Navigator CO2 cancels pipeline project, including into Floyd County; Summit pushes back construction timeline

By Jared Strong, Iowa Capital Dispatch

One of three carbon dioxide pipeline companies that have sought to build in Iowa announced on Friday, Oct. 20, that it’s canceling its proposal amid the “unpredictable nature of the regulatory and government processes” of Iowa and South Dakota.

Another proposed pipeline project announced that it was pushing back its construction timetable.

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.

In September, the company suffered a setback in South Dakota when the state’s Public Utilities Commission denied it a permit, partly because its route did not conform with county ordinances that restrict the placement of such pipelines.

Navigator then asked state utility regulators in Iowa to suspend its permit process while it awaited a decision from Illinois regulators. Less than two weeks ago, it asked to pull its permit application in Illinois.

“As good stewards of capital and responsible managers of people, we have made the difficult decision to cancel the Heartland Greenway project,” Navigator’s chief executive, Matt Vining, said in a project update posted to the company’s website on Friday. “We are disappointed that we will not be able to provide services to our customers and thank them for their continued support.”

Pipeline regulations vary from state to state and by type of pipeline, which was challenging to maneuver, said Elizabeth Burns-Thompson, a spokesperson for the company.

“There’s also been significant discussion at the legislative level in each state about possible changes to their state-level processes in light of these proposed projects, creating even more uncertainty about what the future may hold,” she said.

Navigator hadn’t filed a motion to withdraw its permit request in Iowa as of Friday, according to Iowa Utilities Board documents. Burns-Thompson said Navigator signed option agreements for easements with landowners that will expire after a few years.

“This is a historic victory for the people of Iowa,” said Jess Mazour, of the Sierra Club of Iowa, which has resisted the pipeline proposals.

“We are going to stop the Summit and Wolf Carbon pipelines next,” Mazour said, referring to the other two proposed CO2 transportation pipelines, Summit Carbon Solutions and Wolf Carbon Solutions.

“They will meet resistance at every level in every corner of every state,” she said.

The pipeline projects are meant to capture lucrative federal tax credits for sequestering carbon dioxide, a greenhouse gas that is a primary driver of climate change. Ethanol plants would benefit from the tax credits and from producing low-carbon fuels that can be sold in stricter markets.

Pipeline opponents have argued that the projects pose safety risks to residents if they rupture, could damage farmland, and do not serve a public purpose that justifies the use of eminent domain to construct them.

The Iowa Renewable Fuels Association, which advocates for ethanol production and has supported the pipelines, bemoaned Navigator’s decision and predicted that corn prices will drop if ethanol plants are unable to capture their carbon.

“Over the last year, we have been disappointed with the amount of disinformation that has been spread among the public and the regulators across multiple states,” said Monte Shaw, executive director of the association. “That does not happen by accident. Rather, it is being pushed by groups who oppose modern agriculture and whose stated mission is to destroy farming as we know it.”

Landowners in the path of Navigator’s project who have refused to sign land easements were elated by its cancellation.

“It’s wonderful,” said Amy Solsma, an O’Brien County landowner who operates a pumpkin farm. “David slayed Goliath.”

Summit initially indicated its five-state, 2000-mile system would be in operation sometime in 2024. It would transport captured carbon dioxide from ethanol plants for underground sequestration in North Dakota and has the potential to gain approval yet this year in Iowa.

But utility regulators in North and South Dakota rejected Summit’s permit requests in recent months.

“We look forward to continuing to work with regulatory bodies to find a path through our five states, to begin operations in early 2026,” Summit said in a prepared statement on Thursday.

In North Dakota, the Public Service Commission has agreed to reconsider Summit’s permit request with an adjusted route.

It’s unclear how long that reconsideration process might take because state law doesn’t set a deadline for its completion. The commission recently requested specific information about the route changes so that it can determine how to proceed.

A hearing to consider whether to overrule two county ordinances that restrict pipeline placements is expected to be scheduled for no earlier than December, and it’s likely that further hearings will be held early next year to solicit input about the changes.

In South Dakota, Summit plans to adjust its route and reapply for a permit. State law requires its Public Utilities Commission to rule on a permit request within a year of application, although Summit’s first permit process there took more than a year because the company asked for an extension.

In Iowa, Summit’s final evidentiary hearing is set to resume in November. That hearing in Fort Dodge went for seven weeks starting in late August before it paused early this month due to scheduling conflicts.

The company’s permit process with the Iowa Utilities Board has been ongoing for more than two years.

“Summit Carbon Solutions remains as committed to our project as the day we announced it,” the company said Thursday.

In response to Navigator’s announcement, Summit said it “welcomes and is well-positioned to add additional plants and communities to our project footprint.” Navigator had planned to connect to more than a dozen facilities in Iowa.

Wolf Carbon Solutions has said it will not use eminent domain for its comparatively short route in Iowa. About 90 miles of pipe would connect to two ethanol plants in eastern Iowa, and their carbon dioxide would be piped to Illinois.

A Wolf spokesperson did not immediately respond to a question about the status of that project.

— Iowa Capital Dispatch is part of States Newsroom, a network of news bureaus supported by grants and a coalition of donors as a 501c(3) public charity. Iowa Capital Dispatch maintains editorial independence. Contact Editor Kathie Obradovich for questions: info@iowacapitaldispatch.com. Follow Iowa Capital Dispatch on Facebook and Twitter.