North Dakota plans to put energy into overdrive

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North Dakota's energy development could go from four-wheel drive to overdrive if the work of a new commission puts its resources together.

Energy production from oil, wind, ethanol and biodiesel has shifted in some cases from nowhere into high gear in just the last five years. An Energy Policy Commission appointed by Gov. John Hoeven met Tuesday to take it to the next level.

Hoeven said he wants the commission to take big broad steps toward a future of energy parks, where one energy project can piggyback another. An example is Great River Energy near Underwood, where coal-fired steam heat from a power plant is used to make ethanol.

The commission has 14 members from across the energy spectrum and expects to meet 10 times around the state before presenting a white paper report prior to the next Legislative session.

The commission can build on two existing and four proposed ethanol plants, a new biodiesel plant, 900 megawatts of new wind power built and projected, oil and natural gas production climbing toward historic levels, and four major coal projects under development.

It's charged with looking at ways state policies, incentives and perhaps dollars can make a difference and make recommendations to state leadership. An existing energy plan, developed in 2002, will be the building block to new projects, Hoeven said.

Randy Schneider, chairman of the state's Ethanol Producer's Association, said the only period of state history more exciting was statehood itself.

Schneider said the dried corn leftover from ethanol could spawn a growing beef feeder and dairy industry.

"Ethanol is not an end, but a means to an end," he said. "Imagination is our only limitation."

Moving energy produced in North Dakota out of North Dakota will be a key factor to any new project. Pipelines are full and the power transmission system is nearing capacity.

Another challenge will be solving the greenhouse gas emission issues that hamper coal projects.

Coal officials have told the state that they need to know what they're aiming for, specifically with carbon dioxide, before they can fully commit to the billion-dollar investment of a new coal-fired power plant.

There's talk CO2 will be regulated, but the technology to take it out of the power plant's emission stack, is still only in infancy.

Dale Niezwaag, of Basin Electric Power Cooperative, said Basin received six proposals from technology companies this month and by December will pick one for a pilot study to remove the CO2 from its gas stream at Antelope Valley Station.

Once it can isolate the gas, it will be added to CO2 from Basin's synthetic gas plant that's piped to oil fields where it's injected to enhance oil recovery. The win-win is that oil production goes up and the CO2 goes underground forever.

New coal development has lagged behind other energy production because the dollars are so huge and the environmental challenges are more severe.

Sen. Rick Wardner, R-Dickinson, who's chairing a Legislative interim Energy Development and Transmission committee, said moving energy to market is key.

"If we do all this and we can't get it out, it doesn't do much good," he said.

Sandi Tabor, acting director of the state's Transmission Authority, said a move to get federal tax incentives and exemptions for electric transmission projects is making progress.

Hoeven said while energy development is accelerating at a rapid pace, "This is about the potential to do more.

"If we can finish even what we have here, that's billions of dollars in investment and thousands of jobs," Hoeven said.

(Reach reporter Lauren Donovan at 888-303-5511, or lauren@;westriv.com.)

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