Members
of the North Dakota Industrial Commission (NDIC) received status reports
today from John Dwyer, president of the Lignite Energy Council, regarding
Lignite Vision 21 (LV 21) studies being conducted by three applicants that
have expressed interest in building a low-emissions, lignite-based
electric generating station in North Dakota.
Dwyer
told the commission that most of the preliminary feasibility studies –
including environmental, generation and transmission work – are now
complete and two out of three original applicants have expressed interest
in moving ahead to the engineering and permitting phase. The applicants
continuing are: Great Northern Power Development, a limited partnership
with coal reserves near Dickinson, North Dakota; and Montana-Dakota
Utilities Co., and Westmoreland Power, Inc., who are interested in jointly
developing a project at the former Gascoyne Mine site in southwestern
North Dakota.
A
third applicant, Great River Energy, has said that its immediate electric
generation needs can best be met with intermediate/mid-range and peaking
power near its load centers in Minnesota, rather than by adding baseload
power.
North
Dakota Gov. John Hoeven, who is chairman of the Industrial Commission, has
made energy development one of six pillars for growth in the state. Hoeven
said he is encouraged that two of the three projects are moving forward.
“I’m
excited about the economic possibilities that could result if one or more
new baseload power plants are sited in North Dakota,” Hoeven said.
“Developing our resources in an environmentally sound manner will not
only add good paying jobs but also allow our state to help meet the
nation’s growing energy demands.”
Ron
Tipton, chief executive officer of Montana-Dakota Utilities, and Chris
Seglem, Chairman of the Board, President & CEO of Westmoreland Coal
Company, said that the studies completed to-date indicate a strong need
for reliable, low cost power in the region.
“Our
customers and others in the region are demanding more electricity,”
Tipton said. “MDU and Westmoreland think it’s prudent to continue
investigating all generation sources that can efficiently satisfy these
needs.”
Jerry
Vaninetti, president of Great Northern Properties, echoed Tipton’s
comments saying that the studies completed to date are also encouraging.
"Our
studies show real potential for operating a competitive power plant that
is nothing short of the finest coal-based generating station in the
world,” Vaninetti said. “We would be using advanced generation
technologies that have been developed, tested and proven viable since the
last coal-based plant in North Dakota went on line nearly 20 years ago.”
In
delivering the status report, Dwyer noted that much progress has been made
relating to environmental challenges that had earlier looked to be
impediments for the LV 21 Program.
Attorney
General Wayne Stenehjem, and Industrial Commission member, said he
believes the environmental challenges facing new coal-based plants can be
met. “The energy industry in our state has proven itself to be a good
steward of our land, water and skies,” he said. “The proposed projects
similarly would be among the cleanest in the nation.”
Another
hurdle involves adequate transmission capacity. Dwyer said that much of
the electricity from any new generation source in the state will likely
flow not only to North Dakotans but also to customers in neighboring
states.
“We
have identified several transmission routes that end the current
bottleneck situation – especially between North Dakota and Minnesota,”
Dwyer said. “However, several transmission issues are in flux and
building additional transmission facilities carries financial uncertainty.
It’s imperative these issues be resolved in a timely fashion by the
Federal Energy Regulatory Commission and multi-state transmission planning
entities.”
Roger
Johnson, Agriculture Commissioner and also an Industrial Commission
member, noted that both wind energy interests and coal-based power plants
will require additional transmission capacity if significant amounts of
generating capacity in the state are to occur. “Resolving the
transmission constraints is necessary and will require great cooperation
of both wind energy proponents and LV 21 applicants to get it
accomplished,” he said.
Jim
Van Epps, president and chief executive officer of Great River Energy,
said his company began the feasibility studies because of North Dakota’s
excellent lignite reserves, quality workforce and favorable business
climate.
“At
this time, it appears that an intermediate or peaking generation source
would better meet our needs,” Van Epps said. “This, however, doesn’t
preclude us from looking at another lignite-based plant at some point in
our future.”
The
Lignite Vision 21 Program is a partnership between state and industry and
is designed to encourage construction of a baseload power plant in North
Dakota that is available to produce power in the 2008-2010 timeframe. As
proposed, the LV21 Program is designed to meet growing regional electrical
needs and revitalize the lignite industry by producing 3 million tons of
coal annually, creating 1,300 new jobs and generating an additional $6
million annually in tax revenue.
The
LV21 Program is overseen by the NDIC, consisting of Gov. John Hoeven,
Attorney General Wayne Stenehjem and Agriculture Commissioner Roger
Johnson.
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