PIERRE, S.D. — A new study shows that Summit Carbon Solutions’ proposed carbon capture, transportation, and storage project could mean almost $90 million in state and local tax income for South Dakota.
Summit Carbon Solutions has partnered with 32 ethanol plants– including Ringneck Energy at Onida– to develop the largest carbon capture and storage project in the world. This multi-billion-dollar infrastructure project would be built across Iowa, Minnesota, Nebraska, North Dakota and South Dakota. When completed, it would have the capacity to capture and permanently store 12 million tons of carbon dioxide every year, while also opening new markets for ethanol producers and bolstering the bottom line of corn growers.
In South Dakota, the proposed path of the pipeline project would go through 18 counties. Among the ones in the middle of the state are Sully, Hand, Hyde, Edmunds and McPherson. The projected new property tax dollars generated for those five counties ranges from over $370,000 in Hyde County to more than $1.1 million in McPherson County.
During the construction phase, Summit Carbon Solutions estimates a $795 million investment in South Dakota, with another $37 million in expenditures and $15 million in state and local taxes coming in during the operations phase.
Several key highlights include the following:
South Dakota Findings (Construction Phase)
|Total South Dakota Investment||$795 million|
|Total Labor Income in South Dakota||$440 million|
|State and Local Taxes Paid by SCS (South Dakota)||$74 million|
South Dakota Findings (Operations Phase):
|Annual South Dakota Expenditures||$37 million|
|State and Local Taxes Paid by SCS (South Dakota)||$15 million|
South Dakota County-by-County Breakdown
The table below includes only those counties where the Summit Carbon Solutions’ project is proposed to operate. It represents the company’s total investment and the forecast for incremental annual property taxes generated.
|County||Total Investment||New Property Taxes|
Project-Wide Findings (Construction Phase)
|Total Investment||$3.7 billion|
|Total Investment (Iowa)||$987 million|
|Total Investment (North Dakota)||$898 million|
|Total Investment (South Dakota)||$795 million|
|Total Investment (Nebraska)||$541 million|
|Total Investment (Minnesota)||$462 million|
|Total Average Annual Jobs Created||11,427|
|Total Federal, State, Local Taxes Paid by SCS||$371 million|
|Expenditures to Suppliers, Contractors, and More||$2.1 billion|
|Total Right-of-Way and Other Landowner Payments||$309 million|
Project-Wide Findings (Operations Phase)
|Annual Expenditures||$170 million|
|Total Jobs Supported||1,170|
|Expenditures to Suppliers, Contractors, and More||$78 million|
|Total Federal, State, Local Taxes Paid by SCS||$97 million|
*These figures represent projections based on the current route of the proposed project and are subject to change.
The data– compiled by accounting and professional services company Ernst & Young– shows the pipeline project will create jobs, generate new tax revenue for communities, support local suppliers and strengthen the Midwest regional economy.
Jake Ketzner, Summit Carbon Solutions Vice President of Government and Public Affairs, says the tens of millions of dollars in new tax revenues generated by the pipeline project will help communities pay for roads, hospitals, first responders and more.
The full report along with state-by-state fact sheets can be found at www.SummitCarbonSolutions.com/driving-economic-growth.