Denied South Dakota Pipeline Could Hurt the Region's Ethanol Industry

The South Dakota Public Utilities Commissionis denyingSummit Carbon Solutions' application to build a carbon pipeline through the state.

Doug Berven, executive director of the South Dakota Ethanol Producers Association, says he doesn’t see a way forward for the pipeline with HB 1052 in place, calling it a "setback" for the ethanol industry and agriculture altogether.

“It’s disappointing, and it’s kind of sad from an ethanol standpoint. South Dakota is going to miss out on these tremendous markets. Other states are still going to go forward with the pipeline," Berven said. "And so, South Dakota is going to have the least valuable corn, the least valuable ethanol. And that’s why I think it’s such a tremendous missed opportunity is other states are still going to move forward."

He said South Dakota’s ethanol might be considered less desirable to buyers because countries and companies want lower carbon scores in the products they buy. If South Dakota can’t sequester carbon, it could lose on the market to other states whose ethanol have better carbon scores.