Peace Garden News

BISMARCK – U.S. Senator Kevin Cramer (R-ND), member of the Senate Environment and Public Works (EPW) Committee, announced Minnkota Power Cooperative, TC Energy, Mitsubishi Heavy Industries (MHI), Kiewit, and its affiliates have moved Project Tundra into its final stage of development.

As one of the world’s largest carbon capture projects, Project Tundra is designed to capture up to 4 million metric tons of CO2 annually from the coal-based Milton R. Young Station. The CO2 will be safely and permanently stored more than a mile underground in deep geologic formations. Minnkota has the largest fully permitted CO2 storage facility in the United States and is pursuing additional CO2 storage opportunities near the Young Station.

“Today’s announcement from Minnkota on Project Tundra is another exciting step toward scaling up carbon capture in North Dakota,” said Senator Cramer. “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.”

“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.” 

Minnkota will lead project development activities at the Milton R. Young Station power plant, and TC Energy will lead commercialization activities, including qualifying for federal 45Q tax credits. Project construction and operations would primarily be funded through 45Q, which provides $85 per ton of CO2 permanently stored underground. TC Energy and Minnkota will fund the remaining development costs until construction begins in 2024. TC Energy will assume a majority ownership share of the project through a series of joint ventures. Project Tundra’a financial closures and construction are anticipated in early 2024. 

Background:

In May, project participants submitted applications for a $350 million grant through the U.S. Department of Energy’s Carbon Capture Demonstration Program and a $150 million loan through the state of North Dakota’s Clean Sustainability Energy Authority Fund.

Original source can be found here.