Summit, ethanol and King Corn win again

It’s heartwarming to see a team of underdogs win the big game.

That’s what happened Tuesday when the Iowa Utilities Board approved an application from Summit Carbon Solutions to build a nearly 700-mile carbon pipeline in the state. The pipeline will transport liquid carbon dioxide generated by ethanol plants to deep storage beneath North Dakota.

The board also authorized Summit to use eminent domain authority to acquire more than 800 remaining parcels owned by people who don’t want to sell.

The Summit team is led by Bruce “Republican megadonor” Rastetter. They include former governor and U.S. ambassador to China Terry Branstad, former Branstad aide and Reynolds chief of staff Jake Ketzner and Jess Vilsack, son of former governor and current U.S. Secretary of Agriculture Tom Vilsack.

All three members of the utility board were appointed by Gov. Kim Reynolds, who clearly supports the project but has not publicly acknowledged it.

No one thought they could do it. Okay, I’m being snarky.

Everyone thought they would do it.

According to Inside Climate News, the project could be eligible for $18 billion in federal tax credits over 12 years. The credits are part of the Biden administration’s efforts to combat climate change.

“Summit does not take a position on climate change,” Summit Carbon said COO Jimmy Powellduring hearings on the company’s application.

OK, at least the captured carbon won’t be used for Enhanced Oil Recovery, which squeezes more oil out of wells using carbon. That would not be climate friendly.

“Today we don’t have any shippers looking to move CO2 for EOR. If that changes, we will likely move it for that purpose,” said Wade Boeshans, executive vice president of Summit, at a Dec. 20 event held by Friends of Ag and Energy in Bismarck, North Dakota, according to reporting by Reuters in March.

But of course the main driver of all this is to save the ethanol industry, again. By extracting carbon from plants, ethanol can be marketed as a low-carbon fuel. That allows it to maintain its market and potentially expand into jet fuel and other applications.

It’s good for ethanol producers and pipeline investors. But boy is it expensive for Iowans.

More than half of the corn grown in Iowa goes for fuel, which means we’re producing a huge amount of corn to meet that demand. More corn means more nitrogen fertilizer. And more fertilizer means more nitrates entering our waterways.

Ethanol might be more palatable if farmers agreed to meet even the minimum requirements to keep nitrates out of our water. No. No regulation ever, is the answer.

According to an analysis by the Sierra Club, the Summit Pipeline would require 3.36 billion gallons of water annually, drawn from our aquifers. The renewable fuels industry disputes this estimate.

Our political leaders are fighting common sense technologies like electric vehicles because they would hurt ethanol demand. We must prevent the future from coming.

The utility is just one more example of a regulatory structure in Iowa that simply can’t say no, leaving us in a terrible situation. The public interest is no match for what is good for King Corn in Iowa.

Yes, it’s not over yet. Summit’s permit is not valid until permits are obtained in Nebraska and South Dakota. There will be an appeal. Legal action will undoubtedly be taken. Public opposition will continue.

Can the Summit team overcome these obstacles? What do you think?

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