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By Bob Steenson, bsteenson@charlescitypress.com
Summit Carbon Solutions announced this week that Valero ethanol plants, including the plant near Charles City, would be part of its five-state carbon dioxide pipeline if that project is approved.
Although the $8 billion Summit pipeline is proposed to pass through Floyd County from east to west, including through part of the city of Charles City, the Charles City ethanol plant had not been part of the Summit project in previous announcements.
Valero, the world’s second-largest corn ethanol producer, had originally been part of the Navigator CO2 Ventures pipeline proposal, including the Valero Renewables Charles City plant.
Navigator announced in October last year that it was canceling its project because of the “unpredictable nature of the regulatory and government processes” in Iowa and South Dakota.
Navigator CO2 had proposed to build a more than 1,300-mile pipeline system to transport captured carbon dioxide from ethanol plants and other facilities in five states to Illinois for underground sequestration or other commercial purposes. The bulk of that system was planned for Iowa.
Eight Valero ethanol plants are now proposed to join the Summit project, including five in Iowa, at Fort Dodge, Albert City, Lakota and Hartley in addition to the Charles City plant.
The Summit Carbon Solutions announcement this week gives the Valero plants an outlet to capture and store their produced CO2 if the Summit pipeline is built. Ethanol plants are seen as among the easiest sources of carbon dioxide to capture, because they emit an almost pure stream of CO2 as part of their production process.
“Participation from these eight facilities adds 1.1 billion gallons of ethanol per year and will lead to the capture of 3.1 million metric tons of CO2 annually,” Summit said in its announcement. “This will reduce the carbon intensity of ethanol production and further open access to low-carbon fuel markets.”
Bruce Rastetter, founder and executive chairman of Summit Agricultural Group, said, “I am excited to welcome one of the premier energy companies in the world into our project, bringing in a new era where agricultural innovation and energy market expansion go hand in hand.”
With the addition of Valero, Summit’s project now would include 57 ethanol production facilities across Iowa, Minnesota, Nebraska, South Dakota and North Dakota, from which it says it could capture and sequester more than 16 million metric tons of CO2 per year.
The Summit pipeline would become the world’s largest carbon capture and sequester endeavor if approved and constructed, and could qualify for many billions of dollars in federal tax credits.
The federal government has offered those credits to encourage projects that would capture CO2, a greenhouse gas associated with causing climate change, either by pulling it out of the atmosphere or capturing it before it is released.
The pipeline projects have faced intense opposition from some people, including some of the landowners on whose property the pipeline would be built.
Although a majority of the landowners involved have signed voluntary easem*nt agreements in return for payments and promises to return their land to its original condition once the pipeline is installed, a significant number have refused to cooperate, prompting Summit to request the right to use eminent domain as part of its pipeline permit application.
Project opponents have pointed out concerns about dangerous pipeline ruptures, the effects of pipeline construction on land and crop production, working to extend reliance on fossil fuels, and whether public domain should be used to force property owners to allow access for what is a private company project.
The Summit permit application hearing before the Iowa Utilities Board ended last November, and a decision by the board on whether the project will be allowed to proceed in the state is expected to be announced at any time. Summit will need to get approval in all five states to complete the project as planned.
Summit Carbon Solutions CEO Lee Blank said, “I view our project as representing a meaningful shift in agriculture to lower the carbon intensity of biofuel products. It’s about practical changes that can make a real difference: improving farm profitability, increasing land values and offering solid support to our farm families and rural communities. This project represents a significant step forward that is grounded in the humble and hardworking spirit of agriculture.”
Rastetter said, “By integrating Valero’s facilities into this project, we will make major strides in providing more than a billion gallons of low-carbon fuels to a marketplace hungry for the product. This project ensures the agriculture and biofuels industries will remain dynamic and competitive, meeting the needs of today while preparing for the opportunities of tomorrow.”
