South Dakota Rejects Permit for $8.9 Billion Carbon Pipeline

South Dakota has rejected Summit Carbon Solutions’ application to build a pipeline, in the latest setback for the $8.9 billion carbon-sequestering project that would cut across five US farm states over roughly 2,500 miles.

The South Dakota Public Utilities Commission voted 2-1 Tuesday to reject the application, said Leah Mohr, deputy executive director. That’s after some land owners fiercely opposed the project while state regulators already rejected a previous route through the state last year.

The pipeline would collect carbon from ethanol plants that turn corn into the gasoline additive, shrinking the carbon footprint of the biofuel sector. However, ...