Pipe Supplier Seeks $15 Million From Summit Carbon Ahead of Trial
A legal battle tied to a major carbon capture pipeline project is heading to trial after settlement efforts failed, adding another challenge for a project already facing regulatory hurdles.
(P&GJ) — Summit Carbon Solutions is preparing for a Delaware court trial over a contract dispute with pipe manufacturer Welspun Tubular, which is seeking approximately $15 million in damages related to pipe orders for the company's proposed carbon capture pipeline, according to the Des Moines Register.
The lawsuit stems from a 2023 agreement under which Welspun was expected to manufacture roughly 785 miles of pipeline for Summit's multistate carbon dioxide transportation project. Court filings allege that after the project encountered permitting delays and opposition from landowners and regulators, Summit sought to postpone and eventually terminate the agreement. Welspun argues the cancellation triggered contractual penalties and additional costs tied to materials purchased for the project.
Settlement discussions between the two sides have failed to produce an agreement, and the case is scheduled for trial beginning June 15. As reported by the Des Moines Register, the proceedings are expected to last several days and will be decided by a judge rather than a jury. Summit has denied wrongdoing in the dispute.
The trial comes as Summit continues to revise plans for its proposed carbon capture pipeline network. The company recently proposed route changes that would remove several Iowa counties from the project while shifting carbon storage plans away from North Dakota and toward Wyoming. Those revisions remain under review by Iowa regulators.
The carbon capture project, valued at roughly $9 billion, is designed to transport captured carbon dioxide from ethanol facilities across the Midwest for permanent underground storage. However, ongoing legal challenges, permitting issues and route modifications continue to create uncertainty around the project's timeline and ultimate development.