A new planned carbon capture and storage project might turn North Dakota into an exciting place for future low carbon investments. Senator John Hoeven has announced that Rainbow Energy is buying Coal Creek Station in North Dakota (ND) from Great River Energy. The purchase is made mainly because of the carbon capture and storage infrastructure that will be fitted on the plant.
The Coal Creek Station is North Dakota’s largest power plant and the transmission system extends between ND and Minnesota. The company owner Great River Energy announced in May 2020 that it plans to retire the coal-fired plant in 2022.
In an effort to save the power plant and the adjacent Falkirk Mine, Senator Hoeven has been assisting Rainbow Energy in making the carbon capture plant an economically viable project with a direct revenue stream from the 45Q tax credit. The tax credit provides $50 for a ton of CO2 sequestered.
According to information from Hoeven’s office, apart from it, the project will also receive loan guarantees from the US Department of Energy and US Department of Agriculture.
“We’ve been working on this for about two years…They’ll keep the employees at the plant so North American Coal can also keep their employees at the mine. This keeps both the plant and the mine operating,” said Hoeven.
Carbon Capture And Storage Project Drivers
The carbon capture investment is also a way for the state to establish itself on the map of future energy technologies and low-cost dependable electricity. Hoeven claims that energy security is one of the key drivers behind the project, in addition to jobs and affordable energy.
He sees coal energy as a low cost and dependable energy alternative for the region and combined with carbon capture and storage CCS, the component it needs to become environmentally friendly as well. “This is also about reaching out into the future and building our energy here as an energy powerhouse in North Dakota…,” he adds.
The deal between Rainbow Energy and Great River Energy opens new opportunities in the North Dakota region and keeps the jobs of the coal-fired power plant. Senator Hoeven office’s work has facilitated the deployment of the carbon capture project in order for ND to lead the way in CCS technologies.