Governor's visit contrasts with carbon pipeline land access issues

South Dakota Governor Larry Rhoden visited an ethanol plant on March 17 as part of his “Open for Opportunity” tour. However, some leaders in the ethanol industry find this visit ironic. They are disappointed because Rhoden recently signed a law that could hurt a major carbon capture project for the industry. Walt Wendland, president of Ringneck Energy in Onida, expressed frustration. He wants the plant to connect to a $9 billion pipeline project led by Summit Carbon Solutions. This pipeline would capture carbon dioxide from over 50 ethanol plants and store it underground in North Dakota. The project would also qualify for federal tax credits aimed at reducing greenhouse gas emissions. The recent law signed by Rhoden prevents carbon pipeline companies from using eminent domain to access private land. Eminent domain allows companies to acquire private property for public projects, compensating landowners fairly. Although some landowners have signed access agreements, others have refused, raising concerns about property rights and potential hazards. Wendland criticized the state for abruptly changing course. He noted that Summit had already invested heavily in obtaining easements. Without the ability to use eminent domain, accessing necessary land for the project in South Dakota could prove very challenging. Summit recently asked for a pause in its permit application, even though it has secured permits in other states. Ethanol advocates in South Dakota believe that the pipeline could bring a $1.86 billion investment and increased demand for environmentally friendly fuels. Governor Rhoden maintained that the carbon capture project could still proceed through voluntary easements. He suggested that the eminent domain ban could lead to better communication between Summit and landowners. However, Wendland indicated the political conflict over the project had led to a disappointing outcome for the agricultural community. The governor's remarks during the tour also highlighted the divisive nature of the topic. Lt. Governor Tony Venhuizen expressed hope that the state could move beyond the controversy. Some supporters of the eminent domain ban argued it was essential for protecting property rights, while others believe it will harm the state’s agriculture and economy.