Hoeven Working to Advance Coal-Based Fertilizer & Critical Mineral Production Under Second Phase of Crack the Code 2.0

BISMARCK, N.D. – At the Lignite Energy Council’s annual conference today, Senator John Hoeven discussed efforts to secure the future for North Dakota’s coal producers and ensure consumers and businesses continue to benefit from the affordable, reliable baseload power provided by coal. To this end, Hoeven is working to develop the second phase of Crack the Code 2.0 and incorporate additional value-added revenue streams into the initiative. This includes: Developing lignite coal as a source of critical minerals. Hoeven highlighted a project he has worked to advance, along with Senator Kevin Cramer and Representative Julie Fedorchak, at the University of North Dakota (UND) to advance the recovery of rare earth elements and other critical materials from coal and coal-based feedstocks. UND was selected as one of five projects nationwide under the $75 million initiative, following an effort Hoeven led with the North Dakota congressional delegation calling on the Department of Energy (DOE) to support UND’s proposal. Hoeven has been supporting efforts like this since 2017, starting with two awards he helped secure for UND that year totaling $4.25 million for coal-based critical minerals research. Hoeven has also advanced similar funding for UND’s Energy & Environmental Research Center (EERC), including a $1.5 million research grant awarded in 2021 . Hoeven stressed the need to develop domestic sources for these minerals and reduce dependence on adversarial nations like China. The pilot project will be located in Underwood, North Dakota, and UND is currently in negotiations with DOE to finalize its award. Expanding fertilizer production at the Dakota Gasification Company’s (DGC) Great Plains Synfuels Plant. This facility uses coal to produce fertilizers such as ammonium sulfate, anhydrous ammonia and urea. Increasing production would create additional revenue for coal producers while benefiting farmers, who would have access to an affordable, local source of fertilizer. This would also provide additional CO2 for enhanced oil recovery (EOR), supporting increased oil production in the Bakken. For more than 25 years, DGC has captured CO2 for EOR in Weyburn Field in Canada, a proven model which Hoeven is working to expand to the Bakken under the first phase of Crack the Code 2.0. “With electricity demand surging, the affordable and reliable power provided by coal is more important than ever, making our Crack the Code 2.0 initiative a critical priority for the future of U.S. energy production. The initiative’s first phase is funded and underway, developing large-scale pilot projects to advance the use of EOR in the Bakken. Now, we’re getting to work on phase two with the goal of creating additional revenue streams to support our coal producers. Not only will these efforts increase domestic production of vital resources like fertilizer and critical minerals, but they will help generate the CO2 we need to increase oil production in the Bakken. That’s a win for our farmers, energy producers and our national security, as it will reduce our reliance on critical minerals from China,” said Hoeven. Building on Crack the Code 2.0 Phase One These efforts build on phase one of Hoeven’s Crack the Code 2.0 initiative, which is in the process of developing large-scale pilot projects to advance EOR in the Bakken, using CO2 from coal-fired power plants to increase the productivity of oil wells. This is made possible by a total of $157 million in phase one funding, which includes $36 million in federal funding that Hoeven secured, $76 million in private investment and $45.1 million in state funding. Hoeven worked closely with U.S. Energy Secretary Chris Wright and his team at DOE to finalize the federal award. Crack the Code 2.0 is further supported by a policy Hoeven worked to secure in the Working Families Tax Cut Act to properly align the 45Q tax credit to incentivize the use of CO2 for EOR. EOR provides an additional revenue stream to support the reliable baseload power provided by coal producers, while unlocking at least 5 billion additional barrels of oil in the Bakken. -###-