SIOUX FALLS, South Dakota: A new South Dakota law banning the use of eminent domain for carbon capture pipelines has cast doubt on the future of a massive 2,500-mile project spanning five Midwest states.

The $8.9 billion pipeline, led by Summit Carbon Solutions, aims to transport greenhouse gas emissions from over 50 ethanol plants in Iowa, Minnesota, Nebraska, North Dakota, and South Dakota to an underground storage site in North Dakota.

Despite the legal setback, Summit Carbon Solutions remains committed to moving forward. "All options are on the table," the company said in a statement, indicating that legal action may be a possibility. The pipeline has already secured over 2,700 easements and has obtained approvals for routes in Iowa and North Dakota, as well as a segment in Minnesota.

One of the biggest challenges now is rerouting. The current path runs nearly 700 miles through South Dakota before reaching North Dakota, making an alternate route through Minnesota difficult. Summit has yet to confirm whether it will consider adjusting the pipeline's course.

The law's sponsor, Republican Rep. Karla Lems, suggested Summit could negotiate directly with South Dakota landowners or explore a Minnesota route. Meanwhile, Gov. Larry Rhoden insisted the law is not intended to halt the project but rather to prompt a "reset."

The pipeline plays a crucial role in the ethanol industry's long-term strategy. As electric vehicle adoption grows, ethanol producers are seeking new markets, including aviation fuel.

However, current regulations require ethanol-based jet fuel to meet strict carbon reduction standards to qualify for tax incentives. According to Iowa Renewable Fuels Association Executive Director Monte Shaw, carbon capture technology is seen as essential to meeting these goals.

South Dakota ethanol producers fear the law could put them at a competitive disadvantage. "Ever since I built a plant, I never wanted an advantage; just don't put me at a disadvantage," said Walt Wendland, who runs an ethanol facility in Onida, South Dakota.

Summit has faced multiple challenges over the past four years, including lawsuits in Nebraska, regulatory opposition in Iowa, and now South Dakota's eminent domain ban. While the Biden administration has increased incentives for carbon capture through the Inflation Reduction Act, former President Donald Trump has prioritized traditional energy sources like oil, gas, and coal, raising questions about the future of federal support for carbon pipelines.

Summit has expressed optimism about completing the project but has not detailed how it will proceed without eminent domain authority in South Dakota.