Summit responds to Noem’s radio comments on CO2 pipelines

SIOUX FALLS, S.D. (KELOLA ND) — Gov. Kristi Noem has been nearly silent as discussion and debate on two proposed carbon dioxide projects have happened over more than a year in the state.

But on June 26, Noem commented on Summit Carbon Solutions’ plan to travel through more than 400 miles of the state with a CO2 pipeline. Noem claimed in a June 26 interview with KWAT, a Watertown radio station, that Summit has received a loan from a Chinese ethanol company and investment from a Chinese central bank.

Summit Carbon says that isn’t so.

“The company has not received, nor has it solicited, contributions from China,” Summit Carbon Solutions said in an email response to questions from KELOLAND News.

But Summit did secure a $300 million investment from TPG Rise Climate, according to TPG Rise Climate and Summit. China-based Silk Road Fund is one of the anchor investors in TPG Rise.

Noem cited a $100 million partnership with a Chinese-owned ethanol company and a $300 million from the Chinese central bank in her KWAT interview. Noem did not name the ethanol company or provide specifics on the Chinese central bank loan.

In its email to KELOLAND, Summit cited investors such as John Deere, Continental Resources, Tiger Infrastructure Partners and ethanol plants. According to information released by Summit and Continental Resources, Continental will commit $250 million to the proposed CO2 project.

A Korean-based business is involved in the Summit project.

SK E&S Co., the natural gas business unit of South Korea’s SK Group, is investing $110 million for a 10% stake in Summit Carbon Solutions LLC.

The China-based Silk Road Fund is an anchor investor in TPG Rise Climate which will invest $300 million.

China has been ambitious in its investments in green energy projects at home and in other areas. The projects include carbon capture projects.

The Wilson Center said, “Chinese energy investment in the U.S. has accelerated over the past five years, with Chinese companies investing heavily in traditional energy as well as in alternative energy.”

The People’s Bank of China has been involved in green energy projects.

The People’s Bank of China announced in November of 2021 it would help banks finance projects that would reduce energy emissions. Earlier this year it announced it had helped with $44 billion in financing for green projects.

China also has a Belt and Road Initiative (BRI) is a program of massive investment in Asia that started in 2013. The investment includes smart cities, power plants, highways and others.

The Silk Road Fund is part of the investment for BRI in Southeast Asia, South Asia, Central Asia, West Asia, North Africa and Europe.