An agreement has been reached by Bakken Energy and Basin Electric on key terms and conditions to purchase the assets of the Dakota Gasification Company (Dakota Gas), a subsidiary of Basin Electric, and the owner of the Great Plains Synfuels Plant (Synfuels Plant).
Located near Beulah, ND, the Synfuels Plant holds a distinguished place in American history as a pioneer in the development of alternative sources of energy.
It is an established, large-scale producer of synthetic fuels and provides the existing infrastructure and processes required to accelerate its transformation into the largest and lowest-cost producer of low-carbon clean hydrogen and ammonia in the United States.
This transformation will be greatly facilitated by the Synfuels Plant workforce of experienced personnel.
The closing is subject to the satisfaction of specified conditions and expected to be completed by April 1, 2023.
New, world-class clean hydrogen production facilities generally require up to 10 years to begin producing hydrogen and develop regional infrastructure and applications. The redevelopment of the Synfuels Plant will cut this time in half and produce an estimated 310,000 metric tons of clean hydrogen per year.
This production will use locally sourced feedstock and employ established production and carbon capture processes to produce the clean hydrogen.
“Today’s announcement that Bakken Energy has reached agreement with Basin Electric on terms to develop a world-class clean hydrogen hub in North Dakota is of historical significance for our state and nation and heralds the extension of North Dakota being home to innovative leadership in fueling and feeding the world,” North Dakota Gov. Doug Burgum said.
The North Dakota Hydrogen Hub is expected to be commercially operational in late 2026 with a redevelopment budget for the broader hub including carbon capture and sequestration and hydrogen storage exceeding $2 billion.
As part of the agreement between Basin Electric and Bakken the Synfuels Plant will continue existing operations through 2025.
The transformation of the existing facility and subsequent operations of the redeveloped clean hydrogen production facility will require the same level of highly skilled employees.