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February 20, 2023

EEIA Notches Important Energy Win In South Dakota

The Energy Equipment and Infrastructure Alliance (EEIA), which MSCI is a member of, notched an important win in South Dakota this week that will allow carbon dioxide pipeline projects serving ethanol refineries in the upper Midwest to move forward.

Specifically, a South Dakota Senate committee vote of 9-0, a bill failed that would have precluded use of eminent domain to secure the right of way for energy infrastructure, making it very difficult for the projects to move forward. Opponents understand this tactic and have made eminent domain the primary wedge issue to stop these projects.

A major factor in the bill’s defeat was the hundreds of letters sent by EEIA members and affiliates to South Dakota states senators. Opponents will no doubt redouble their efforts to kill the projects by mounting similar campaigns in other states, notably Iowa.

EEIA will keep close watch and ask for help when needed as the permitting process moves forward.

It is critical that these ethanol-based projects succeed since they are the prime movers in what studies suggest could be a 70,000-mile network of pipelines needed over the next fifteen years to transport carbon dioxide to storage and move the needle on lowering greenhouse gas emissions. Opponents are adamantly against carbon capture and storage (CCS) projects because they argue that will enable continued use of natural gas and liquid fuels, including ethanol.

EEIA is engaging on another front in this battle in this effort. Stay tuned to Connecting the Dots for more information.

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