News Releases for August 2005
August 9, 2005
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Hoeven Says Mou For Coal-To-Liquid Plant Moves Energy Park Concept Forward
BISMARCK, N.D. - Gov. John Hoeven today joined Headwaters, Inc., a Utah based energy company, to announce it has completed a non-binding Memorandum of Understanding with Great River Energy, North American Coal Corp. and Falkirk Mining Co. to build a potential coal-to-liquid fuels project in North Dakota. The project could mean an initial investment for the state of $750 million, and up to $3 billion over time, as well as hundreds of jobs.
"We have worked for nearly two years to cultivate the concept of an Energy Park with Headwaters, Great River Energy and Falkirk Mining, and today's announcement represents a large step forward for the concept," Hoeven said. "Part of our effort was realized in March when we announced a partnership between Headwaters and Great River Energy to build a 50-million barrel per year ethanol plant, and now we are taking the next stride by developing our enormous potential for coal-to-liquid fuel production."
More than a year ago, Hoeven met with Headwaters Vice President John Ward and other company officials to discuss the concept of an "Energy Park," a facility that would collocate conventional coal and alternative fuel facilities so that they could take advantage of shared resources. That concept was first realized this spring, when Headwaters and Great River Energy announced the building of a new $65 million, 50 million gallon a year ethanol plant at Coal Creek Station in conjunction with the Falkirk Mining Co. The ethanol plant will use water and excess steam from the electrical generating plant.
Today's announcement of an MOU potentially to build a coal-to-liquid facility in the same complex brings a third element to the Energy Park. Coal-to-liquid technology, or coal liquefaction, is a process that converts coal to liquid fuels like petroleum, diesel, lubricating oils and other commercial products.
The news came at a Coal Creek Station press conference, which also rolled out a new coal drying process, based on research partly financed by the state of North Dakota, and the name and logo of the company's new ethanol plant, the companies and Hoeven announced last March.
Today's agreement represents an advance in the state's comprehensive energy development effort as part of Governor's and state Department of Commerce's mission to fully develop the state's multiple energy resources. With large resources in coal, oil and gas, wind and biofuels, North Dakota is the sixth largest energy producing and exporting states in the nation, and energy is one of the industry sectors that Hoeven has targeted for growth because of the state's natural advantage in that area.
"All three of the projects announced today – the new ethanol plant, the proposed liquefaction facility and the coal drying project – combine several of North Dakota's most important economic sectors into an integrated energy complex," Hoeven said. "Given our vast lignite resources, our experience in goal gasification and power generation, coupled with the production of clean, homegrown fuels, liquefaction is a natural for North Dakota."
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