August 2023 Highline Notes Editorial

Project Tundra moves into the final development stage

Marshal Albright, president/CEO Cass County Electric Cooperative

Developing a power supply strategy that ensures reliable, affordable and sustainable electricity is no small feat in today’s world. At Cass County Electric Cooperative, we work closely with our power supplier, Minnkota Power Cooperative, to ensure we’re taking the right steps forward as our industry continues through rapid change.

Currently, there is no bigger effort in the power supply space than Project Tundra. This project would retrofit Minnkota’s primary coal-based power plant in North Dakota with innovative technologies to capture approximately 4 million metric tons of CO2 annually and safely store it more than one mile underground.

In June, Project Tundra reached a significant milestone with the completion of agreements with TC Energy, Mitsubishi Heavy Industries (MHI) and Kiewit, which will move the project into its final stage of development. The joint effort combines decades of energy industry expertise and strengthens the strategic vision to build one of the world’s largest carbon capture projects in North Dakota.

“If our organizations are successful in making this historic project a reality, Minnkota will be one of the fastest decarbonizing utilities in the country while maintaining stable electric rates and a reliable, resilient power supply,” said Mac McLennan, Minnkota President and CEO. “By working together, we aim to advance carbon capture technology in a way that can serve as a blueprint for our state, nation, and world to meet ambitious decarbonization goals.”

Under the arrangements, Minnkota will continue to lead project development activities. TC Energy will be the project commercialization lead, which includes qualifying the project for federal 45Q tax credits. Return on project construction and operation costs would be recouped through 45Q, which provides $85 per ton of CO2 permanently stored underground.

In addition, the project participants submitted applications in May for a $350 million grant through the U.S. Department of Energy and a $150 million loan through the state of North Dakota’s Clean Sustainable Energy Authority (CSEA). The project currently has approval for a $100 million CSEA loan.

MHI is the lead technology provider for the project and has successfully deployed more than a dozen commercial CO2 capture projects globally since 1999. Kiewit, an international construction and engineering firm, will construct the project.

“Our industry-leading team has guided this project through a global pandemic, record inflation, and unprecedented supply chain constraints,” McLennan said. “Through those challenges, we have received outstanding support from the community of Center, Oliver County, and the state of North Dakota. None of this would be possible without their commitment and vision.”

Cass County Electric Cooperative remains supportive of Project Tundra. There is still much work ahead of Minnkota and its members to determine if the project will move forward into construction. However, these agreements certainly provide optimism for the project’s future. We will continue to keep Cass County Electric members updated on project developments and milestones in the months ahead. A final decision on Project Tundra is anticipated by the Minnkota board of directors in the first half of 2024.

Below are comments from North Dakota’s political leaders following the Project Tundra announcement.
North Dakota Governor Doug Burgum: “Bringing together the considerable expertise and resources of these industry leaders is a huge momentum boost for the project and bodes well for its future. The pursuit of innovation over regulation continues to be a catalyst for capital investment in North Dakota. This project is a shining example of how industries can reduce emissions while investing in baseload generation to preserve reliable, low-cost energy for consumers. It also supports our state’s industries, which provide thousands of good-paying jobs and economic development that generates millions in tax revenue for our state and local governments.”

Senator John Hoeven: “Minnkota’s project is leading the nation and world in developing a major carbon capture and storage project on a traditional coal-fired power plant. We’ve led the way in reducing SOx, NOx and mercury emissions, and now we’re leading the technology development on carbon capture. We have put in place research and development funding, loan guarantees and the 45Q tax credit so the company can move forward and make sure the next generation of coal-fired power is here today and for future generations.”

Senator Kevin Cramer: “Today’s announcement from Minnkota on Project Tundra is another exciting step toward scaling up carbon capture in North Dakota. Congratulations to Minnkota, TC Energy, Mitsubishi, Kiewit, and its affiliate team on their partnership and moving to the final stage of development. I look forward to North Dakota’s historic and continued leadership in CCUS technology.”

Representative Kelly Armstrong: “North Dakota is at the forefront of carbon capture technology. It’s hard to think of a project that’s a better example of this than Project Tundra. I’m glad to see it move forward in our goal of making sure our state’s abundant resources continue to be utilized for generations to come.”