Summit Carbon Solutions sued for $6.6 million over unpaid equipment

Summit Carbon Solutions and its affiliate, SCS Carbon Transport LLC, are facing a lawsuit from Patton Myhre Sourcing, a Texas-based supplier, for an alleged breach of contract. The supplier is seeking $6.6 million in damages related to a 2022 agreement to provide 251 specialized valves and control equipment for a proposed carbon sequestration pipeline project.

The lawsuit, filed in the U.S. District Court for the Southern District of New York, alleges that Summit failed to pay for the equipment and instead informed the supplier in May 2025 that it would no longer pursue the multi-state pipeline project. The requested damages include $2.3 million for the unpaid valves, $3.6 million in storage costs, and additional interest and freight expenses.

The project, which was intended to transport sequestered carbon dioxide from biorefineries to underground storage, has faced various delays and route changes. The lawsuit claims that Summit’s decision to “conserve capital” rather than fulfill the contract has caused significant financial strain on the supplier.