As developers behind a nearly $10 billion pipeline aimed at bolstering the U.S. Corn Belt work to overcome fresh obstacles to construction, another carbon-capture-and-storage project has quietly started transporting ethanol plant emissions underground. 

The newly operating pipeline from Tallgrass Energy plans to take carbon dioxide from biofuel plants in the No. 3 U.S. corn growing state of Nebraska -- including ones owned by top ethanol producer Poet LLC and agriculture giant ADM -- and ultimately sequester it in Wyoming.

Unlike the larger $9 billion proposal from Summit Carbon Solutions, the Tallgrass pipeline dubbed Trailblazer was already built, shifting from natural gas to CO2. It's set to give biofuel makers along its route lower-carbon ethanol. That’s critical for an industry racing to slash greenhouse gas emissions in order to be more competitive in key markets as well as meet requirements for a tax credit known as 45Z. The Biden era incentive was made final in the “One Big Beautiful” tax bill passed by Congress and signed by President Donald Trump July 4.

Meanwhile, Summit Carbon is overhauling its plan to build a carbon pipeline through five midwestern states, including top U.S. corn grower Iowa, and store the emissions in North Dakota. The project, facing opposition from both environmentalists and farmers over safety and property rights concerns, has faced significant hurdles since it was announced four years ago. Plan backers say without Summit, top corn-producing states like Iowa risk falling behind regions that can more easily sequester carbon on site due to favorable geology or have a carbon pipeline.

 "Literally for the first time in 20 years, Iowa will no longer be the most profitable place to make ethanol. It will be Nebraska," Iowa Renewable Fuels Association Executive Director Monte Shaw said in an interview. "We hope to regain our crown." With demand growing for ultra-low-carbon fuels for use in motor vehicles, airplanes and ships, companies looking to expand ethanol operations are now more likely to go to Nebraska, he said.

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 The push for lower-emitting ethanol comes as biofuel firms and corn farmers are pushing to expand the fuel’s use and tap new markets to stave off the threat of electric vehicles. More than a third of annual U.S. corn harvests are used to make the fuel and without it, the fate of the country's biggest crop and the growers that raise it is uncertain. 

The latest setback for Summit came in April, when South Dakota denied its permit request for the second time. The rejection is causing tension between South Dakota and North Dakota, where Attorney General Drew Wrigley last week told WZFG "The Flag” radio station that he’s considering all options when asked if the state will pursue legal action against its southern neighbor over a new South Dakota state law that bars the use of eminent domain for carbon pipeline construction. 

Eminent domain, which requires landowners to be compensated, is used for projects like bridges, roads, airports, schools and oil and gas pipelines. 

Summit last week asked Iowa to lift its requirement that both South and North Dakota green light the project before building can start in Iowa. While North Dakota isn’t seen as a problem for Summit, the request signals that the company is prepared to move ahead without South Dakota. 

Representatives of Iowa-based Summit didn’t respond to a request for comment. 

Some farmers and the Iowa chapter of the Sierra Club are calling on the state to turn down Summit's request, arguing that it isn't clear what the company now wants to do with its route or the end use for the carbon emissions it seeks to trap. 

If the Tallgrass pipeline gives ethanol producers a more valuable product as companies like Green Plains expects, it could help sway opinion in Iowa and elsewhere. The Omaha-based company has plants signed up for both the Tallgrass and Summit pipelines and is counting on the opening of the former to boost profitability after struggling with major losses. 

Summit infers that it has heard the criticism from landowners. In August, the company replaced Chief Executive Officer Lee Blank with Joe Griffin, who said Summit is starting a "fresh chapter."                                                 

"We’re committed to doing things right, listening carefully, and being a partner you can trust," Griffin wrote in letters to Iowa property owners and county supervisors that were obtained by Agri-Pulse. "Before long, I believe we’ll announce several updates to our business plan that will open new markets and create greater opportunities for the region."

Summit last week listed commitments to landowners and communities that include pledges on safety, transparency, water stewardship and engagement with Native American tribes. 

"The project is designed to strengthen both by opening access to new markets like sustainable aviation fuel, protecting and creating jobs, and delivering lasting benefits to rural communities," Summit said.

Iowa corn farmer Lance Lillibridge said it's crucial that the company succeed with the pipeline.