Summit carbon project would be reassessed if tax credits repealed, attorney says
2024.12.12 13:20
By Leah Douglas
(Reuters) – The Summit Carbon Solutions’ massive carbon dioxide pipeline project proposal would need to be reassessed if the United States repeals tax credits for carbon capture and storage, a company attorney said on Thursday.
Summit intends to capture carbon dioxide from 57 ethanol plants across the Midwest and transport it along a pipeline more than 2,000 miles (3,218 km) long to North Dakota to be stored underground, in what would be the world’s largest project of its kind.
But the proposal relies on the 45Q tax credit program, which was expanded by the 2022 Inflation Reduction Act, offering $85 per ton of sequestered carbon.
Incoming U.S. President Donald Trump has promised to rescind all unspent funds from the IRA, arguing that President Joe Biden’s landmark climate change law is expensive and unnecessary. Altering the IRA would require an act of Congress.
Summit attorney Christina Brusven, at a hearing before the Minnesota Commission on Thursday, was asked whether the project would still be financially viable if the tax credit was repealed.
Brusven said the tax credit is key to the company’s business model and a repeal “would definitely cause a reassessment.”
Minnesota’s PUC will decide on Thursday whether to permit a 28-mile (45 km) segment of the pipeline in the state.
