Valero to partner with Summit on CO2 pipeline

The company behind a proposed CO2 pipeline on Monday announced Valero Renewables' ethanol plant in Hartley would be connected to the route if granted future regulatory approval.

Ames-based Summit Carbon Solutions said eight of Valero's ethanol facilities across Iowa, Nebraska, Minnesota and South Dakota are expected to be incorporated into the project. Valero was previously associated with Navigator CO2's pipeline, which was scrapped last year after the company cited the "unpredictable nature of the regulatory and government processes."

The addition of Valero's facilities brings the number of Summit's plant partners in Iowa to 30. There are currently 57 ethanol plants associated with the project overall.

"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," said Bruce Rastetter, founder and executive chairman of Summit Agricultural Group, in a news release. "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."

CO2 pipelines have become a contentious issue in Iowa and the Midwest over the past three years. If built, they would transport compressed liquid CO2 from ethanol plants to underground sequestration sites. According to the companies behind the proposed pipelines, the goal is to reduce the carbon footprint of Midwest ethanol plants, in turn leaving markets open in states that are more aggressive on reducing consumption of fossil fuels, which is blended with ethanol.

Summit, along with its partners, would receive federal tax incentives for capturing and sequestering CO2. The greenhouse gas is a main contributor to global warming.

"I view our project as representing a meaningful shift in agriculture to lower the carbon intensity of biofuel products," said Summit Carbon Solutions CEO Lee Blank. "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."

Summit Carbon Solutions needs regulatory approval from the Iowa Utilities Board (IUB) to construct the pipeline. The company's proposal, along with those of others, has received staunch pushback from Iowa landowners and environmental groups who claim its construction would violate property rights with the use of eminent domain and also harm the environment long term. Safety concerns have also been raised – if there's a break in the line, escaped liquid CO2 would transform into a gas, which is a dangerous asphyxiant.

If built, Summit's pipeline is expected to transport more than 16 million metric tons of carbon dioxide each year. The system has a total capacity of about 18 million metric tons.