Summit Carbon Faces $15M Lawsuit as Pipeline Plans Unravel
A $15 million lawsuit against Summit Carbon Solutions is heading to trial next week, adding to the mounting troubles for the company behind a controversial carbon pipeline project that would cut across Iowa.
Settlement talks between Summit and pipe manufacturer Welspun Tubular have collapsed, and a Delaware judge is set to hear the case beginning June 15.
What the Lawsuit Alleges
Welspun filed suit in 2024, claiming Summit commissioned the company in May 2023 to produce roughly 785 miles of pipe at a total cost of about $183 million. The pipe was intended for Summit's multibillion-dollar carbon capture pipeline, which would transport captured carbon dioxide from ethanol plants across Iowa and other Midwestern states for underground storage.
According to the complaint, Summit sought to delay fulfillment of the contract after the pipeline project hit regulatory roadblocks and fierce public pushback. The original purchase agreement allowed Summit to delay production for up to six months, through November 2023.
Welspun says it managed to push the start of production to early 2024 by filling other orders, and Summit agreed to that arrangement. But when Welspun notified Summit it planned to move forward with production in February, the pipeline company asked for yet another delay.