#1SUMMIT CARBON SOLUTIONS South Dakota Public Utilities Commission Public Input Meeting March 2022#2Summit Carbon Solutions Objectives • SUMMIT CARBON SOLUTIONS Provide Summit Carbon Solutions Project Overview to South Dakota Stakeholders Listen and respond to concerns, and seek to find common ground with South Dakota Stakeholders Who? Why? • What? • Where? • When? • How? 2#3Experienced Leadership and Team Summit Carbon Solutions • • • SUMMIT CARBON SOLUTIONS SCS Carbon Transport LLC is the Applicant and owned by Summit Carbon Solutions Company founded in the Midwest with agriculture and ethanol industry connections and sponsorship Investors include John Deere, Continental Resources, ethanol partners, and landowners Industry Experts • Experienced professionals and experts that have safely and successfully designed, constructed, and operated thousands of miles of pipeline on scores of projects South Dakota Employees and Contractors • Committed to use local contractors, local suppliers, and local businesses to provide ongoing economic benefits to local communities and the Midwest 3#4Global and National Momentum SUMMIT CARBON SOLUTIONS • Research, Goals, and Actions Decades of research investments ($ billions) in carbon capture and sequestration technology Federal and state goals, regulations, and actions to promote carbon capture and a low carbon fuel environment The do nothing alternative is not a viable solution for 7 South Dakota plant partners and supported economies South Dakota's Ethanol Leaders partnering with Summit Carbon Solutions are turning this commercial risk into an opportunity TECHNICAL REPORT TEMPLATE AND USER GUIDE (doe.gov) Council on Environmental Quality Delivers Report to Congress on Steps to Advance Responsible, Orderly, and Efficient Development of Carbon Capture, Utilization, and Sequestration | The White House The Tax Credit for Carbon Sequestration (Section 45Q) (congress.gov) 4#5Ethanol Carbon Capture and CO2 Characteristics PRIMARY ETHANOL INPUT 3 lbs of corn YIELDS CURRENT MONETIZED OUTPUTS ~1 lb of ethanol + ~1 lb of dried distillers grain + Ethanol Fermentation Carbon Dioxide (CO2) • • High purity CO2 gas stream from existing emissions source CO2 is used as a fire retardant and found in food and beverages CO2 is not flammable, combustible, or explosive OPPORTUNITY ~1 lb of CO2 SUMMIT CARBON SOLUTIONS 5#6Enhancing the Long-Term Profitability of Ethanol & Agriculture SOUTH DAKOTA ETHANOL MUST COMPETE AND THRIVE IN A LOW-CARBON WORLD ETHANOL PROVIDES A KEY MARKET FOR CORN ETHANOL OVER 12 OF SOUTH DAKOTA'S CORN GOES INTO ETHANOL EACH YEAR, THE ETHANOL INDUSTRY ADDS: PREMIUMS PAID FOR LOW-CARBON BIOFUELS UNITED STATES $43B+ of annual GDP contribution SUMMIT CARBON SOUTH DAKOTA $590M+ of annual GDP contribution SOLUTIONS EACH YEAR, THE ETHANOL INDUSTRY SUPPORTS: 340,000+ jobs 5,300+ jobs Source: 2021 Economic Contribution Study of South Dakota Agriculture, Ethanol and Forestry, July 2021 6#7Summit Carbon Solutions Broader Project Overview SUMMIT CARBON SOLUTIONS INTEGRATED CARBON CAPTURE AND STORAGE BUSINESS HEADQUARTERED IN THE MIDWEST TT CO2 The CO2 system design for 12 million metric tons of CO2 from facilities in the 5-state Midwest footprint. Step 1 Seven ethanol plant partners in South Dakota with the potential to capture -1.75 million metric tons of CO2. The CO2 will be transported via a pipeline network that spans nearly 2,000 miles and will be completed in 2024. Step 2 Over 469 miles of pipeline and four pump stations in South Dakota. Step 3 The CO2 will be permanently and safely stored deep underground in North Dakota. Sequestration is not planned or feasible in South Dakota project footprint. 7#8Project Location & Partner Facilities SUMMIT CARBON SOLUTIONS Over 12 of South Dakota's corn goes into ethanol ~200-300 million bushels of corn per year procured by seven connected South Dakota ethanol plants SOUTH DAKOTA BIOREFINERY PARTNER COMPANIES Glacial Lakes Energy, LLC REDFIELD ENERGY RINGNECK Energy TW Dakota T ETHANOL 8 Source: 2021 Economic Contribution Study of South Dakota Agriculture, Ethanol and Forestry, July 2021#9South Dakota Facilities Overview NDM-106 24" 172.78 Miles SDM-105 2 24" 26.46 Miles Sully McPherson McIntosh Dickey SDT-210 4" MPS-07 11.82 Miles Edmunds SDT-206_1 4" 0.55 Miles SDT-206 2 4" 0.59 Miles SDL-320 6" Hyde 80,48 Miles SDT-209 6" Hand 11,71 Miles SDM-105 1 20" Beadle 80.35 Miles 7 ETHANOL PLANTS ~ 469 MILES OF PIPELINE (4-24 INCHES) kota 4 PUMP STATIONS ~16 MAINLINE VALVES 5 LAUNCHER-RECEIVER SITES SDT-207 4 22.75 Miles Brown MPS-06 Spink SUMMIT CARBON SOLUTIONS Sargent TPS-04 Richland Codington Clark MPS-05 Kingsbury Miner Lake McCook Tumar Hamlin SDT-206 13.89 Miles Minnehaha MPS-04 Lyon Line:an SDT-208 6" 49.28 Miles 14: une as 6#10Preliminary South Dakota Economic Benefit Analysis SUMMIT CARBON SOLUTIONS County Miles Mile % McCook 2.24 0.5% Estimated Total Construction Costs Turner 2.17 0.5% . Budgeted ~$785MM (2022 – 2024) Lincoln 23.49 5.0% Minnehaha 26.64 5.7% Estimated Annual Operating Cost Sully 19.74 4.2% ~ • Budgeted $37MM (2025) Beadle 36.42 7.8% Clark 22 4.7% Estimated Total Construction State and Local Tax Contribution Budgeted >$28MM (2022 – 2024) - Estimated Annual State and Local Tax Contribution Codington 12.05 2.6% Edmunds 24.31 5.2% Hamlin 13.03 2.8% Hand 31.3 6.7% Hyde 18.73 4.0% Kingsbury 29.31 6.2% Lake 32.75 7.0% • Budgeted >$10MM (2025) Miner 14.76 3.1% Spink 73.87 15.7% Brown 28.07 6.0% McPherson 58.2 12.4% Over $200 million, will be spent on labor over the construction period Estimated yearly operations and maintenance spending will include an associated $2 to 3 million in labor income 10#11South Dakota Projected Project Timeline AUG 2021 SEP 2021 ● START LANDOWNER, AGENCY, AND STAKEHOLDER OUTREACH AND INFORMATIONAL MEETINGS START ROUTE ENVIRONMENTAL AND CULTURAL SURVEYS SUMMIT CARBON SOLUTIONS FEB 2022 ● START STATE AND LOCAL PIPELINE PERMITTING PROCESSES JUNE/JULY 2022 ● START FEDERAL PIPELINE PERMITTING PROCESSES Q1 2023 Q2 2024 2024 CONTINUOUS LANDOWNER DIALOGUE, INFORMATION MEETINGS, AND CONTRACTING STATE AND FEDERAL PIPELINE PERMIT DECISIONS (PROJECTED) AND CONSTRUCTION BEGINS COMMISSIONING & START-UP (PROJECTED) PROJECT IS OPERATIONAL 11 11#12Land Survey Permissions and Voluntary Easement Acquisitions SUMMIT CARBON SOLUTIONS Early and Often Landowner Communication is Important ● Continue to conduct Public and Landowner Meetings ● Land Agents are ready and available to discuss the project, process, and easements Interest in Landowner input Surveys and Permissions ● Civil, environmental, and cultural surveys are paramount to permitting process Voluntary Easement Acquisition . Striving for 100% voluntary easements 12#13Construction Process SUMMIT CARBON SOLUTIONS Meet or Exceed Federal Safety Regulations: Design, Construction, and Operations 1 2 3 4 5 6a 6b 6c 7 8 10 11 12 13 14 15 16 17 18 19 13#14Carbon Capture, Transportation and Storage is Safe and Proven SUMMIT CARBON SOLUTIONS CURRENT U.S. CO2 PIPELINE FOOTPRINT CO, Pipelines Oil and Gas Saline Reservoir Capture technology has been deployed at 40+ ethanol facilities. throughout the U.S. More than 5,000 miles of CO₂ pipelines exist in the U.S. SCS will only utilize highly rated and safe materials, including carbon steel Comply with robust regulatory framework and utilize proven technologies to ensure public safety 14#15Key Takeaways SUMMIT CARBON SOLUTIONS Budgeted $785 million in construction costs and $37 million in annual operating costs in South Dakota B Budgeted >$28 million in construction and >$10 million in annual operating State and Local Tax Benefits in South Dakota Up to 12M metric tons of CO2 is captured and stored every year The do nothing alternative is not a viable solution for the 7 South Dakota ethanol partners and supported economies Project will use proven, safe technology and meet or exceed Federal Safety Requirements (DOT PHMSA). 15#16SUMMIT CARBON SOLUTIONS