Scott Hennen’s conversation with Gevo CEO Dr. Patrick Gruber
SOUTH DAKOTA – The CEO and Founder of ethanol company Gevo is considering bringing an ethanol and jet fuel plant to North Dakota after issues with carbon dioxide pipelines in South Dakota.
Dr. Patrick Gruber’s company began plans for in creating a plant in Lake Preston, South Dakota before the COVID-19 pandemic. Gevo got a $1.63 billion loan guarantee from the U.S. Department of Energy, but it’s required the plant has carbon sequestration. The company has invested $2.5 billion in the plant.
South Dakota regulators denied Summit Carbon Solutions’ permit for an carbon dioxide pipeline and is reviewing the company’s second application. Regulators denied the first application because they say it was in violation of setback ordinances in Brown, McPherson, Minnehaha and Spink counties establishing minimum distances between pipelines, homes and other structures. The Summit Carbon Solutions pipeline is proposed in five states. North Dakota and Minnesota regulators have granted the company permits.
There are several bills impacting carbon dioxide pipelines that have been introduced in the South Dakota Legislature this session. One would make it more difficult for carbon dioxide pipeline companies to use eminent domain and would subject their projects to required environmental impact statements. Another would ban eminent domain for carbon dioxide pipelines.
Gruber is concerned about going ahead with plans with the Lake Preston plant because of some people’s disdain for carbon dioxide pipelines in South Dakota and new laws potentially being made in South Dakota’s Legislature on them. He’s considering building an ethanol plant in North Dakota instead, but Gevo would have to get a permit from the U.S. Department of Energy to do so.
“North Dakota is set up for it, the wells work, it’s well-proven, it’s environmentally friendly. It’s a business friendly environment here,” Gruber said.
In December, shareholders of Richardton, North Dakota-based Red Trail energy approved a sale of ethanol production and carbon capture and sequestration assets to Gevo for $210 million. Gruber says there are no issues with carbon sequestration there because the plant has a route to sequester carbon dioxide and is doing it in the standard way.
