For four years, conflicts over private property rights have stalled state legislatures in the Midwest and delayed a pipeline project aimed at transporting liquefied carbon dioxide from regional ethanol plants.
Amid this eminent domain impasse, Summit Carbon Solutions, based in Iowa, has shifted its focus from carbon sequestration to fossil fuel extraction.
The company now plans to use the pipeline for enhanced oil recovery (EOR), a process that injects CO2 into wells, improving oil extraction by thinning the oil, potentially doubling retrieval rates.
A few years ago, Summit’s website indicated the project wouldn’t be for EOR, focusing instead on emission cuts via underground sequestration and low-carbon sustainable aviation fuel.
Despite legal challenges over property rights in Iowa, North Dakota, and South Dakota, and delays in obtaining permits, Summit faces a vastly different energy market and political environment.
Summit now aligns with policies encouraging fossil fuel production while easing restrictions on greenhouse gas emissions. Critics argue the company is flexible with its messaging to push the pipeline forward.
“It’s just whatever’s convenient for them in the moment,” said Jess Mazour, conservation coordinator for Iowa’s Sierra Club. In late 2024, the organization challenged Iowa Utilities Commission’s approval of Summit’s permit.
Summit did not respond to requests for comment regarding its strategic shift.
The Climate Pitch
Summit Carbon Solutions is a subsidiary of Summit Agricultural Group, a private equity firm owning nearly 14,000 acres of Iowa farmland. Both are founded by Bruce Rastetter, an agribusiness entrepreneur known for political donations.
In 2021, Summit proposed the Midwest Carbon Express pipeline to transport CO2 from Iowa ethanol plants for underground storage in North Dakota. The pipeline aimed to reduce greenhouse gas emissions, open new low-carbon fuel markets, and boost the Midwest farm economy.
Using resources like the Internet Archive, changes in Summit’s project website show an evolving narrative, initially urging net-zero CO2 emissions by 2050, aligning with the Paris Agreement’s goals.
By 2023, Summit continued to emphasize carbon neutrality, projecting the prevention of releasing 12 million metric tons of CO2 annually.
Summit advertised that the pipeline’s emissions reduction would equate to removing 2.6 million vehicles from roads, aiming to stay competitive amid rising electric vehicle demand.
Lowering ethanol’s carbon index was vital to keep it competitive, especially in regions with renewable fuel standards, with intentions to enter the sustainable aviation fuel market. In 2023, Summit launched Summit Next Gen to develop the world’s largest ethanol-to-sustainable aviation fuel plant in Texas but has yet to update on its progress.
Lucrative Business
Summit presented its pipeline as a way to benefit corn growers while capitalizing on federal tax credits for carbon capture technology aimed at cutting emissions and developing expensive infrastructure.
Federal tax credits were expanded in 2018 and 2022, offering up to $85 per metric ton of CO2 for permanent storage and up to $65 for EOR.
Summit consistently stated it would not pursue smaller tax incentives for EOR. Yet, after the 2022 Inflation Reduction Act, Summit expanded its pipeline to transport 16 million metric tons of CO2 annually, potentially securing $1.5 billion in tax credits each year.
Abandoning Decarbonization
During Trump’s second term, climate policy shifted. Trump gutted renewable energy incentives, invested in carbon-intensive energy, opened public land for mining and drilling, and repealed a federal finding linking greenhouse gas emissions to health.
Trump’s policies aimed for American “energy dominance,” offering equal tax credits for both EOR and permanent storage. Summit has since adapted to these political changes, removing terms like “climate change” from its website in favor of a focus on becoming a CO2 supply artery for major oil and gas basins.
Summit did not respond to inquiries about its revised strategy. The economic decision aligns with Trump’s tax credit modification, said Matt Fry of the Center for Energy Regulation and Policy Analysis.
Fry stated that although Summit initially emphasized permanent storage, EOR was always a possible direction, dictated by market trends.
Despite Summit’s changing messaging, EOR remains crucial for ongoing oil and gas production, Fry indicated, as traditional extraction becomes less viable.
Lawyer Brian Jorde suspects Summit planned for EOR from the start, but admitted intentions could have jeopardized project approval.
“Permission to Explore All Options”
Summit has faced various permitting challenges. South Dakota’s 2025 ban on eminent domain for carbon pipelines and North Dakota’s permit revocation have hindered progress.
Summit has petitioned to amend its Iowa permit, exploring new destinations like Nebraska, Wyoming, Colorado, and Kansas. Jorde argues this pivot should invalidate the application, forcing Summit to start over.
In a cease-and-desist letter to the Sierra Club’s Mazour, the company stated $1 billion is invested in the project, though Mazour doubts Summit has definitive plans.
“I think they’re just trying to put all the cards out on the table and figure out which one might work,” Mazour said.
Original Story at insideclimatenews.org