Bakken Energy, a clean energy infrastructure developer, has agreed with Basin Electric Power Cooperative to purchase the assets of the Dakota Gasification Company, a subsidiary of Basin Electric, and the owner of the Great Plains Synfuels Plant.
The synfuels plant is an established, large-scale producer of synthetic fuels Located near Beulah, North Dakota, US. The aim is to transform the plant into the lowest-cost clean hydrogen production facility. Subject to the satisfaction of conditions, the purchase is expected to be completed by April 2023.
As part of the agreement, the synfuels plant will continue existing operations through 2025. The North Dakota Hydrogen Hub is expected to be commercially operational in late 2026 with a US$ 2 billion redevelopment budget for the broader hub, including carbon capture, sequestration, and hydrogen storage.
The redevelopment of the synfuels plant will use locally sourced feedstock and employ established production and carbon capture processes to produce around 310k tonnes/year clean hydrogen. It will take advanced ATR (autothermal reforming) hydrogen production technology and capture 95% of the carbon emissions. ATR technology was selected over steam methane reformation (SMR) and other technologies to maximize CO2 capture rates and repurposing of existing synfuels plant infrastructure and processes.
In June 2021, Bakken and Mitsubishi Power Americas agreed to create a world-class clean hydrogen hub in North Dakota to produce, store, transport, and locally capture and sequester carbon (CO2).
Doug Burgum, Governor of North Dakota, said, “The North Dakota Hydrogen Hub will lead to the establishment of new industries, create high-paying jobs and the development of new domestic and foreign markets.”
Steve Lebow, Chairman and Founder of Bakken Energy, said, “Rapidly establishing the viability of low-cost clean hydrogen supply to meet the acceleration of clean hydrogen demand is critical to developing our nation’s hydrogen economy.”
Mike Hopkins, CEO of Bakken Energy, said, “The North Dakota Hydrogen Hub will become a critically important, centrally located hydrogen complex and part of a nationwide, interconnected collection of hubs spanning the country.”
Paul Sukut, CEO and GM of Basin Electric Power Cooperative, added, “Our commitment is to get this right and choose the best option for our employees, our members, and area communities.”
Paul Browning, President and CEO of Mitsubishi Power Americas, said, “The redevelopment of the Synfuels Plant rapidly advances Mitsubishi Power’s strategic objective to deliver energy solutions that allow our customers to address climate change and advance human prosperity.”