MICROSOFT CLARITY

Economic contributions of Summit Carbon Solutions in South Dakota

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 South Dakota. The project contributes to the South Dakota 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).

$1,163m*
Total capital expenditures
from 2021–2027

Average wage of employees
supported by construction

$56,454

$52.7m*
Annual operating costs, 2027

Average wage of employees
supported by operation

$111,995

494
Total pipeline miles

8
Total Capture Facilities

Capital
expenditures

Economic contributions of capital expenditures
2021-2027

Capital expenditures in South
Dakota from Summit and its
contractors will support 3,685
worker years in the state from
2021 through 2027, or 650
annual jobs on average. The
annual jobs include 505 jobs
supported through Summit’s
suppliers and contractors. Another
145 jobs are supported through
induced contributions.

7.5
worker years are
supported for every
mile of pipeline
constructed

3.2
worker years are
supported for every
million dollars of
capital expenditure

Economic Growth in SD3

Operations

Economic contributions of ongoing operations
Typical operating year, 2027

Summit’s operations will support
165 jobs in the state in 2027. This
includes 30 direct Summit
employees and 71 supported
through Summit’s suppliers and
contractors. Another 64 jobs are
supported through induced
contributions.
3.1
jobs are supported for every million
dollars in operations

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

There are 18 pipeline counties in the
state. The remaining 48 counties in
South Dakota 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
South Dakota’s sales tax liability
due mainly to purchases of
construction materials and
equipment and federal individual
income tax liability.

$41.1m
Total sales tax liability
(Direct, indirect and induced)

Economic Growth in SD8

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 South Dakota exceeds $1,163 million. However, right-of-way acquisition costs and damages are not included in the analysis. The
operating expense provided by Summit for South Dakota for 2027 totals $70 million. $15 million in taxes and $2 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