North Dakota Grants Key Approval for Midwest CO2 Pipeline Storage (Insurance Journal)

North Dakota Grants Key Approval for Midwest CO2 Pipeline Storage

Thursday, December 19th, 2024 Legislation & Regulation Property Risk Management Technology

North Dakota has approved underground storage permits for a proposed CO2 pipeline by Summit Carbon Solutions, marking a significant step forward in a contentious $8 billion project. The Industrial Commission, led by Governor Doug Burgum, voted unanimously for permits at three storage sites in the state. Summit plans to transport CO2 emissions from 57 ethanol plants across the Midwest for deep underground storage, beginning operations in 2027.

While the project has received approvals in North Dakota, Iowa, and Minnesota, construction remains stalled due to legal battles and landowner opposition. Many landowners object to the use of eminent domain for the pipeline and fear potential risks, such as gas leaks. Environmental groups also question the pipeline’s overall benefits, despite claims of minimal environmental impact by regulators.

Summit touts the project as a win for farmers, ethanol producers, and the environment, aligning with federal tax credit incentives for carbon capture. The company aims to store up to 18 million metric tons of CO2 annually, utilizing rock formations about a mile underground. Legal challenges are expected to continue as the pipeline progresses through the Midwest.

Governor Burgum, an advocate for carbon neutrality, highlighted North Dakota’s geological suitability for carbon storage, calling it a "geologic jackpot." Meanwhile, Summit faces lawsuits over property rights and state-level permit denials in South Dakota.


External References & Further Reading
https://www.insurancejournal.com/news/midwest/2024/12/19/804817.htm
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