Mar. 3, 2022
Summit Carbon Solutions announces a strategic investment from Continental Resources, Inc. (NYSE: CLR) to create the largest carbon capture and sequestration project of its kind in the world.
Continental Resources will commit $250 million over the next two years to help fund the development and construction of the project's associated capture, transportation, and sequestration infrastructure, while also leveraging its operational and geologic expertise to help ensure the safe and secure storage of CO2.
Summit Carbon Solutions will primarily capture CO2 from ethanol plants and other industrial sources in Iowa, Nebraska, Minnesota, North Dakota and South Dakota. The CO2 will be aggregated and transported to North Dakota via pipeline, where it will be safely and permanently sequestered in extensively researched subsurface geologic formations.
The project has commitments from 31 partner ethanol facilities to deliver more than 8.0 million metric tons per annum (MMtpa) of CO2, with initial pipeline capacity of 12.0 MMtpa, and expansion capabilities to handle up to 20.0 MMtpa.
Recognizing the significant growth in demand for low carbon fuels, Summit began developing plans for the project and its partnerships with ethanol producers in 2019. By leveraging decades of experience and relationships across the biofuels and agriculture industries, Summit Carbon Solutions was launched in early 2021, and is on track to achieve its target of being operational in the first half of 2024.
"Summit and Continental have a shared vision to produce clean and cost-effective energy for all Americans. This project will be transformational for the ethanol and agriculture industries and will have a substantial economic impact across the Midwest," said Bruce Rastetter, CEO of Summit Agricultural Group. "We have engaged with governors and leaders in all five states involved in the project and are grateful for the exceptional leadership and commitment from each to this initiative."
"Our goal since launching Summit Carbon Solutions has been to accelerate ethanol's path to becoming a net zero carbon fuel, which can be done in the near term and with proven technology" said Justin Kirchhoff, President of Summit Ag Investors. "To accomplish that, we first partnered with forward- thinking ethanol producers, and we now look forward to working with Continental Resources, which has unmatched experience and knowledge of the Williston Basin in North Dakota, where we will permanently sequester our partner plants' CO2."
"Continental has been actively engaged in limiting our carbon footprint for decades with our pioneering work in horizontal drilling, our invention of ECO-Pad technology and industry-leading gas capture initiatives. We look forward to working with Summit Carbon Solutions to become leaders in carbon capture and sequestration. We believe this project will become a model for the rest of the world," said Continental Resources CEO Bill Berry. "Carbon capture will play an integral role in helping reduce global emissions, and we believe Summit Carbon Solutions has the most capital efficient project to further this goal."
"Continental Resources has been in North Dakota for over 25 years. As the state's largest leaseholder and producer, no company knows the geology better than we do. The regulatory environment is second to none and we are grateful to North Dakota's leadership, who has been laying the groundwork for a project like this and been a leader in sequestration for nearly 20 years. We look forward to highlighting their leadership once again as North Dakota becomes the nexus for this project," said Continental Resources Founder and Chairman Harold Hamm.
Definitive documentation related to the investment is being finalized and is subject to customary closing conditions.
Summit Carbon Solutions seeks to lower greenhouse gas emissions by connecting industrial facilities via strategic infrastructure to store carbon dioxide safely and permanently in the Midwestern United States. For more information, visit: www.summitcarbonsolutions.com
Summit Agricultural Group is a diversified agribusiness operator and investment manager with operations in the United States and Brazil. Summit deploys capital across the agricultural supply chain with a particular focus at the intersection of agriculture and renewable energy. For more information, visit: www.summitag.com