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News Releases for January 2006

January 31, 2006
For further information, please Contact the Governor's Office

Hoeven Announces Second Round Of Centers Of Excellence Funding

BISMARCK, N.D. – Gov. John Hoeven today announced nearly $9 million in funding for six new economic development projects in the second round of awards by the Centers of Excellence Commission. The Centers Of Excellence funding will be met with up to $37 million in matching funds. Some of the projects not selected in the second round will have an opportunity to refine their applications for the next round of awards in April.

"The projects that have emerged out of our second round of awards highlight the enormous talent and entrepreneurial spirit we have in North Dakota," Hoeven said. "They will create new businesses opportunities and higher paying jobs - real career opportunities - for our people."

"In light of all the varied and interesting projects we reviewed, the selection process once again presented many outstanding proposals," said Lt. Gov. Jack Dalrymple, an advisor to the six-member Centers of Excellence Commission, which made the awards based on explicit criteria. "Those selected will advance our efforts to expand our economy and create new, high paying jobs."

The Centers of Excellence projects selected for approval are:

  • North Dakota State University - Agbiotechnology: Oilseed Development - The Agbiotechnology Center will make available conventional and/or deregulated biotechnology lines of soybeans and canola with unique oilseed traits that have potential as biofuels, specialty lubricants and health care products. The Center will develop and evaluate these lines for their use in biodiesel and special oils, conduct marketing, and new product strategies. Lines with commercial value will be released through suitable channels.
    Amount Approved: $2,000,000
    Amount of Match: $10,750,000
    Private Sector Partners: Monsanto, Archers Daniel Midland, and Dakota Skies Biodiesel
    Job Creation Projection: 2,472
  • North Dakota State University - Surface Protection - The NDSU Center for Surface Protection will perform market-driven research and development of surface protecting coatings that will enhance the durability of manufactured products and address industrial problems for companies located in North Dakota and elsewhere. Amount Approved: $1,000,000
    Amount of Match: $9,577,463
    Private Sector Partners: Gremada Industries, Tecton, Industrial Builders, Marvin Windows, ATMI, Micron, O'Day Equipment, Seashell Technology, International Technology Center, Technology Applications Group, Gamry, and Akzo Nobel.
    Job Creation Projection: approximately 120
  • University of North Dakota Research Foundation - Life Sciences and Advanced Technologies - The Center of Excellence in Life Sciences and Advanced Technologies (COELSAT) will create new jobs through the commercialization of research innovations into high-value products that are developed and made in North Dakota. COELSAT, a 60,000 sq ft state-of-the-art secured facility, will reside on the 80 acre Research Enterprise and Commercialization Park (REAC) and will have 38,000 sq ft of laboratories and 22,000 sq ft of office space. At the end of 5 years, COELSAT/REAC will bring in over $50 million in combined funding and revenue with 80 percent of the jobs employed in new markets that will diversify and strengthen North Dakota's economy.
    Amount Approved: $3,500,000
    Amount of Match: $10,000,000+
    Private Sector Partners: Alion, Avianax, Agragen, BORDERS, Ideal Aerosmtih, Intraglobal Biologics, MC Strategies, Prologic, Cangene, Cirrus, SEI, ImClone
    Job Creation Projection: 100-150
  • University of North Dakota - UAV and Simulation Applications - The Unmanned Aerial Vehicle (UAV) Center of Excellence will provide the conduit for private industry to bring new UAV and related business ventures to North Dakota. The UAV Center of Excellence will provide 1) human factors flight performance research on UAVs and simulation applications; 2) research and development of UAV payload sensors and ground-based cockpits; 3) education and training development for the integration of UAVs into the civilian aviation industry;
    Amount Approved: $1,000,000
    Amount of Match: $6,800,000
    Private Sector Partners: Lockheed Martin, Alion Science and Technology, Frasca International, and Cirrus Aircraft
    Job Creation Projection: 50 private sector & 25 public sector
  • Valley City State University - Institute for Customized Business Solutions - The Institute for Customized Business Solutions (ICBS) is a public-private partnership that will co-develop new enterprise applications consulting jobs in North Dakota. The Enterprise Application Model (EAM) is a unique approach to high-end information technology services, jointly developed by a private company and VCSU. The ICBS will use the EAM to attract, grow, and create information technology businesses to meet spiraling national demand for high quality and reasonable cost in enterprise IT services.
    Amount Approved: $1,000,000
    Amount of Match: $4,912,046
    Private Sector Partners: Eagle Creek Software Services, Eide Bailly Technology Consulting, GEM Car, MeritCare
    Job Creation: 60 by June 2007, 200 by 2008, and 400 by 2010
  • Williston State College< - Petroleum Safety and Technology Center - The Center will co-develop and apply new oilfield technologies to meet the critical workforce and technological needs of the Oil and Gas industry in the Williston Basin. A new training site will offer hands-on experience with an actual rig and Williston State College's Workforce Training Division will advance methods and educate individuals on the latest technology needed in the oilfield industry. The Petroleum Safety and Technology Center will enhance the region's quality of life by focusing on new technologies to create higher paying, skilled jobs.
    Amount Approved: $400,000
    Amount of Match: $1,343,468
    Private Sector Partners: Amerada Hess, Halliburton Energy Services, Sanjel, S & S Chemical, Baker Oil Tools, Nabors Well Service, Penkota Wireline Services, Sun Well Service, Schlumberger, Nabors Drilling, Natco, Encore, Tioga Gas Plant, Basint Tubin' Testin', Bear Paw Energy, Double EE, Enbridge Pipelines, Key Energy, Red River Supply, and SK & S Oilfield Services.
    Job Creation Projection: "450 jobs per year / 1,800 jobs by 2010"

Representing the State Board of Higher Education are Richard Kunkel of Devils Lake, for a one year term; Bev Clayburgh of Grand Forks, for a two year term; and John Q. Paulsen of Fargo for a three year term. Representing the Economic Development Foundation are Tim Hennessy of U.S. Bank in Bismarck; Dennis Johnson, Mayor of Dickinson and CEO of TMI Systems Design Corp.; and Mark Nisbet, North Dakota principal manager for Xcel Energy in Fargo, and chairman.

Hoeven initiated the Centers of Excellence concept in 2002, and worked with legislators to fund the earliest projects in the 2003 session. These included the Center for Innovation at UND and the Center for Technology Enterprise at NDSU. If the projects agreed to by the commission today are authorized by the Legislative Budget Section and Emergency Commission, total funding for Centers of Excellence projects will be more than $20 million, with matches of up to $68.5 million, and thousands of projected jobs.

A Center of Excellence for Economic Development is a hub of research and development on one the campuses of the North Dakota University System around which related businesses expand and dynamic new businesses cluster. The Governor's initiative provides up to $50 million for Centers of Excellence. The dollars will be leveraged with private and federal matching funds to generate a total investment in new jobs and businesses of more than $150 million.

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