By Scout Nelson
The Clean Sustainable Energy Authority of North Dakota has decided to allocate a significant $125 million forgivable loan between two ambitious projects with the goal of bolstering the state's fertilizer supply for farmers. Prairie Horizons Energy Solutions is set to receive $75 million, while NextEra Energy Resources near Spiritwood will be granted $50 million.
This decision awaits final approval from North Dakota’s Industrial Commission. Should one project decline the loan, the entire sum would then be available to the other. Once completed, these projects will have their loans converted into grants, effectively supporting their initiatives without repayment.
The state's legislature had approved these funds during a special session in October, targeting the enhancement of North Dakota’s agricultural industry. A key requirement for the fertilizer production facility is the use of hydrogen produced through water electrolysis.
Given the global conflicts and shipping disruptions affecting fertilizer prices, these projects are timely for North Dakota's corn and wheat farmers. The Prairie Horizon project, a partnership between Marathon Petroleum and TC Energy, boasts a budget of $2.2 billion.
It focuses on combining green and traditional energy for a low-carbon, cost-effective solution, located near Dickinson. This location also aligns with the U.S. Department of Energy’s clean hydrogen hub project.
NextEra Energy Resources, primarily a wind energy company, proposes a $1.3 billion project near Spiritwood, strategically placed in eastern North Dakota, with advantageous access to transportation, water, and the electric grid. An additional benefit of this project is its potential to contribute power to the grid during peak demand times.
Both Prairie Horizon and NextEra focus initially on ammonia production, with plans to potentially expand urea production, increasingly popular among local farmers. Prairie Horizon's proposal notably received higher scores from independent reviewers for factors including financing.
This strategic funding move by North Dakota represents a significant step in strengthening the state's agricultural sector by ensuring a steady supply of locally produced fertilizer.
Photo Credit - gettyimages-fotokostic
Categories: North Dakota, Government & Policy