Great Plains Synfuels Plant potential to be largest coal-based carbon capture and storage project to use geologic storage

U.S. Sen. John Hoeven, a member of the Senate Energy and Natural Resources Committee, joined company leaders from Basin Electric and the Dakota Gasification Company on Sept. 9 in announcing a proposed carbon capture, utilization, and storage (CCUS) project in development at the Great Plains Synfuels Plant near Beulah, North Dakota. The facility currently captures approximately 2 million tons of the plant’s CO2 emissions, which are piped to Saskatchewan for use in enhanced oil recovery (EOR). The proposed project will enable the facility to capture up to 3.5 million tons of CO2 per year and will serve as part of the largest coal-based CCUS project utilizing geologic storage, while also being the first CCUS project in the U.S. utilizing both EOR and geologic storage.

“The Dakota Gasification Company was already an early leader in CCUS, and this proposed expansion is another milestone in our state’s efforts to crack the code on this critical energy technology – the largest coal-based carbon capture project to use geologic storage,” Hoeven said. “We’re able to make progress like this because we’ve been laying the groundwork for geologic storage of CO2 in North Dakota since 2008. That means not only providing regulatory certainty, but also advancing key incentives at the federal level, including the 45Q tax credit and loan guarantees for project developers.”

The 45Q tax credit provides a new revenue stream for CCUS projects of up to $50 per ton for CO2 permanently stored, or up to $35 per ton for CO2 stored and used for enhanced oil recovery.

Dakota Gas board of directors will consider the project for approval at their September meeting.