The president of Rainbow Energy told attendees at this week's meeting of the Lignite Energy Council that the company's acquisition of Coal Creek Station was "a roller coaster to say the least," but he has high hopes for the plant and the future of the lignite industry.

Stacy Tschider said industry and government leadership in North Dakota made the purchase of the 1,151-megawatt coal plant from Great River Energy possible.

"I cannot say enough about being from North Dakota, this is actually not happening in any other state," Tschider said. "From the top down, there are hundreds and hundreds and hundreds of people to thank for getting us across the finish line." 

Tschider stressed the importance of the relationship with the adjacent Falkirk Mine, owned by North American Coal, which supplies lignite to Coal Creek Station. He said the plant currently burns about 8 million tons per year, and he would like to see that increase to 9 million tons as the company installs equipment at the plant to capture its carbon dioxide emissions. Tschider said the company's business plan "is not just putting a bandaid on Coal Creek."

He also stressed Rainbow's ongoing relationship with Great River Energy, which has executed a purchase power agreement to buy electricity which Tschider said is vital for the Minneapolis area. He said the company's plans to monetize the 436-mile direct current transmission line that carries power from the plant to the Twin Cities area will involve the addition of wind generation. 

"As it sits right now there's available capacity on the line, but as we move towards a combination of carbon capture and having load at the site from the data (centers), we're going to have more transmission available," Tschider said. "We have to make sure that we monetize that transmission line, so when I look at this project, I say we have to extract as much value as we can on all aspects, and that includes the plant, the transmission line and the data."

Tschider said Rainbow is working with wind developers to secure 400 megawatts of wind generation which would be transmitted on the DC line as transmission capacity becomes available. He emphasized that the wind power would not displace any existing coal-fired generation in North Dakota.

The coal plant contributes $1.5 billion annually to the state's economy, and Tschider said with planned coal plant retirements in the coming years, Coal Creek Station will become even more valuable.

"We're running toward fossil fuels," he said. "A friend of mine said you're probably the only company buying a coal plant right now, and I said there should be more out there because of the importance of baseload generation."

Tschider pointed out there have been warning signs the past few years of the risk to grid reliability by too much reliance on intermittent wind and solar generation. He said with additional coal plant retirements, something is going to have to fill the gap between supply and demand.

"If you think you're gonna do it from wind, if you think you're gonna do it from solar, if you're gonna think you're going to get it from batteries, that is not going to happen," Tschider said.

The relative stability of coal prices also boosts the ongoing operation of Coal Creek Station. Tschider noted that natural gas, which has in recent years been replacing coal generation, has experienced significant price volatility in the past 12 months. He said that hurts its competitiveness and makes coal more attractive. Tschider said the recent increase in the 45Q tax credit to $85 per ton for CO2 capture "moves the needle, makes the project real, viable for the future."

"I didn't want this plant to just be limping along, I want the next chapter to be a brighter future," Tschider said. "That's exactly what we're going to do with our carbon capture, with our wind, and we also do have some data (centers) that will be placed at the plant."

A philosopher and author noted for his advocacy for fossil fuels said there is no "energy transition" happening in America. Instead he said policy makers are "playing reliability chicken."

Alex Epstein, who has written two books promoting the contribution of fossil fuels to human civilization, said discussions about the potential dangers associated with climate change almost always ignore the benefits delivered by coal, oil and natural gas.

"The world is filled with fossil fuel benefit deniers," Epstein said during his speech this week at the annual meeting of the Lignite Energy Council.

Epstein listed what he described as "irrefutable energy facts," which he said must be considered in the context of discussions about climate change. He maintains that the world needs to use more fossil fuels, not less. In his latest book, Fossil Future: Why Global Human Flourishing Requires More Oil, Coal, and Natural Gas--Not Less, Epstein makes the case by detailing fossil fuel benefits such as their use in oil-powered equipment and natural gas fertilizer which are crucial to feeding 8 billion people. He said most discussions ignore the benefits, instead focusing on negative side-effects.

He also described what he calls “climate mastery benefits” of fossil fuels, which have allowed humanity to overcome climate danger with fossil-fueled cooling, heating and irrigation, which neutralize negative weather impacts.

"That's like a report on polio omitting the polio vaccine," he quipped.

Epstein said policy makers also need to consider the positive side effects of climate change, not just negative. He said rising carbon dioxide concentrations may lead to more heatwaves, but that also means there will fewer cold deaths. And he said most "experts" ignore huge positives such asglobal greening effects and higher crop yields with more CO2. Instead, people like Al Gore mislead the public with catastrophic forecasts of 20-foot rises in sea level. 

Epstein also cited five undeniable benefits of fossil fuels: 
1. Cost-effective energy is essential to human flourishing
2. The world needs much more energy
3. Fossil fuels are uniquely cost-effective
4. Unreliable solar and wind are failing to replace fossil fuels
5. Fossil fuels provide an incredible climate mastery ability

Regarding the current ESG movement which discourages investment in fossil fuels, leading to the premature retirement of baseload generation assets with no viable replacement, Epstein doesn't mince words.

"Rapidly eliminating fossil fuels is mass murder," he said.

Epstein has developed numerous speaking points which are available free to the public at energytalkingpoints.com.

A group of North Dakota legislators led by Mott Senator Don Schaible announced a plan this week to introduce legislation to reduce property taxes by about 25 percent.

Schaible said the bill would increase the state's share of the cost of K-12 education to 85 percent. The state currently picks up about 72 percent of the cost through the Foundation Aid formula. He said the bill would also require school districts to levy taxes based on actual dollars rather then mills. Schaible said the change would make property taxation more transparent, noting that higher valuations lead to tax increases even though mill levies remain the same.

Click here to listen to Schaible's comments.

The estimated price tag of the bill is $340 million per biennium, which the legislators propose would primarily come from Legacy Fund earnings.

Casselton Senator Mark Weber said he expects broad public support for the proposal because his constituents complain much more about property taxes than the state income tax they pay.

Click here to listen to Weber's comments.

Tioga Senator David Rust said the legislation would reduce by half the 60 mills that school districts are now required to levy. He said the bill reaffirms the state's commitment to fund K-12 education.

Click here to listen to Rust's comments.

The proposed legislation would only apply to school district property taxes, not city or county tax levies, parks or other political subdivisions. It would also freeze property valuations statewide for two years.

Three North Dakota legislators speaking as part of panel discussion on Legacy Fund earnings priorities offered several different ideas for use of the hundreds of millions of dollars being generated by investments of the $8 billion fund.

During this week's Policy Summit sponsored by the Greater North Dakota Chamber, Fargo Senator Ron Sorvaag said some of his legislative colleagues have focused on investing the money, including a bill last session (HB 1425) that directed up to 20 percent of the fund be invested in North Dakota. But Sorvaag pointed out the state has a lot of infrastructure needs including roads, water projects and building needs, which he said should also be considered investments.

Click here to listen to Sorvaag's comments.

Grand Forks Rep. Corey Mock, who has suggested the legislature should consider re-investing more of the earnings in the Legacy Fund principal, recalled a study that show if all earnings were reinvested for 40 years, the fund balance would have grown to $143 billion. Mock concedes it's not realistic to expect all the funds to be reinvested, but he said if the fund did reach that amount, it would generate earnings roughly equivalent to the current state budget. 

Click here to listen to Mock's comments.

Dickinson Rep. Mike Lefor suggested some portion of Legacy Fund earnings be earmarked toward patching up the state's Public Employees Retirement System. Lefor said the fund had a surplus in the year 2000, but today PERS is about $1.4 billion in arrears, covering only 72 percent of its long-term obligations. He said it creates a potential future disaster for the state's budget.

Click here to listen to Lefor's comments.

Lefor said the new generation of employees are moving, not staying long term, so they want the portability of a retirement plan that can move with them.

The 2021 Legislature enacted a bill (HB 1380), originally sponsored by Lefor, to establish guidelines for future uses of Legacy Fund earnings. Known as the "streams bill," the original version identified about a dozen categories including percentages devoted to bond repayment, highway funding, school construction loans, an innovation loan fund, the public employee retirement system, career and technical education, clean sustainable energy, housing incentives and economic diversification and research. The version ultimately agreed upon earmarked dollar amounts instead of percentages, and only specifically targeted $150 million for bond repayment and $60 million to the highway fund.

Individuals planning to attend the annual meeting of the Western Dakota Energy Association are urged to do so soon because the earlybird registration fee expires at midnight tonight.

The earlybird fee is $125.00. The rate will be $150 for those registering after that date or at the meeting, which will be held October 12-13 at the Rough Rider Center in Watford City. Click here to register. Sponsorship opportunities are also available at this link.

WDEA has assembled a high caliber agenda for this year's event, featuring an opening day lineup that includes a presentation and musical performance by Watford City singer/songwriter/author Jesse Veeder Scofield. Her remarks will wrap up an afternoon that will also include Lynn Helms' status report on North Dakota oil production, an update on pipeline takeaway capacity and efforts to develop new uses for natural gas, updates regarding LoadPass Permits and Wise Roads, and the latest energy research at the Energy and Environmental Research Center. Opening day concludes with a networking social that will include a brief update on plans to widen Highway 85 to four lanes between Watford City and Interstate 94.

Day Two features a preview of the 2022 General Election, a discussion of electric reliability concerns, a report on development of the Bakken Area Skills Center, an update on efforts to provide a solution for TENORM disposal in North Dakota, a report on interim legislative activity, a panel of legislators and school administrators who will discuss education issues, and an update on industry efforts to preserve and enhance the state's lignite industry.

The meeting concludes with election of the WDEA Executive Committee. Board members up for election who are eligible to serve an additional three-year term include Stanley City Councilman Zach Gaaskjolen and Alexander Superintendent Leslie Bieber. WDEA members will also choose a new county representative to the Executive Committee to replace Daryl Dukart, who is not seeking re-election to the Dunn County Commission. There is also currently a vacant board position to be filled by an education representative from the oil-producing counties.

Click here to register. Click here to see the tentative agenda. Click here for the online sponsorship/exhibitor page. Click here for the sponsor/exhibit form.

Governor Doug Burgum has announced that the public input period for the recently announced Red Tape Reduction Working Group has been reopened and will accept ideas from citizens through October 10.

The initial public input period closed September 5 but was reopened based on feedback from the public and state-level boards and commissions. Members of the public may continue to submit their ideas via the Governor’s Office website. 

Burgum issued the executive order creating the Red Tape Reduction Working Group to bolster ongoing efforts to make state government more efficient, effective and nimble on August 18. View the order here. 

In addition to accepting public input, the working group is collaborating across all cabinet agencies and participating non-cabinet agencies to review regulations, restrictions, requirements, red tape and policy that has become outdated, burdensome and inefficient.

The working group will review recommendations for changes to the North Dakota Century Code and state Administrative Code and prepare a comprehensive Red Tape Reduction Act for consideration by the 2023 Legislature.

The U.S. Department of Transportation’s Pipeline and Hazardous Materials Safety Administration (PHMSA) announced this week it is awarding more than $75.6 million in grants to fund projects and activities to improve the safety of pipelines.

The grants will support the jobs of state pipeline inspectors, important pipeline safety training and educational programs, and the advancement of pipeline safety technologies. Recipients include state pipeline safety programs, state One-Call and damage prevention centers, community and non-profit organizations, as well as six universities.

Five grants, totaling just over $2.6 million were awarded in North Dakota. Announcement of the state’s recipients was made by Senator Kevin Cramer. 

North Dakota State University received $1,000,000 to develop and implement a holistic framework for an AI powered, platform-forward software tool which will accelerate the transition of existing gas pipelines for hydrogen transport. NDSU also received an additional $1,000,000 to develop and test the feasibility of an all-in-one, multifunctional, high-performance cured-in-place pipe structural liner which is self-healing and self-sensing. 

The North Dakota Public Service Commission received $354,635 to support pipeline safety programs. The PSC was also awarded $46,770 to improve various aspects of North Dakota’s damage prevention programs. And the ND Department of Emergency Services received $198,708 to design and implement planning and training programs which enhance response to hazardous materials transportation incidents.

View the full list of grant descriptions and recipients here.

The University of Mary held a ceremony on the campus in Bismarck last week to officially cut the ribbon on its new state-of-the-art engineering school named for Bakken pioneer and UMary donor Harold Hamm.

The new Hamm School of Engineering opened offering electrical, civil, and mechanical engineering within a space of 15,650 square feet. The school’s popularity, success and demand prompted an additional 3,900 square feet of space be added to the south end of the building that opened at the start of the new 2022 academic year.

Flanked by President Monsignor James Shea, North Dakota Governor Doug Burgum, Senator Kevin Cramer, faculty, staff, students, benefactors, and dignitaries, Hamm officially christened the new space that welcomes students and guests with a chiseled ‘Hamm School of Engineering’ sign inside its courtyard area.

“I know from speaking with the leadership of the University of Mary that a great deal of thought and research has gone into designing and building this facility for students so that they can receive world-class, hands-on education as both engineers and leaders in business and industry,” Hamm said. “And we can see that this approach is not only working but thriving, the University of Mary’s engineering graduates are being sought after even before graduation to help solve the engineering shortage in North Dakota and throughout the US."

In February, the Harold Hamm Foundation donated $10 million towards naming the Hamm School of Engineering. Hamm's company, Continental Resources, specifically earmarked an additional $2 million to endow a Chair of Engineering, naming it the “Continental Resources | Monsignor James Shea Chair of Engineering.”

The Hamm School of Engineering has witnessed a steady rise in enrollment, from just a handful of students when it began in the fall of 2015, to nearly 200 in 2022. It’s well on its way to its goal of 400 students by 2030 as outlined in the Vision 2030 Strategic Plan and current capital campaign. By 2030, the University of Mary plans to graduate 50 or more engineers annually.

A pair of UND researchers have both received federal grants to investigate the possibilities of carbon-neutral energy production. The grants total more than $2.5 million in research funding, with the majority from the U.S. Department of Energy.

Junior Nasah, major project manager with UND’s Institute for Energy Studies (IES), received $2.12 million to study the feasibility of using various forms of renewable biomass to generate carbon-neutral hydrogen for energy production. Hydrogen produced from biomass could also be used to create fertilizer for agricultural purposes.

Johannes Van der Watt, a research engineer also with IES, received $400,000 to investigate using renewable biogas to remediate large piles of coal waste. That would happen through the production of “carbon-negative” electricity, and would pave the way for future regional clean energy efforts when that remediation is complete.

Both research projects rely on renewable sources of biomass, and according to Nasah, North Dakota has plenty. Biomass comes in multiple forms, including farm or municipal waste, lawn or plant clippings, downed trees and animal manure. When they break down, biomass sources such as these release methane, a more potent greenhouse gas than CO2. Municipalities must also pay for the removal and storage of such waste, which means the waste-to-energy process may save money as well as deliver environmental benefits.

Plans for Nasah’s research include transforming biomass into syngas, the “synthesis gas” that is a mix of hydrogen and carbon monoxide. A further chemical process will refine that gas into pure hydrogen, which may be burned as a fuel for power generation or used to make fertilizer. Nasah said the system could be adapted for farming operations in the state to do both.

A key component of the project is its scale, which enables clean-power generation to be brought to where it is needed. Nasah said he is looking to be able to produce between 1-5 tons of hydrogen per day.

“A big part of what we are claiming is our conversion step can go from biomass to hydrogen to power at a low cost, to where we can actually make this project economical,” Nasah said.

Similarly, Van der Watt is also investigating the use of biomass for coal waste deposit remediation. Coal waste, a fine powder mixed with soil and located primarily in eastern US coal producing regions, is left over after the commercial mining process. Biogas generated from renewable biomass sources may be able to be co-combusted with the waste for power generation.

The goal is two-fold: remediate coal waste from a region by turning it into energy, then using the infrastructure set up to continue to burn biogas as a carbon-neutral energy source.

“Those two things are really important today, and we have a way to connect those two to make sure that we utilize the resources we have at hand, and use them wisely,” Van der Watt said.

Both research projects are also looking at ways to capture CO2 that will be produced from the energy generation, and plans include either storing it underground or finding a use for it in a local market. One such use, Nasah said, could be to sell the byproduct gas to a brewery or a similar business.

Marathon Petroleum, Denbury Resources and Enerplus were recognized by the North Dakota Petroleum Council during an awards ceremony at last week's annual meeting in Watford City.

This awards include:

Excellence in Safety
Denbury Resources received the award for completing its CCA CO2 Installation Project without a single OSHA recordable incident. That's remarkable given the size, scale, and duration of this project. Denbury’s project included the installation of over 130 miles of pipe across Montana and North Dakota. At peak activity, there were as many as 750 contractors working. The pipeline crossed over 400 other pipelines and flowlines, and over 600,000 manhours were worked throughout the entire project.

Excellence in Community Engagement
Marathon Petroleum Corporation (MPC) received the award for its community investment strategy. It centered around strengthening communities where the company operates and helping improve lives through volunteering and monetary contributions. From 2018-2021, the MPC team contributed nearly 2,000 volunteer hours in North Dakota, as well as more than $1.1 million to organizations focused on strengthening youth education and promoting career development.

Excellence in Environmental Stewardship
Enerplus received the award for its Emissions Reduction Budget. As part of its inaugural ESG report in 2020, Enerplus supported seven employee-generated emission reduction initiatives, creating an estimated year-end reduction of nearly 200,000 metric tons of CO2 equivalent.

North Dakota Department of Transportation officials have scheduled a public input meeting Sunday, October 2, to discuss proposed improvements in Medora.

One of the meeting topics will be discussion of a study to evaluate access routes to the planned Theodore Roosevelt Presidential Library and Amphitheater. The study will be coordinated with the Medora Area Planning Study for public and stakeholder input. 

NDDOT officials will discuss the transportation planning study evaluating the long-term serviceability of Pacific Avenue, connecting accesses, as well as the two Interstate 94 interchanges that provide motorists access to Medora.

NDDOT representatives and Civil Science, Inc. will be on hand to answer questions and discuss concerns at the meeting, which is scheduled from 3:30 to 5:30 p.m. on Sunday, October 2, at the Medora Community Center, 465 Pacific Ave., in Medora.  

Bismarck State College's National Energy Center of Excellence will be the host site for the 14th Annual Great Plains and EmPower ND Energy Conference set for Monday, October 10.

The conference agenda includes a wealth of timely energy topics, kicking off with a discussion led by Commerce Commissioner Josh Teigen of energy hub projects and federal funding opportunities.

A panel discussion entitled, All of the Above: The Big Picture in the State and National Energy Policy, will include the three members of the state's Congressional delegation along with Lt. Governor Brent Sanford and ND Petroleum Council President Ron Ness. 

The morning session also features presentations about ongoing carbon dioxide capture efforts including Project Tundra, Red Trail Energy's project in Richardton, and Summit Carbon Solutions' proposed CO2 pipeline.

The afternoon session opens with a panel discussion on Electric Reliability. Participants include former FERC and PSC Commissioner Tony Clark, ND Transmission Authority Director John Weeda and Tom Butz, utility planner with Minnesota Power

The discussion will be followed by another panel on Data Mining Impacts in the Energy Industry, and the program will conclude with discussion of Technology and Innovations that Impact the Energy Industry. 

Click here to learn more or to register.