National Ethanol Conference in San Diego on Tuesday.
Although regulatory disputes and opposition from environmental groups recently took down Summit's competition in Navigator CO2, Blank said his company's own ongoing battles have stiffened resolve to build the carbon pipeline across Iowa, South Dakota, North Dakota, Minnesota and Nebraska.
Blank laid out where the company stands on permitting battles in each state, as well as the nature of the continued opposition to the pipeline project.
"If you see the project and you support the project, it's no time to be meek and it's no time to be mild," Blank sold ethanol producers and farmers during a panel discussion on Tuesday.
"Now is the time because we're right up against these permits. We're right up against legislation and now is the time that if we want this project to be completed, then we believe it's really good for the industry. And I think we all know now is the time. This will not happen again. No one will take this on to try and take these hurdles on this again and spend a lot of money, hit these political environments, utility commissions that have made it very, very difficult. Now is the time."
The project is becoming an easier sell to farmer landowners and others in rural America, he said.
The ethanol industry is expected to play a large role as a feedstock provider in the production of sustainable aviation fuel (SAF), so long as the ethanol industry can improve its carbon intensity score. That's why carbon capture and storage is important.
There is potential for another wave of economic expansion in rural communities similar to the early days of the Renewable Fuel Standard starting in 2005 if ethanol producers can become part of the SAF expansion.
Blank said that opportunity is why Summit continues to press forward.
"It really has just hardened our attitude towards accomplishing this project," he said.
"I come from agriculture and so this is important to me as well. I think one of the reasons we're being successful is we're a partnership model and we're also an agricultural company delivering an infrastructure project and we start with that."
REGULATORY OBSTACLES
Blank said the company plans to begin construction in early 2025 with operations launching in early 2026. If completed, the pipeline would connect to 51 ethanol plants and provide a lift to the ethanol industry's prospects of being a part of sustainable aviation fuel production.
In Iowa, Blank said he anticipates a decision coming from the Iowa Utilities Board on the company's permit application "sometime this first quarter." Summit has acquired about 75% of the right of way needed in the state.
After the North Dakota Public Service Commission (PSC) denied Summit's permit application, the company completed reroutes in three counties.
The North Dakota PSC granted a petition for reconsideration and determined that state law preempts county laws. Blank said Summit is waiting for new hearings to be set and has acquired about 80% of needed rights of ways in the state.
In South Dakota, the state's public utilities commission rejected Summit's permit application last fall. The PUC said back in September the proposed pipeline route had conflicts with county guidelines on setbacks and other issues.
Blank said the company continues to work with officials in various counties and has acquired about 75% of the land needed in South Dakota.
In Nebraska this week, the Stanton County Board denied a conditional use permit request from Summit.
According to a story in the Des Moines Register, county officials have asked for additional information on potential health risks and on any potential foreign ownership of the project. In addition, the county is seeking more information on possible alternative routes.
Blank said this week about 90% of needed land acquisitions have been completed in Stanton County.
Also this week, the Dakota County, Nebraska, Planning and Zoning Commission tabled a decision on a conditional use permit application by Summit.
In Minnesota, the company has completed a series of environmental-impact statement meetings with the state and permit hearings are set for May 2024. Blank said about 89% of needed rights of ways have been signed.
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