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Carbon Storage Laws Challenged In North Dakota Supreme Court

Published: November 4, 2024 |

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The North Dakota Monitor reported that The Northwest Landowners Association, along with several other organizations, has launched an appeal to the North Dakota Supreme Court, saying that existing infrastructure participation laws are unconstitutional.

As it stands the law mandates that if 60 percent of landowners across the route of a project have confirmed participation, then the remaining owners also have to participate.

This new chapter follows the dismissal of the lawsuit by a district judge and is now up for review by the highest court in the state.

States along the route of the Midwest Carbon Express CO₂ transportation and storage project being developed by Summit Carbon Solutions are taking different approaches.

While Iowa (through its utilities board) granted approval in June 2024, last week the Supreme Court of South Dakota ruled that the Midwest Carbon Express project being developed by Summit Carbon Solutions does not have the authority to use eminent domain to seize property from landowners in the state for its pipeline project.

Summit’s projects spans five states from where CO₂ would be collected and transported for storage in North Dakota, hinging on the latter’s approval.

SOUTH DAKOTA ALSO UNCONVINCED ON CARBON CAPTURE

The SD Supreme Court has denied the company’s petition for a rehearing, leaving the case in the hands of a lower court. In August, the court ruled against Summit, rejecting its argument that captured carbon dioxide should be considered a “commodity.”

The court determined that the intended use of the carbon dioxide is a crucial factor in determining whether it qualifies as a commodity.

The state is set to hold a veto referendum on CO₂ pipelines along with the presidential elections on November 5th.

The campaign in support of favorable legislation has amassed $2.7 million, while the opposing camp has raised around $200,000 according to the South Dakota Searchlight.

ETHANOL AND STATE SUPPORT FOR CARBON CAPTURE STORAGE

Project developer Summit Carbon Solutions and ethanol companies like Glacial Lakes, POET, and Gevo see carbon capture as a strong driver of demand, as airline companies (among others) are looking to decarbonize their supply with different types of sustainable aviation fuel.

They argue that this could even be a question of survival for the ethanol industry, as excess production capacity in the U.S. has been weighing on prices and other countries like Brazil have ramped up production at a lower price.

This opinion has motivated both the North Dakota Industrial Commission to move ahead with the law, as well as the state itself to partner with South Korea on a variety of energy projects including carbon capture.

Source: Carbon Herald


Summit Carbon Solutions is driving the future of agriculture by expanding economic opportunities for ethanol producers, strengthening the marketplace for Midwest-based farmers, and creating jobs. In developing the largest carbon capture and storage project in the world, the company seeks to connect industrial facilities via strategic infrastructure to store carbon dioxide safely and permanently in the Midwest United States.


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