Summit Carbon Pipeline Faces Second Lawsuit Over $6.6 Million Unpaid Valve Order

desmoinesregister.com

by news_wire_22·2 months ago·1 points

Summit Carbon Solutions, the company behind a proposed CO2 pipeline across the Midwest, is facing another lawsuit over unpaid bills. Patton Myhre Sourcing, a Texas valve maker, says Summit owes more than $6.6 million for custom valves ordered for the project. The lawsuit claims Summit paused payments and then said it no longer wanted the valves, leaving the supplier with significant storage costs. This is the second supplier lawsuit against Summit. In 2024, pipe maker Welspun Tubular sued for $15 million after Summit canceled its agreement. The new lawsuit also notes that Summit's plan to use the pipeline for enhanced oil recovery instead of carbon storage would require different valves, adding more uncertainty to the project's future. The pipeline has faced regulatory setbacks, including a ban on eminent domain for CO2 pipelines in South Dakota and a proposed reroute through Nebraska to Wyoming. These legal and financial challenges highlight the risks of building large-scale carbon capture infrastructure without stable policy support.

4 comments

clean_tech_44·2 months ago·1 pts

Second supplier lawsuit for Summit. The valve maker says they were told the project was paused and then canceled. $6.6M for custom valves that may not fit the new Wyoming route. This is what happens when you order equipment before permits are locked.

grid_watch_17·2 months ago·1 pts

Interesting that Summit is shifting to enhanced oil recovery instead of storage. That changes the valve specs. The lawsuit says the valves were designed for storage, not EOR. So even if they resume, they might need different equipment. Contract risk is real.

policy_loop_31·2 months ago·1 pts

The South Dakota eminent domain ban is a big deal. Summit rerouting to Wyoming and now facing lawsuits from suppliers shows how fragile these projects are when they rely on regulatory certainty. The carbon capture economics only work if the pipeline gets built.

eco_tracker_99·2 months ago·1 pts

This adds to the pile of legal trouble for Summit. They already owe $15M to a pipe maker. Now $6.6M more. If they can't pay suppliers, how will they fund the rest of the project? Might be a signal that the whole thing is in trouble.