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Power North Dakota's Future Amidst Policy Challenges

 

 

By Jason Bohrer

 

October 16, 2024 - Amid evolving global energy landscapes and shifting policy tides, North Dakota's lignite coal industry stands as a bastion of stability and innovation. As the president and CEO of the Lignite Energy Council, I've witnessed firsthand the resilience and adaptability of this industry, which continues to play a crucial role in powering our economy and supporting our communities.

 

Jason Bohrer


Challenges Facing the Lignite Industry


Like many others, the lignite industry faces significant challenges. Increasing regulatory pressures and a rapid shift towards renewable energy sources have created a complex environment for coal-based energy production. Policy changes ushered in by Presidential administrations’ varying agendas targeting fossil fuel production, particularly the coal industry in North Dakota, have prompted us to adapt and innovate to ensure our continued operation and contribution to the energy grid.


Despite these hurdles, it is essential to recognize that moving away from coal-based energy is not just a meaningless transition in fuel sources but also a shift that could potentially destabilize our entire transmission system. This has become particularly evident during extreme weather conditions, where the robustness and reliability of lignite-powered electricity have proven indispensable. We must consider the potential consequences of such a shift.


The Successes and Benefits of Lignite


Lignite coal is not merely a source of energy but a cornerstone of North Dakota's economic and social fabric. It provides thousands of good-paying jobs, supports local communities, and contributes significantly to North Dakota's economy – more than $5.7 billion in economic activity and more than $104 million in tax revenue. The affordable electricity generated by lignite powers homes and businesses and fuels the broader economic activities that define our regional success.


One of the most recent and most exciting developments is the "Lignite Plant of the Future" project. This initiative aims to overcome the barriers to new plant construction by focusing on sustainability and economic feasibility. Through innovative research, we are paving the way for a facility that embodies the future of lignite — efficient, environmentally friendly and economically viable.


Addressing Misconceptions and Advocating for Energy Diversity


There is a growing need to address the misconceptions surrounding the lignite industry. While the narrative often focuses on the environmental impact, it is crucial to present a balanced view that also highlights the advancements in emission reductions and sustainable practices that have been achieved.


The partisan nature of current energy policies, with stark divides between support for fossil fuels and renewables, poses a challenge. However, North Dakota remains a leader in advocating for an "all of the above" energy policy, which begins with coal-based electricity, which is more crucial than ever. As we have seen in past bipartisan energy bills, cooperation across the aisle can yield substantial advancements in both the fossil and renewable energy sectors.


The Road Ahead


Looking forward, the lignite industry in North Dakota is poised to not only continue its critical role in energy production but also enhance and expand the industry’s viability and impact through technological innovations and research. Our commitment to reducing environmental impact while enhancing energy reliability will guide us in navigating the complex regulatory and economic landscapes.


North Dakota’s lignite industry represents a dynamic and vital component of the state’s energy and economic strategy. It is imperative for policymakers, stakeholders, and communities to engage in meaningful dialogue about the role of baseload lignite energy.


Jason Bohrer is president and CEO of Lignite Energy Council. During his tenure, the Lignite Energy Council has embraced a forward-looking strategy for the lignite coal industry in North Dakota, architecting Research & Development initiatives while preserving its core focus on sustainable lignite electricity production.