Mesaba Energy Project Print Page

Project Status

Project Status

Since development commenced in 2001, key milestones have included:

Site Strategic Planning:

  • Selected and secured preferred and alternate sites required under the state power plant siting rules through option agreements.

  • Conducted site and infrastructure planning for both sites.

  • Completed site feasibility work.

  • Conducted extensive site engineering.

Site Environmental and Transmission Interconnection Route Licensing:

  • Throughout 2005 and early 2006, conducted extensive engineering and environmental analysis in conjunction with ConocoPhillips Company (“ConocoPhillips”), Fluor Corporation (“Fluor”), Short Elliott Hendrickson Inc. (“SEH”) and URS Corporation (“URS”) required in order to prepare permit applications and create a comprehensive Environmental Supplement to support preparation of an Environmental Impact Statement (“EIS”).

  • In June 2006, filed air, National Pollutant Discharge Elimination System (“NPDES”), and water appropriation permit applications for the preferred site.

  • In June 2006, filed the Joint Application with state power plant siting authorities which included (1) requests for issuance of a Large Electric Power Generating Plant Site Permit, an HVTL Route Permit, a Natural Gas Pipeline Routing Permit, and (2) the Environmental Supplement (to be used in support of preparing an EIS).

  • In October 2005, U.S. Department of Energy (“DOE”) announced its intent to conduct a joint EIS for the Project working with the state power plant siting authority at the Minnesota Department of Commerce (“MDOC”).

  • In October 2005, initial scoping meetings for federal EIS held in Taconite, MN and Hoyt Lakes, MN.

  • In August 2006, initial scoping meetings for state EIS held in Taconite, MN and Hoyt Lakes, MN.

  • In January 2007, testimony filed by 21 expert witnesses from ConocoPhillips, Fluor, URS, SEH, Barr, LDP, 106 Group, McVehil-Monnett, Alliance Acoustical Consultants, University of Minnesota-Duluth, and Sherner Power Consulting on behalf of the Project with state administrative law judge (“ALJ”) overseeing the power plant siting process.

  • In November 2007, publication of Draft EIS by DOE and MDOC.

  • In January 2008, completed administrative hearings by all expert witnesses before the state ALJ overseeing the power plant siting process.

  • Throughout 2008, worked with DOE and MDOC to respond to all comments received in response to the Draft EIS.

  • Publication of Final EIS expected early 2009.

  • All necessary pre-construction permits expected to be issued in 2009.

Transmission Grid Upgrades and Licensing:

  • In October 2004 and May 2005 submitted large generator interconnection requests with Midwest Independent Transmission System Operator, Inc. (“MISO”) for the alternative and preferred sites to begin study work and procedures required by MISO interconnection process.

  • Throughout 2005 and 2006, worked with stakeholders to conduct all necessary transmission interconnection engineering studies in order to allow MISO to determine what network upgrades would be required for the Project at either the preferred or alternative site to become a MISO network resource able to deliver power throughout the MISO footprint.

  • In early 2007 negotiated terms of Large Generator Interconnection Agreement (“LGIA”) with MISO and Minnesota Power as the transmission owner in the region around the Project.

  • Executed LGIA for both the preferred and alternate site on July 9, 2007, representing completion of the large generator interconnection process started in late 2004.

Preliminary Engineering and Design:

  • In 2004 selected gasification technology (ConocoPhillips E-Gas Technology) and preliminary design firm (Fluor).

  • Throughout 2005 and 2006, completed feasibility analysis and optimization studies, including fuel type selection and conceptual plant design and cost estimates.

  • Full Process Design Package (“PDP”) by ConocoPhillips is currently underway.

  • In March 2007, Electric Power Research Institute (“EPRI”) announced it used the design of the Project as the basis for its first industry-wide pre-design specification for an IGCC plant.

  • Retained R.W. Beck (independent engineer) and Granherne (Project Company owner’s engineer) to support all technical efforts.

Fuel Supply:

  • Identified design fuel (Powder River Basin coal) and alternate fuels.

  • Conducted market analysis of coal market and availability, and developed conceptual design of natural gas and coal delivery infrastructure.

Federal and State Project Support:

  • Minnesota Enabling Legislation (Minn. Stat. §§ 216B.1694, 216B.1693) enacted in 2003.

  • In 2005, the Project received a $36 million award as part of Round 2 of the DOE’s Clean Coal Power Initiative (“CCPI”).

  • Selection as one of sixteen Pre-Applicants invited to submit a full Application for a Federal loan guarantee authorized under EPAct.

  • IRS allocated Project $133.5 million in federal investment tax credits in April 2008 after selection of Project in competitive solicitation.

Carbon Management:

  • Developed CCS plan for the Project in collaboration with the EERC at the University of North Dakota, in conjunction with the DOE’s Plains CO2 Regional Partnership.