Minnkota selected to continue forward in New ERA program

Minnkota Power Cooperative has been selected as one of 16 electric cooperatives across the nation to move forward in the U.S. Department of Agriculture’s New ERA program, federal officials announced on Sept. 5. Collectively, the cooperatives will have access to $7.3 billion in federal funding to advance projects that will reduce carbon emissions.

Although final approvals have not yet been granted, this New ERA investment would support Minnkota’s pursuit of the Project Tundra carbon capture initiative as well as the procurement of 370 megawatts of wind energy in North Dakota.

“As we enter one of the most transformational periods in our industry’s history, the New ERA program represents a positive opportunity for our membership and many others across rural America,” said Minnkota President and CEO Ma McLennan. “We are grateful to continue forward as we pursue development of Project Tundra – a bold carbon capture initiative in North Dakota – as well as the advancement of 370 megawatts of new wind energy resources in the state. New ERA helps not-for-profit cooperatives like Minnkota more cost-effectively decarbonize power supply portfolios, while retaining a reliable and resilient electric grid for the members we serve.”

The funding process was highly competitive, with electric cooperatives submitting 157 letters of interest for 750 projects in 2023. If each of those projects were funded, it would require at least twice the amount of funding available through the New ERA program.

The announcement was made during a Sept. 5 visit to Wisconsin by President Joe Biden and USDA Secretary Tom Vilsack. The New ERA funding opportunity was part of the Inflation Reduction Act, which passed in 2022 and provided $9.7 billion in budget authority specifically for electric cooperatives to develop clean energy systems. Grants, loans or both will be provided for projects that achieve the greatest reduction in greenhouse gas emissions associated with rural electric systems. This includes the advancement of renewable energy, battery storage, carbon capture, nuclear and other projects that will lower greenhouse gas emissions and otherwise aid disadvantaged rural communities.

The New ERA program is touted as the largest investment in rural electrification since President Franklin Delano Roosevelt signed the Rural Electrification Act into law in 1936.