Another South Dakota ethanol plant signs on to Summit Carbon pipeline
NuGen Energy has joined 32 ethanol plants in five states on the project
AMES, Iowa — Another ethanol plant in South Dakota has signed on to the Summit Carbon Solutions carbon capture pipeline project.
Summit announced on Thursday, May 25, that NuGen Energy in southeast South Dakota has joined 32 ethanol plants in five states on the project.
NuGen Energy began operations in 2008 and has a production capacity of 150 million gallons per year, Summit said in a news release.
“We are delighted to partner with Summit on this important carbon capture storage project,” Zafar Rizvi, CEO of Rex American Resources, said in a news release. “Strategically, the location of our NuGen facility in Marion, South Dakota, and our goals to reduce greenhouse gas emissions perfectly align with Summit Carbon Solutions. We look forward to working with Summit to achieve our sustainability targets and making a positive impact on the environment.”
There are seven other existing ethanol plants in South Dakota signed on to the 2,000-mile project that intends to transport liquid carbon dioxide to an underground storage area in North Dakota.
Summit earlier this year announced that a Gevo plant at Lake Preston, South Dakota, that will make sustainable aviation fuel from corn also intends to use the Summit pipeline to reduce its carbon footprint.
The Gevo and NuGen plants are not included in Summit’s pipeline route application that is pending with the South Dakota Public Utilities Commission.
John Satterfield, Summit's director of regulatory affairs, said separate applications will be filed for the additional plants.
Summit says it has commitments for just over half of the pipeline’s planned CO2 capacity.
“We’re talking with people every day,” Satterfield said of other potential partners.
The project has faced some opposition from some county officials, landowners and residents along the route, with concerns about safety, property values, and damage to farmland and drain tile. Opponents also have been vocal that eminent domain should not be used to allow carbon pipeline companies to obtain easements.
Summit said it has secured about 70% of the pipeline route through voluntary easements with nearly 2,500 landowners.
Summit says the project will benefit ethanol plants and corn growers by allowing the ethanol plants to sell into low-carbon fuel markets such as California.
“We are excited to welcome NuGen to our expanding network of partners,” said Lee Blank, CEO of Summit Carbon Solutions. “NuGen shares our dedication to supporting the long-term sustainability of U.S. agriculture by decarbonizing the supply chain. NuGen’s commitment to quality, yields, and efficiency aligns perfectly with our vision.”