Large-Scale Economic Development Reported from the Bank of North Dakota

Article by Kacie Kostelecky

A Note to the Reader

Recently, I had the opportunity to attend a virtual Direct Line meeting from the Bank of North Dakota highlighting updates on large-scale economic development projects.
An insightful discussion unfolded regarding crucial developments in our region. The session shed light on economic trends, potential business opportunities, and other noteworthy aspects impacting rural North Dakota. I outlined exciting developments and key information in the blog below. I hope this information sparks a deeper understanding of our local landscape and perhaps encourages others to consider attending such meetings, as they provide a valuable platform for staying informed and fostering community involvement.

-Kacie Kostelecky, Vision West ND Admin Team

Bank of North Dakota Updates: A Strategic Approach to General Awareness, new Website, and FEDNOW Discussion

Commencing this month, the Bank of North Dakota (BND) is launching a comprehensive General Awareness Campaign. This initiative aims to bolster understanding of BND's pivotal role among the general population and within legislative circles. Emphasizing partnerships with local financial institutions and the legislature, the campaign will feature student loans in commercials and across social media channels. On March 28, the new and improved BND website will go live. The website enhancements prioritize ADA accessibility, ensuring a seamless experience for all users. Additionally, on March 19, a Direct Line call will delve into discussions surrounding FEDNOW, addressing pertinent developments in the financial landscape.

Large-Scale Economic Development Projects: Clean Sustainable Energy Projects.

Free to use photo by Hong Son

Notable initiatives in the Vision West ND region include:

1. Harvestone CO2 Injection, and CCS (Underwood): The Blue Flint facility began active CO2 injection in October after receiving final approval from the North Dakota Department of Mineral Resources. Blue Flint is the second facility in North Dakota to actively capture and inject CO2 under Class VI primacy and the first facility in the United States operating under the Inflation Reduction Act. 

   The Blue Flint Ethanol plant produces more than 200,000 metric tonnes per year of CO2, as a byproduct of the fermentation process. Using CCS, Blue Flint is capturing 100% of their CO2 emissions from the fermentation process and is injecting approximately 600 metric tons of CO2 per day. The CO2 is permanently stored underground about one mile below the surface in the Broom Creek formation. 

2. PROJECT TUNDRA (Center): A $1.5 billion carbon capture and sequestration project.
   The vision for Project Tundra is to advance next-generation carbon capture and storage technologies at the separately-owned Milton R. Young Station power generation facility. Up to 4 million metric tons of the facility’s carbon dioxide (CO2)emissions would be captured annually through the process. The CO2 would then be safely and permanently stored in deep geologic formations approximately a mile underground. Project Tundra will utilize the largest fully permitted CO₂ storage facility in the United States near Center, N.D.

3. Coal Creek Station: Transitioning to Rainbow Energy Center and exploring sequestration.

   Rainbow Energy Center, LLC (REC) is the proud owner of Coal Creek Station. Nexus Line, LLC, REC’s sister company, owns the high-voltage direct current (HVDC) transmission line that transmits power from Coal Creek Station to the Dickinson converter station located near Buffalo, MN.  Together, our team works to maximize efficient energy production and sound energy management to unlock the energy sector’s full potential. REC is working diligently to capitalize on innovative technologies so that future generations have sustainable energy solutions. Rainbow Energy Center plans to focus on baseload energy from Coal Creek Station with carbon capture and incremental generation from renewables to fully utilize the capacity of the HVDC transmission system. Combined, these diverse energy sources are essential to ensuring the electric grid remains reliable and has sufficient energy for consumers that can be drawn upon when needed.

4. Scranton Holding Company (Beulah / Hazen): Exploring raw material utilization for hydrogen and iron, potentially leading to a steel-making plant.

5. Talon Metals Corp: Nickel mining for Tesla with refinement in ND.

   On July 1, 2022, Talon’s wholly owned subsidiary Talon Nickel (USA) LLC applied for US government funding. The application proposed an ore processing and tailings management facility (the “Battery Minerals Processing Facility”) located at an existing industrial brownfields site in Mercer County, North Dakota, receiving feedstock from the Company’s underground Tamarack mine in central Minnesota and other potential sources in North America.

   The proposed separation of mine and processing operations will create a new domestic battery-grade nickel and iron production capability designed to meet the timelines set in both the Biden Administration’s National Blueprint for Lithium Batteries | Department of Energy[1] and the Tesla-Talon agreement entered into on January 7, 2022 (“Tesla-Talon Supply Agreement”).  On a cost-share basis and subject to final negotiations, the US Department of Energy will provide $114 million grant (estimated to be 27% of total project cost) towards project construction and execution costs for the Battery Minerals Processing Facility in North Dakota.

6. UND-led Hydrogen Project HEARTLAND HYDROGEN HUB: Securing $1 billion federal funding. Prairie Horizon H2 is to be located in Dickinson for sustainable aviation fuel.

   “Think of hydrogen as the Swiss Army knife of energy.” -CHARLES GORECKI, EERC CEO

   The Heartland Hydrogen Hub (HH2H) is one of the seven regional clean energy projects selected by the U.S. Department of Energy (DOE). Located in the heartland of the United States, its goal is to decarbonize multiple sectors in the region, including agriculture and industrial manufacturing, while producing clean hydrogen for end use in fertilizer and power generation. HH2H is a collaborative initiative that will produce low-carbon hydrogen; decarbonize regional supply chains; and create clean energy jobs across Minnesota, Montana, North Dakota, South Dakota, and Wisconsin.

   Led by the Energy & Environmental Research Center (EERC), Marathon Petroleum Corporation (MPC), TC Energy, and Xcel Energy, HH2H aims to establish three clean H2 “nodes” that leverage diverse resources and markets; demonstrate sustainable business models with growth potential; develop a diverse, highly skilled, regional clean energy workforce; and advance the DOE priorities of the Justice40 Initiative.

7. Red Trail Energy LLC (Richardton): Pioneering the capture of 100% of CO2 emissions. Red Trail Energy is selling E85. (85% ethanol).

   Red Trail Energy, LLC (RTE), an ethanol producer near Richardton, North Dakota, is currently operating a CO2 capture facility adjacent to the RTE ethanol facility, to ultimately inject about 180,000 tonnes of CO2 annually more than a mile below RTE property for permanent storage. After a 5-year investigative period conducted by the EERC, in partnership with the North Dakota Industrial Commission Renewable Energy Program and the U.S. Department of Energy (DOE), the RTE CCS Project was determined a technically viable option for the significant reduction of CO2 emissions from ethanol production. The investigation was also supported by the EERC-led Plains CO2 Reduction (PCOR) Partnership, which includes over 200 partners developing and demonstrating technologies for geologic CO2 storage since 2003. Work continues as the project transitions into the first fully operational commercial CCS facility in North Dakota.

8. Cerilon(Trenton): Embarking on a $3.6 billion project in Trenton, Williams County, for energy self-sufficiency.

   When completed, the Cerilon GTL ND plant will have the lowest carbon footprint of any GTL plant in the world. Cerilon’s facility will convert natural gas into high-value and low-emission synthetic energy products, including ultra-low sulfur diesel, naphtha, and lubricant base oils. The plant creates a platform for the production of other valuable products such as ammonia and fertilizer. Cerilon GTL ND’s parent company, Cerilon, is based in Alberta, Canada. The team has been integral in the support of major GTL plants across the globe.

   The Cerilon GTL plant anticipates bringing upwards of 1,000 construction jobs and 95 permanent jobs to the area, creating new technology job opportunities along the way. The project also will bring enhanced community and infrastructure development as well as long-term property and sales tax revenue. Overall, the plant will help to accommodate the state’s growing production of oil and natural gas through innovation, not additional flaring, by offloading natural gas before entering any distribution pipeline and creating a value-added product. This project supports the pathway to Governor Burgum’s goal of carbon neutrality, resulting in a cleaner environment and greener energy options.

Sustainability is the Key Focus

Sustainability has become a key focus in North Dakota's development due to its potential to address environmental concerns, enhance economic resilience, and improve the overall quality of life in rural areas. In rural North Dakota, sustainable practices play a crucial role in maintaining the balance between economic growth and environmental conservation.

The importance of sustainability in rural areas lies in preserving natural resources, promoting local economies, and ensuring the long-term viability of communities. Sustainable development practices, such as responsible agriculture and renewable energy initiatives, contribute to minimizing environmental impact while supporting the economic well-being of rural communities.

In particular, embracing sustainable agriculture methods helps protect soil health, water quality, and biodiversity, essential factors for the prosperity of rural areas. Additionally, the integration of renewable energy sources not only reduces carbon footprints but also offers opportunities for economic diversification, creating new jobs and income streams for residents.

By prioritizing sustainability, North Dakota can build a resilient and vibrant rural landscape that thrives economically while respecting the environment. This approach aligns with the long-term goals of Vision West North Dakota and the mission of our organization.

Free to use image by Google Deepmind

Here are some upcoming projects in other parts of the state:

1. Grand Farm (Casselton): Merging technology and agriculture with a $160 million federal grant.
   Grand Farm is building an Innovation Campus just west of Casselton, North Dakota. The campus is being designed in a way where growers, industry professionals, and researchers will collaborate to deliver innovative solutions and to demonstrate and research the latest in agriculture technology.

   The Innovation Shop will be the first building constructed and is estimated to open in May 2024.

2. Packet Digital (Fargo): A $60 million facility for drone energy via Battery Cell Plant.

   Packet Digital is a Fargo, ND-based engineering company focusing on battery and power system development for autonomous systems, with an emphasis on Unmanned Aerial Systems (UAS). With decades of experience in battery design, battery management systems, and embedded programming, Packet Digital can solve the toughest challenges.

   What are Smart Batteries?

   A true smart battery pairs cells with electronics that provide real-time monitoring and reporting of critical performance data. This data provides important information to your flight computer, allowing it to make decisions in flight, ensuring safe and reliable operation, and early notice of developing problems. It also communicates with the charging system to ensure safe charging and prevent catastrophic failures. Smart batteries can also ensure safe storage and shipping by de-energizing the outputs when not attached to a UAS or charger.

3. GrandSKY (Grand Forks): A $500 million UAS-focused business park.
   GrandSKY is a partnership among the United States Air Force, the County of Grand Forks, and GrandSKY Development, which is the nation's first commercial UAS business and aviation park. It is adjacent to Grand Forks Air Force Base 20 miles west of Grand Forks. GrandSKY recently launched the first-of-its-kind weather forecasting system at the Grand Forks Air Force Base in North Dakota.

   According to Deb Seminary at GrandSKY, the Meteodrone will be nine times more granular than even the best available government or commercial services. It will measure hyper-accurate and exact real-time micro-weather readings. This advanced micro-weather service will produce a 1km resolution weather model that will feed into GrandSKY’s Weather Operation Center user interface.

   The partnership between GrandSKY, TruWeather Solutions, and Meteomatics will increase flight time for commercial and military drones flying out of GrandSKY and fill a gap in weather data gathering.

4. Dakota Lithium Materials (Grand Forks): Advancing lithium-ion battery production at UND.

   Dakota lithium batteries have twice the power of traditional batteries, are half the weight, charge five times faster, and Dakota Lithium lasts 4x longer than traditional batteries, providing lasting value for our customers, and reducing e-waste and the impact on our planet.

5. NextEra Energy Resources (Jamestown): A $1.3 billion project for a hydrogen facility that makes renewable energy-based fertilizer.

   NextEra Energy Resources is America’s clean energy leader and the world’s largest producer of wind and solar energy. NextEra’s pioneered technologies transformed the industry. Their Real Zero Blueprint is the most ambitious target set by any U.S. utility or power generator. NextEra Energy Resources’ renewables portfolio spans virtually the entire U.S., helping businesses and customers across the country meet renewable portfolio standards (RPS) and their emissions reduction goals.

6. Green Bison (Spiritwood): North Dakota’s first ever fully dedicated soybean crushing plant and refinery for renewable diesel fuel.

   The Green Bison Soybean Processing plant in Spiritwood, ND opened in September 2023. As a joint venture between ADM (75% owner) and Marathon Petroleum (25% owner), it is North Dakota’s first dedicated soybean crushing plant and refinery and will help meet the need for renewable diesel fuel. The facility will have a processing capacity of 150,000 bushels of soybeans per day. That’s a significant source of new demand for soybeans in the region.

7. Applied Digital Data Center (Jamestown and Ellendale): Investing $2.2 billion over 10 years in large data centers for crypto-mining and high-performance computing.

   A designer, builder, and operator of next-generation digital infrastructure that is designed for High-Performance Computing (“HPC”) applications, recently energized its 180-megawatt (MW) facility in Ellendale, North Dakota. The Company broke ground on the facility on September 8, 2022, and began operating the new site only six months after initial work began. The Ellendale next-generation data center marks the second facility within North Dakota for Applied Digital following the successful 100MW facility in Jamestown that was energized in 2022.   

   Once fully energized, this location will bring the Company to 280MW of total hosting capacity across its facilities in North Dakota, all of which are contracted out to customers on multi-year terms. Applied Digital expects to hire approximately 45 community members from Ellendale and surrounding areas to operate the facility.  

8. Gov Burgum 2030 Carbon Neutral Vision. Gov. Doug Burgum's challenge to get North Dakota to economy-wide carbon neutrality by 2030 landed as a surprise for environmentalists and fossil fuel leaders alike. According to INFORUM, Much of the vision fits into steps the state is already taking, measures that Burgum has said could turn North Dakota into a vast carbon sink for the rest of the region.

   According to the state's Energy and Environmental Resource Center, North Dakota's distinctive geology can store between 76 billion and 252 billion tons of carbon dioxide, potential that Burgum said could be used to absorb the carbon output of other states. With the higher end of that storage range, Burgum noted, North Dakota could store the entire country’s carbon output for fifty years.