Project Tundra, a plan to store carbon under North Dakota land, gets up to $350 million from federal grant

Dec. 14—GRAND FORKS — A proposed North Dakota project that's being spearheaded by a Grand Forks-based power company has received up to $350 million in federal funding.

The announcement first came late Thursday morning, Dec. 14, via the office of U.S. Sen. John Hoeven, R-N.D., who has been among those working to advance what's known as "Project Tundra," an effort to store carbon dioxide emissions under land in central North Dakota.

The project is being led by Minnkota Power Cooperative, based in Grand Forks.

Minnkota President and CEO Mac McLennan said he and the company are "grateful that the Department of Energy recognizes the importance of developing carbon-capture systems and is positioning the United States to be a leader in the advancement of this critical clean energy technology."

"Innovation is our path forward through the energy transition," McLennan said in a statement. "Project Tundra has the potential to help pave the way toward a future where electric grid reliability and environmental stewardship go hand in hand."

McLennan, in a follow-up interview with the Grand Forks Herald, noted that the funding is still considered "negotiable," so it's not entirely in the bag yet. He said "it has to be matched" and "has to be negotiated."

"It's not like they wrote us a $350 million check today," McLennan said, noting that "a phenomenal amount of work" remains to maximize the value of the funding.

However, that doesn't mean there isn't elation among the project's backers.

"We're very excited about the funding," McLennan said, adding that "it's the culmination of a lot of work on a lot of people's parts."

The DOE's announcement Thursday also should help boost confidence in the project, he said.

Hoeven calls Project Tundra a "vital component to the future of our coal-fired electric industry. North Dakota has led the way in reducing (various) emissions, and now with Project Tundra, we're leading the technology development of carbon capture and storage on a traditional coal-fired power plant," Hoeven said in a statement sent to the media Thursday morning.

"We started working on this in 2008 and are one of only two places in the country that can do it."

Hoeven and fellow Sen. Kevin Cramer, R-N.D., both have been boosters of the project.

In June, Cramer said

he looks forward to "North Dakota's historic and continued leadership in CCUS technology."

According to previous reporting by the Herald

, Project Tundra seeks to annually capture up to 4 million metric tons of carbon dioxide, which in turn will be stored more than a mile underground in geologic formations. It's a collaborative effort between energy partners Minnkota Power, TC Energy, Mitsubishi Heavy Industries and Kiewit. Minnkota, however, is the lead project developer.

Operations will take place at the coal-based Milton R. Young Power Station near Center, North Dakota. The estimated cost is approximately $1.4 billion, although that number could fluctuate due to changing prices prior to construction. Minnkota considers it a "high-level estimate" on the capital cost, with the number to be refined through the final development phase.

In September, McLennon said a final decision was still needed to move forward with the project, but he expects that decision will happen early next year.

"I would say today, you would have to have something go significantly wrong in the next several months for us not to be in a position to make a decision," he told the Grand Forks Herald at the time.

Thursday, he said "we're still on track to know by the end of March."

According to information provided by Minnkota on Thursday, "Project Tundra is currently in its final development phase. The completion of advanced engineering and design work on the carbon-capture facility is scheduled for the spring of 2024."

The funding announced Thursday morning comes from the Department of Energy's Carbon Capture Demonstration Projects Program, according to Hoeven's office.

"This federal investment along with the 45Q tax credit we have put in place will enable Minnkota and its partners to advance this project to help ensure the next generation of coal-fired power is here today and for future generations," Hoeven said.