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Thursday, October 3, 2024

Lignite Coal Energy CCS Undertaking in North Dakota Will get First Tranche of $350M Federal Funding


Undertaking Tundra, an indication mission that seeks to seize a median of 4 million tons of carbon dioxide from flue fuel from two lignite-fired items on the 705-MW Milton R. Younger Station close to Middle, North Dakota, has secured a $4.1 million federal award from the Division of Power’s Workplace of Clear Power Demonstrations (OCED).

Beneath the Dakota Carbon Middle East Undertaking (DCC East), mission sponsor Minnkota Energy Cooperative plans to put in and function a carbon seize and storage (CCS) demonstration facility to deal with all flue fuel from Unit 2 and a portion of the flue fuel from Unit 1 at Milton R. Younger Station. Undertaking Tundra will deploy carbon seize expertise utilizing Mitsubishi Heavy Industries’ KS-21 solvent.

Based on the Undertaking Tundra web site, Milton’s CCS course of includes diverting flue fuel from the Milton R. Younger Station right into a scrubber, the place the fuel is cooled and impurities are eliminated. The fuel is then despatched to a big absorber unit, the place it rises by way of an amine-based liquid solvent that bonds with the CO, separating it from the flue fuel. As soon as the CO is captured, the solvent is transferred to a regeneration unit, the place warmth breaks the CO bonds, releasing pure CO. Lastly, the CO is compressed and ready for deep geologic storage. “After the CO is compressed, it’s transported by way of a brief pipe to an injection website close to the Younger Station. There, it’s despatched greater than a mile underground to be saved safely and completely in North Dakota’s ultimate geologic formations. Be taught extra about this step on the CO,” the positioning notes.

Undertaking Tundra, notably, would be the first “to make use of CCS expertise at a coal plant in america with on-site geologic storage of the captured CO through Class VI wells,” OCED famous. “Captured CO can be safely and completely saved in saline geologic formations deep underground beneath the facility plant.” Class VI wells, that are used to inject CO into deep rock formations, are permitted by the Environmental Safety Company (EPA). The EPA has to date issued solely 4 remaining allow choices, although it notes it’s at the moment reviewing 53 tasks.

Undertaking Tundra, which is being developed as a part of an business consortium that features TC Power, Mitsubishi Heavy Industries, Kiewit, and the Power and Environmental Analysis Middle on the College of North Dakota, has marked a number of milestones. “The mission collaborators are at the moment within the remaining stage of mission growth,” it notes.

Since preliminary idea discussions in 2015, it has progressed by way of early feasibility and analysis phases in 2016, the beginning of CarbonSAFE CO storage feasibility work in 2017, and the enhancement of the 45Q tax credit score in 2018. From 2019 to 2021, engineering, analysis, and design for carbon seize and storage continued. In 2022, Minnkota acquired a allow for the most important CO storage facility within the U.S., together with a $100 million mortgage from the state of North Dakota.

Building-ready engineering and design started in 2023, and the ultimate mission’s design has been initiated. Undertaking builders suggests a remaining resolution on whether or not the mission will transfer ahead might are available in 2025. That can probably kick off development beginning in 2025, with business operation focused for 2029.

“The overwhelming majority of capital and working prices will likely be funded by way of the federal 45Q tax credit score, which works equally to the sorts of tax credit that wind and photo voltaic tasks have utilized for many years,” Undertaking Tundra notes. “The tax credit score offers $85 per ton of CO that’s completely saved underground over a 12-year interval. The mission has secured $250 million in low-interest financing by way of the state of North Dakota’s Clear Sustainable Power Authority (CSEA) and is in pursuit of different funding alternatives.”

The DOE’s $4.2 million first part of funding is an element of a bigger $350 million cost-share award for which OCED has allotted as much as $350 million. Section 1, which can final six to 9 months, entails the completion of a front-end engineering and design (FEED) examine for carbon sequestration, offering enter into the Nationwide Environmental Coverage Act assessment course of, and receiving a allow to assemble a Class VI nicely. “Throughout Section 1 of the OCED-funded mission, DCC East plans to develop a website analysis abstract and preliminary marketing strategy, begin group advantages planning, and proceed mission allowing.”

Undertaking Tundra is the ultimate mission of three picked by the DOE in December 2023 underneath its Carbon Seize Demonstration Initiatives. Others embody Calpine’s Baytown Carbon Seize and Storage Undertaking in Texas and the Sutter Decarbonization Undertaking in California. 

Sonal Patel is a POWER senior editor (@sonalcpatel@POWERmagazine).



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