$125M loan for ND fertilizer plant hinges on Scrutiny

By Scout Nelson

North Dakota's ambitious quest for a homegrown fertilizer plant hit a snag as both proposals vying for a $125 million state loan received lukewarm assessments. Independent reviewers deemed three out of four scores for NextEra Energy Resources and Prairie Horizon Energy Solutions as "questionable," raising doubts about their viability. 

The Clean Sustainable Energy Authority committee will delve deeper into the proposals on Tuesday, with a final decision on the forgivable loan resting with the Industrial Commission on January 23rd. 

NextEra's proposed $1.293 billion facility near Jamestown and Prairie Horizon's $2.2 billion project near Dickinson face scrutiny under a unique stipulation – they must utilize hydrogen produced from water electrolysis. 

Concerns about technical aspects and feasibility shadow both proposals. While one review for Prairie Horizon received a "good" rating, the other echoed the question marks surrounding NextEra's plan. The reviewers' identities remain anonymous. 

The urgency for a domestic fertilizer source stems from North Dakota's heavy reliance on imports, compromising farmers' access and impacting crop yields. Agriculture Commissioner Doug Goehring highlighted this dependence, stating that the state imports over half its nitrogen fertilizer needs. 

North Dakota's abundant energy resources and geographical disadvantage regarding existing supply routes further fuel the desire for local production. Sen. Dale Patten, a key proponent, emphasizes the exorbitant costs associated with importing fertilizer, calling North Dakota "the end of the trail" for shipments. 

The incentive program, initially tucked away in a bill later deemed unconstitutional, faced criticism for potentially favoring NextEra. Rep. Glenn Bosch, co-chair of the Clean Sustainable Energy Authority, sees the current vetting process as a step towards transparency and fair competition. 

As North Dakota inches closer to a decision on its fertilizer future, the next few weeks will be crucial for both proposals to address concerns and demonstrate their potential to fulfill the state's agricultural ambitions. 

Photo Credit: gettyimages-wwing