Economic contributions of Summit Carbon Solutions in Iowa
Summit Carbon Solution’s planned pipeline project will transport carbon dioxide for sequestration across five states: Iowa, Minnesota, Nebraska, North Dakota, and South Dakota. The project will reduce the carbon footprint of ethanol production and enhance the long-term economic viability of ethanol, agricultural, and other related industries. This page presents the economic contributions from the project’s construction and operations for the state of Iowa. The project contributes to the Iowa economy by employing workers, paying salaries and benefits, purchasing goods and services from local businesses, contributing to other household consumption, and paying taxes. The project’s economic contributions go beyond the direct impacts, creating additional rounds of impacts, including jobs and earnings for contractors and supplier businesses (indirect impact) and at locally-supported consumer businesses where employees spend their wages (induced impacts).
$4.5b*
Total capital expenditures
from 2021–2027
Average wage of employees
supported by construction
$67,233
$175m
Annual operating costs, 2027
Average wage of employees
supported by operation
$99,941
1,062
Total pipeline miles
30
Total Capture Facilities
Capital
expenditures
Economic contributions of capital expenditures
Decision Innovation Solutions (DIS) prepared an Economic Impact Report for Summit’s project, which estimated jobs by averaging employment over a seven-year period since the project began, including early planning stages. During peak construction, Summit-derived estimates indicate the workforce will be significantly higher. During construction we expect 6,163 annual jobs on average in Iowa.
Operations
Economic contributions of ongoing operations
Typical operating year, 2027
Summit’s operations will support
578 jobs in the state in 2027.
This includes 102 direct Summit
employees and 238 supported
through Summit’s suppliers and
contractors. Another 193 jobs are
supported through induced
contributions.
3.3
jobs are supported for every million
dollars in operations
Pipeline mileage and worker years contribution by county, Iowa**
Capital expenditures 2021-2027
Total tax impact of capital expenditures
Federal, state and local taxes, 2021-2027
The primary drivers of Summit’s
construction phase taxes are
Iowa’s sales tax liability
due mainly to purchases of
construction materials and
equipment and federal individual
income tax liability.
$374.3m
Total tax generated during construction
(Direct, indirect and induced)
Total tax impact of operations
Federal, state and local taxes, 2027
Counties with largest total operations
property tax impact***
(Direct Summit tax liability)
The primary driver of Summit’s taxes on operations is property tax liability, which is levied on gross property, plant, and equipment costs for pipeline and pump stations, and carbon capture facilities.
*The capital expenditures for IA are estimated to total $4.5b, of which $2.7b will be directly sourced to IA utilizing in-state construction labor and purchasing materials and equipment within the state. Right-of-way acquisition costs are included int eh capital expenditures however the cost is not included in the economic impact analysis, as it represents a transfer rather than a new activity. These figures are subject to change.
** Worker years represent the sum of full-time workers required over the course of the seven-year development and construction period (2021-2027) to complete the Summit Carbon Solution’s project. For example, if one full-time worker is hired for three years, that worker contributes three worker years. All job estimates include direct SCS employees, as well as indirect and induced jobs.
***Property tax estimates were derived utilizing an initial year valuation focusing on the cost method for valuing the assets. Pipeline costs were allocated to each county based on miles and diameter of pipe within a jurisdiction.
NOTE: Numbers may not sum due to rounding. The analysis does not include the tax impacts derived from any federal or state tax credits. The economic impacts presented here are based on preliminary estimates of costs by Summit from a specific point in time and are subject to change. Thus, any revisions to the amount of capital expenditures and operating costs may produce significantly different economic impacts.
Source: Decision Innovation Solutions (DIS) and SCS estimates.
