Gov. Burgum signs carbon capture bill
The tax exemption legislation will help North Dakota's coal-based power facilities move forward with carbon capture efforts.
North Dakota Gov. Doug Burgum signed legislation April 24 that will help incentivize the capture of carbon dioxide from the state’s coal-based generation facilities.
Minnkota was closely involved with the development of the bill, which creates various tax exemptions for the use of coal-based CO2 in the process of enhanced oil recovery. Incremental oil produced from the Bakken or Three Forks formations will be exempt for a period of 10 years, and incremental oil produced from other formations will be exempt for a period of 20 years. Also included is a sales and property tax exemption for secure geologic storage of CO2.
The legislation supports Minnkota’s pursuit of Project Tundra, which proposes to equip the Milton R. Young Station’s Unit 2 generator with technology that would capture up to 95% of its CO2 emissions. The project is still in the feasibility assessment phase with research being led by the Energy & Environmental Research Center (EERC).
“This is a win-win for North Dakotans,” Burgum said in a press release. “Our coal industry, partnering with the EERC, has been leading the charge in capturing carbon dioxide emissions. By providing the economic incentive needed to transform these emissions into a valuable commodity, we will continue to be a nationwide leader in environmental stewardship while simultaneously increasing our energy production and strengthening our economy.”