Combined Cycle

Wisconson natural-gas fired plant gets another federal approval

Dairyland Power Cooperative, Minnesota Power and Basin Electric Cooperative have been working to gain permission to build the $700 million power plant for more than three years. Plans call for the facility near an Enbridge Energy pipeline hub on the banks of the Nemadji River, which flows into Lake Superior, in the city of Superior, Wisconsin.
Wisconson natural-gas fired plant gets another federal approval
(Source: Minnkota Power.)

The U.S. Department of Agriculture’s Rural Utilities Service (RUS) has, for the second time, issued a Finding of No Significant Impact (FONSI) for the Nemadji Trail Energy Center (NTEC) project, a 625-MW combined-cycle natural gas facility which proponents say is meant to aid reliability during the clean energy transition.

Dairyland Power Cooperative, Minnesota Power, and Basin Electric Cooperative have been working to gain permission to build the $700 million power plant for more than three years. Plans call for the facility to be built near an Enbridge Energy pipeline hub on the banks of the Nemadji River, which flows into Lake Superior, in the city of Superior, Wisconsin.

Along with the gas plant, the proposal calls for a new 345-kilovolt transmission line, relocation of an existing gas pipeline, and construction of a new gas pipeline to tap an existing gas supply network. Facility construction is expected to begin in spring 2024 with a 2028 in-service date.

Earlier this year, Indigenous tribes in Michigan, Minnesota, and Wisconsin asked federal officials to deny Dairyland Power Cooperative’s request for a loan to help build a natural gas-fired power plant on the shores of Lake Superior, calling the project “unthinkable” in the face of climate change.

Chippewa tribes located across the northern third of the three states sent a letter to U.S. Department of Agriculture officials Sept. 11 asking them to deny the utility’s request for a $350 million public loan. The request was intended to cover the utility’s share of the cost of building the Nemadji Trail Energy Center power plant.

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Opponents argue that not only is the gas plant problematic in its own right, but it will also drive more investment in gas infrastructure and fracking. The utilities say using natural gas is a flexible means of producing electricity when wind and solar aren’t available and would serve as an alternative producer as utilities shut down coal-fired plants.

Dairyland says the plant could be retrofitted to run on up to 30% hydrogen, which is being promoted as an industrial energy source by the Department of Energy including with the establishment of hydrogen hubs nationwide.

The plant would be a merchant generator selling power on the open market in the MISO regional transmission organization territory.

“From filling in critical gaps when solar and wind output is low to serving as a safety-first resource
during storms and extreme temperatures, NTEC is key to sustaining grid reliability and supporting
renewable energy production,” said Dairyland Vice President of Strategic Growth John Carr

The utilities say a subsequent Supplemental Environmental Assessment (SEA) confirmed the facility will reduce greenhouse gas emissions – decreasing carbon dioxide (CO2) emissions by an average of 964,000 tons per year.

Dairyland recently submitted a Letter of Interest for funding through the U.S. Department of
Agriculture’s New Empowering Rural America (New ERA) grants program for a portfolio of clean energy projects.

“The eight solar and four wind energy resources in Wisconsin, Iowa and North Dakota proposed by Dairyland depend on NTEC for on-demand response support,” Carr said.

This article includes reporting from the Associated Press and the Energy News Network.