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 infographic 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).

Total capital expenditures
from 2021–2027

Average wage of employees
supported by construction


Annual operating costs, 2027

Average wage of employees

supported by operation


Total pipeline miles

Total Capture Facilities


Economic contributions of capital expenditures

Capital expenditures in
Iowa from Summit and its contractors will support 6,590 worker years in the state from 2021 through 2027, or 1,162 annual jobs on average. The annual jobs include 52 direct Summit employees and 891 supported through Summit’s suppliers and contractors. Another 220 jobs are supported through induced contributions.

worker years are
supported for every
mile of pipeline

worker years are
supported for every
million dollars of
capital expenditure

Iowa econmoic impact3png


Economic contributions of ongoing operations
Typical operating year, 2027

Summit’s operations will support
258 jobs in the state in 2027.
This includes 68 direct Summit
employees and 117 supported
through Summit’s suppliers and
contractors. Another 74 jobs are
supported through induced
jobs are supported for every million
dollars in operations

Pipeline mileage and worker years contribution by county, Iowa
Capital expenditures 2021-2027

There are 30 pipeline counties in the
state. The remaining 69 counties in
Iowa are considered non-pipeline
counties. 96% of the total gross output
due to capital expenditures come from
the pipeline counties, and the
remaining 4% comes from non-pipeline
counties due to secondary economic
(indirect and induced) impacts.

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.

Total sales tax liability
(Direct, indirect and induced)

Iowa economic impact7

Total tax impact of operations
Federal, state and local taxes, 2027

Counties with largest total operations propery tax impact
Federal, state and local taxes, 2021-2027

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 provided by Summit for Iowa exceeds $1,688 million. However, right-of-way acquisition costs and damages are not included in the analysis. The
operating expense provided by Summit for Iowa for 2027 totals $127 million. $43 million in taxes and $3 million in insurance costs are not included. The excluded categories
represent a transfer rather than new economic activity.
** Worker years represent the sum of full-time workers required over the course of the seven-year construction period (2021-2027) to complete the construction of Summit
Carbon Solution’s pipeline project. For example, if one full-time worker is hired for three years, that worker contributes three worker years.

Note: Numbers may not sum due to rounding. Total tax impacts from construction expenditures as well as operations include direct, indirect, and induced impacts. The analysis does
not include the tax impacts derived from Section 45Q (federal tax credit for CO2 sequestration). The economic impacts presented here are based on preliminary estimates of costs by
Summit from a specific point in time. Thus, any revisions to the amount of capital expenditures and operating costs may produce significantly different economic impacts.
Source: Ernst & Young, LLP.

View the Fact sheet for each county