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Burgum signs bill incentivizing use of carbon dioxide captured from coal plants

Per release from Governor Burgum's office:

Gov. Doug Burgum today signed legislation providing an economic incentive to use carbon dioxide captured from North Dakota’s coal-fired power plants for enhanced oil recovery by injecting the carbon dioxide underground.

Under House Bill 1439, incremental oil produced by injecting coal-generated carbon dioxide will be exempt from oil extraction taxes. Incremental oil produced from the Bakken or Three Forks formations will be exempt for a period of 10 years, and incremental oil produced from other formations will be exempt for a period of 20 years.

The legislation supports initiatives such as Project Tundra, which proposes to use technology developed with the Energy & Environmental Research Center in Grand Forks to capture up to 95 percent of the carbon dioxide from MinnKota Power’s Milton R. Young power plant near Center. The captured gas would be used to extract oil that would otherwise remain stranded in rock formations. The EERC estimates an additional 1 billion barrels of oil can be produced from older “legacy” oil and gas fields outside the Bakken using carbon for enhanced oil recovery. 


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