The Iowa Utilities Board said on Tuesday that it has approved Summit Carbon Solutions' application for a construction permit for its proposed carbon dioxide pipeline through the state.
Summit is trying to build the biggest carbon dioxide capture pipeline in the country to transport greenhouse gases from Midwest ethanol refineries and bury them underground.
The line would cross five states, including Minnesota.
"After weighing numerous factors for and against Summit Carbon's petition, the board found that the service to be provided by Summit Carbon will promote the public convenience and necessity," the IUB said in its decision.
The ethanol industry wants Summit to sequester its carbon to drive down its carbon intensity and draw lucrative tax credits from state and federal clean fuel programs.
Summit wants to break ground next year and begin operations in 2026. The CO2 would end up in North Dakota. It still needs regulatory approval in other states.
Nebraska-based Navigator has already scrapped a plan for its Heartland Greenway CO2 pipeline after running into regulatory issues. South Dakota's utilities commission rejected the application in the fall.
Summit has forged ahead with plans despite initial rejections in the fall from North and South Dakota and several eminent domain fights in Iowa.
Industry experts have sought carbon-capture technologies, such as pipelines, to create fuels with fewer emissions. The company would have been paid, effectively, through federal tax credits that were initially enacted by President George W. Bush and recently boosted by the Inflation Reduction Act.
