Great River Energy power supply transformation continues
New ownership group for Coal Creek Station plans carbon capture and renewables
Great River Energy, GCCEA’s wholesale power provider, reached an agreement to sell the Coal Creek Station power plant to Rainbow Energy Center, LLC.
The sale of Coal Creek Station averts the plant’s closure, which was scheduled for the second half of 2022 unless a buyer was found. Rainbow Energy Center will continue to operate the 1,151-megawatt (MW) power plant using current plant employees they hire. Rainbow Energy Center also plans to develop carbon capture and storage at Coal Creek Station.
“We are excited for what the future holds for our North Dakota employees and the communities surrounding Coal Creek Station,” said Great River Energy President and Chief Executive Officer David Saggau. Selling the plant also offers additional benefits for Great River Energy’s member-owners compared with shutting it down.
Nexus Line, LLC has reached an agreement to purchase from Great River Energy the high voltage direct current (HVDC) transmission system that extends between central North Dakota and Minnesota. Great River Energy will operate and maintain the HVDC system under a 10-year contract.
Rainbow Energy Center and Nexus Line are affiliates of Rainbow Energy Marketing Corp. of Bismarck, North Dakota.
“The successful implementation of carbon capture and storage is central to our plans at Coal Creek Station,” said Rainbow Energy Marketing Corp. President Stacy L. Tschider. “As a privately held company, we are uniquely positioned to continue the successful legacy that Great River Energy and its employees have established in North Dakota.”
Rainbow Energy Center plans to add incremental generation from renewables to fully utilize the capacity of the HVDC transmission system.
Great River Energy will also enter into a power purchase agreement with Rainbow Energy Center, LLC.
These transactions will help ensure Great River Energy continues to provide its member-owners with reliable and affordable electricity as the cooperative builds its future power supply portfolio.
“We are building a power supply portfolio that will serve our member-owner cooperatives with clean, affordable and reliable energy for decades,” said Saggau. The cooperative will add 900 MW of wind energy by 2023 and remains on track to meet Minnesota’s 80% carbon dioxide reduction goal ahead of schedule.
The sale of Coal Creek Station and the HVDC system is expected to close later this year, after required approvals are obtained.
- We are pleased that Great River Energy continues to evolve its power supply portfolio to best meet the needs of GCCEA and Great River Energy’s other member-owner cooperatives.
- The commitment of the purchaser, Rainbow Energy Center, to pursue carbon capture and storage at the plant is good for the environment, for the employees at the plant and mine, and for the nearby communities.
- Carbon capture has support from business community, environmental advocates, the White House and elected officials on both sides of the aisle. It can help retain the grid and the benefits the plant provides as well as contribute to the fight against climate change.
- Great River Energy is building a power supply portfolio that will serve its member-owner cooperatives with clean, affordable and reliable energy for decades.
- Following the sale of Coal Creek Station, Great River Energy will have a contract with Rainbow Energy Center (10 years). Great River Energy will purchase 1,050 megawatts for ~ a two-year period, and then 300 megawatts for ~ an eight-year period. The agreement provides a cost-effective and appropriately sized resource to serve our member-owners, and will serve as a reliable steppingstone as Great River Energy transitions its power supply.