CARBON CAPTURE, UTILIZATION, AND STORAGE: SECURING NORTH DAKOTA’S ENERGY FUTURE

Feeding And Powering The World

Two core economic pillars of North Dakota are the energy and agriculture industries. However, both industries are historically carbon-intensive, meaning that a lot of carbon is generated during specific processes associated with these industries. Managing global carbon emissions is one of the most pressing environmental concerns of our time. Many scientists are concerned that anthropogenic (human-made) greenhouse gases (GHGs) are affecting Earth’s climate. This concern is driving policies in the United States, and around the globe, which are resulting in economic incentives and preferential financing for companies taking action to lower the carbon intensity of the commodities they produce. The challenge is to address anthropogenic GHG emissions while providing access to reliable, affordable, resilient energy and products. Carbon capture, utilization, and storage (CCUS) is one of the best technologies to address the challenge to decarbonize these industries while we continue to feed and power the world and grow the economic contributions of these cornerstone industries to our state.

For more than 20 years, the University of North Dakota Energy & Environmental Research Center (EERC) has partnered with industries, state and federal organizations, and universities to conduct focused research on the capture and geologic storage of CO2. Geologic storage entails the injection of captured CO2 deep into the subsurface, where the CO2 can either be permanently stored in deep saline formations or used to recover additional oil and gas from hydrocarbon reservoirs. In both cases, the CO2 remains permanently and safely stored deep underground. Much of the research and development on CCUS has been carried out through the collaborations within the Plains CO2 Reduction (PCOR) Partnership, led and managed by the EERC (www.undeerc.org/pcor). Research conducted through PCOR and elsewhere has shown that CCUS is safe and commercially viable, provided that the geologic site chosen for storage is appropriate. The rocks of North to human health and the environment will not occur sometime in the distant future.

Dakota’s Williston Basin are particularly well-suited for the permanent storage of CO2 and, in many instances, directly underly the locations of large industrial sources such as coal-fired electrical power plants. This is a synergy that provides prime opportunities for successful CCUS projects.

Open For Business

In addition to being a key technology in addressing global climate emissions, CCUS will provide significant economic opportunities for the State of North Dakota. In 2021, Governor Burgum announced an ambitious goal for North Dakota to be carbon neutral by 2030, a goal to be achieved through innovation, not regulation. Since his announcement, the state has attracted over $15 billion in potential investments in CCUS, with more expected to come. Deployment of this technology is an emerging opportunity that has the potential to create tens of thousands of skilled, high-paying jobs in the state while securing the future of our existing energy infrastructure.

thereby ensuring the maximum use of natural resources.”

State law makers understood that practical and effective geologic storage of CO2 requires cooperative use of surface and subsurface property interests and the collaboration of property owners. As such, the state statutes for geologic storage established procedures that promote, in a manner fair to all interests, cooperative management, thereby ensuring the maximum use of natural resources.

The subsurface geologic storage of CO2 represents an optimal situation for achieving reduced GHG emissions to the atmosphere. A key element to the successful commercial deployment of the geologic storage of CO2 is site selection. A good storage site has the storage capacity needed to store the desired amount of CO2 and suitable containment to ensure that the CO2 doesn’t migrate vertically out of the storage zone. Other key criteria include sufficient depth and geologic stability and chemistry, all of which help ensure the long-term storage suitability of the site. Once CO2 injection begins, various monitoring methods are implemented to verify that the CO2 is behaving as we expect, to quantify the amount of CO2 injected, and to ensure that there are no negative impacts to human health, the environment, or property. Equally important to commercialization is the ability to provide assurances to the public that impacts

In 2009, North Dakota established several key legislative positions relative to CO2 capture and storage. In addition to clarifying that the subsurface pore space needed to store CO2 belongs to the surface owner, the state also provides for long-term liability of the stored CO2 after the project ends. To further embrace the concept of CO2 storage, the North Dakota Century Code was crafted to state: “It is in the public interest to promote the geologic storage of carbon dioxide. Doing so will benefit the state and the global environment by reducing greenhouse gas emissions. Doing so will help ensure the viability of the state’s coal and power industries, to the economic benefit of North Dakota and its citizens. Further, geologic storage of carbon dioxide, a potentially valuable commodity, may allow for its ready availability if needed for commercial, industrial, or other uses, including enhanced recovery of oil, gas, and other minerals. Geologic storage, however, to be practical and effective requires cooperative use of surface and subsurface property interests and the collaboration of property owners. Obtaining consent from all owners may not be feasible, requiring procedures that promote, in a manner fair to all interests, cooperative management,

Incentives for geologically storing captured CO2 come from the state and federal level. For example, in April of 2019, Governor Burgum signed legislation that provides an economic incentive to use CO2 captured from North Dakota’s coal-fired power plants for enhanced oil recovery (EOR) by injecting the CO2 underground. At the federal level, IRS 45Q tax rule provides for tax credits of up to $85 per metric ton of CO2 stored. Additional incentives for participation in the storage of CO2 is the per ton payment that the landowner will receive in compensation for using the pore space or royalties paid to mineral owners for production of hydrocarbons (that would not have otherwise been produced) through the application of an EOR process using anthropogenic CO2. Incentives also come from voluntary markets and premiums paid for commodities with a reduced carbon intensity. The demand for CO2 in at-scale deployment of EOR in North Dakota will likely dwarf the CO the state currently produces, requiring imports from other states.

From an energy generation point of view, the use of CO2 as a tool to extract more resource could produce an additional 4 billion barrels of oil from North Dakota’s unconventional (e.g., Bakken) and legacy (~pre-Bakken) oil fields. The EOR process will store nearly all the CO2 used to get that incremental oil, resulting in a lower carbon-intensity product.

More Reliable Energy

Addressing climate change is a large-scale global challenge that is compounded by our growing demand for energy. To reduce the risks associated with climate change, the amount of CO2 released by human activity must be substantially reduced. However, increasing reliance on low-carbon renewable energy sources may sacrifice grid resilience and reliability. These concerns have been amplified during recent extreme weather events in the United States when much of the country was without power. A significant challenge in reducing the reliance on fossil fuels in the energy sector is to find solutions to overcome the intermittency issues associated with renewable energy in an economically feasible manner. Traditional power plants equipped with CCUS technology can play an important role to ensure that low-carbon power generation of the future can evolve without sacrificing resilience and reliability. CCUS-enabled power production will contribute to energy security that compliments a balanced allof-the-above energy policy.

In the face of growing world populations and rising worldwide standards of living, CCUS provides an opportunity to use fossil fuels with a significant reduction in GHG emissions. CCUS lies at the intersection of energy, the economy, and the environment, which makes it a critical approach to meet our state and country’s clean energy needs.

A Growing Portfolio

As of December 2022, the North Dakota Industrial Commission, the regulatory body that oversees the injection of CO2, has approved three CO2 storage facility permit applications and is reviewing two additional permit applications. This is just the beginning. There are other announced projects in the state that will be pursuing CO2 storage permits, including the formation of a partnership to create a hydrogen hub in the state. The hub will focus on the production of low-carbon hydrogen, much of which will be derived from fossil fuels, with the CO2 emissions captured and geologically stored.

For the past 23 years, more than 40 million tons of CO2 has been transported in a pipeline across North Dakota to oil fields in Saskatchewan where it was permanently stored during commercial EOR. Earlier this year, North Dakota’s first commercial-scale CO2 EOR project got underway in Bowman County. The CO2 being used in this project is brought by pipeline from Wyoming for simultaneously producing low carbon intensity oil with permanent CO2 storage.

Additive Benefits

Through a combination of leadership, vision, and strategic investments, North Dakota has positioned itself as the global frontrunner for CCUS. An accomplishment critical to providing economic options and opportunities to North Dakota’s pore space and mineral owners AND for ensuring the continued viability and future growth of our energy, agricultural, and supporting industries. CCUS is going to be a critical component of safe, resilient, reliable, affordable, low-carbon energy derived from coal, oil, gas, biofuels, and renewables. CCUS will also be critical for low-carbon agriculture products, resulting in an advantage for North Dakota commodities and products competing on national and global markets for generations to come.

jeff Clancy

Vantage

Point Solutions

hires manager of Regulatory & Legal in

the

Consulting Department Department

MITCHELL, S.D. • Vantage Point Solutions is pleased to announce the hiring of Jeff Clancy, who has joined the Vantage Point team as manager of regulatory & legal in the consulting department.

Clancy previously represented clients in a corporate counsel role and brings with him a decade of industry experience and even more corporate legal knowledge.

“Jeff’s extensive business expertise and depth of industry relationships will provide our clients with even greater strategic insight and opportunities,” said Mikaela Burma, manager of regulatory and legal. “The issues and business situations our clients are facing are becoming progressively more complex and competitive. He’s already providing valuable assistance to our clients with regulatory and compliance questions. We are excited to have him on board.”

Clancy’s negotiation, transactional, and merger and acquisition experiences are a complement to Vantage Point’s other licensed attorneys in the dynamic Consulting department, which provides strategic, financial, and regulatory expertise to guide clients.

“His professionalism and strategic mindset will be a great asset for our clients, particularly in this age of extraordinary opportunities and challenges,” said Julie Darrington, vice president of consulting. “His familiarity with the FCC and other regulatory bodies, and experience working with clients in both rural and larger business sectors, gives Jeff a unique understanding that will prove advantageous for all of our clients.”

For his part, Clancy is excited to join the successful and growing Consulting department. “Vantage Point’s reputation in the industry is really unmatched. I’m looking forward to joining a team that’s so committed to the broadband ecosystem, and making sure clients have the guidance they need to be successful.”

Clancy earned his JD from Thomas M. Cooley Law School in Michigan and is a member of the State Bar of Minnesota. He participates as a member of the Minnesota Telecom Alliance Regulatory Committee and resides in Central Minnesota.

Apex Engineering Group welcomes two to St. Cloud office

St. CLOUD, Minn. • Tej Bala brings 16 years of water and wastewater engineering experience to his new role as a senior environmental engineer at Apex Engineering Group. He joins the company’s newest office in St. Cloud. In this role, he will be involved with planning, design, construction, and commissioning of water and wastewater treatment facilities. Tej is a certified professional engineer licensed in Minnesota and Texas.

Tej Bala Ryan Kotta

Ryan Kotta Joins Apex as Senior Environmental Engineer

Ryan Kotta brings 15 years of engineering experience to his role as a senior environmental engineer at Apex Engineering Group. In this new role, he is responsible for planning, design, bidding and project management of water and wastewater projects. Ryan is a certified professional engineer registered in the state of Minnesota and is located in the Apex St. Cloud Office.

Ackerman-Estvold welcomes project designer

Minot, N.D. • Travis Bean has joined the Ackerman-Estvold Fargo office as a project designer. Bean earned his Bachelor of Science-Environmental Design and Bachelor of Architecture degrees from North Dakota State University, Fargo, North Dakota. Travis has extensive experience in commercial building design, space planning and large-scale additions. His responsibilities will include conceptual design, design development, and construction management on architectural projects throughout the region.

Travis Bean

Ackerman-Estvold is a professional engineering and architectural firm headquartered in Minot, ND, with an additional office location in Fargo, ND, Williston, ND and Boise, ID. The firm provides planning, design, and construction services for public and private clients throughout North Dakota and surrounding states. For more information about Ackerman-Estvold, and services they provide visit www.ackerman-Estvold.com.

continued from page 22

“State funding is available for the academic programs but when you do an athletic building, that’s subject to a fundraiser,” Burian said, noting the Memorial Village is a private-public partnership.

“It was just getting to the point where everything was getting to be in really tough shape,” he said of the former Memorial Stadium, which was razed in 2021 and the (school) decided to develop the private-public partnership. “So instead of doing it as a university, a project they elected to partner with the private sector.”

Burian said there are four partners involved in the project.

The first floor of the future Memorial Village will comprise University of North Dakota athletic offices, housing athletic administration, coaching staff, and student-athlete academic services.

The upper four stories will feature 99 market-rate apartment homes, Burian said. What is planned is 25 one-bedroom sites, 58 two-bedroom dwellings, and 16 four-bedroom units.

There will be underground parking and numerous amenities throughout Memorial Village, along with an enclosed Hawkway connecting it with the High Performance Center.

BismarckStateCollegeoffersstackable certificatesandflexibletwo-yearand four-yeardegreeprogramstoprovide futureandcurrentemployeeswiththe opportunitytoupskillandadvancein high-demandcareers.

With12+careerpathwaysinEnergy, BSCprovidesyouwiththetraining youneedtoadvanceintoday’s Energyindustry.

THEREGION’SONLY POLYTECHNIC INSTITUTION

Hands-onlearning,internships and business partnerships

UPSKILL

Withcertificates, associate& bachelor’s degrees bismarckstate.edu/Energy tolearnmore.