The South Dakota Public Utilities Commission (PUC) has delivered a unanimous verdict, rejecting the permit application by Iowa-based Summit Carbon Solutions.

The rejected application sought approval for the construction of a 495-mile (796 km) pipeline intended to transport captured carbon dioxide from ethanol plants to an underground storage site within the state.

This decision was reached on what had been scheduled as the first day of three weeks of evidentiary hearings regarding the ambitious project.

In response, Summit issued a statement expressing its respect for the PUC's decision and expressed its intention to revise and resubmit the application as a commitment to pursuing the project. The application was rejected following a recommendation from the PUC's staff filed last Friday.

The staff had recommended that the commission dismiss the application due to concerns about the project's compliance with county ordinances, specifically related to setbacks and other aspects of the proposed pipeline route.

"We are hopeful that through collaborative engagement with these counties, we can forge a path forward to benefit South Dakota and its citizens," said Summit's CEO, Lee Blank.

Additionally, the company disclosed that approximately 73% of landowners along the planned South Dakota route had voluntarily granted agreements permitting Summit to access their land for the pipeline construction.

This denial by the PUC follows a similar decision made on September 7, when the commission rejected an application from Navigator CO2 Ventures for its own carbon dioxide pipeline due to concerns over safety and a lack of support from landowners along the proposed pipeline route.

Summit Carbon Solutions had a grander vision for its pipeline network, with the proposed system spanning over 3,218 km (2,000 miles) and passing through Iowa, North Dakota, South Dakota, Nebraska, and Minnesota.

However, regulators in North Dakota rejected Summit's permit application on August 4th, citing concerns over the project's environmental impact and potential effects on the state's residents. In response, Summit submitted a revised application on August 19th, indicating its commitment to overcoming the regulatory hurdles it faced.

Although the fate of Summit's carbon dioxide pipeline project remains uncertain, the company's willingness to refine its application and work collaboratively with county stakeholders suggests it remains determined to make the project a reality.