South Dakota Project Seeks Electricity Exemption for Biofuel and Hydrogen Plants
Key Ideas
- Gevo Net-Zero 1 project aims to convert corn into renewable aircraft fuel and produce renewable hydrogen in South Dakota.
- The project faces challenges in negotiating electricity supply, seeking an exemption to choose Kingsbury Electric over Otter Tail Power.
- Governor Kristi Noem's administration supports the project, with significant financial aid and reinvestment payments approved.
- The project plans to be powered by a 99-megawatt wind farm, with construction expected to start in 2026.
A proposed project by Gevo Net-Zero 1 in South Dakota aims to convert corn into renewable aircraft fuel and produce renewable hydrogen. The project, to be located near Lake Preston, faces challenges in negotiating electricity supply, seeking an exemption to choose Kingsbury Electric Cooperative over Otter Tail Power. The South Dakota Public Utilities Commission will decide whether to grant this exemption. The project, expected to cost $1 billion, has received political support and financial aid from Governor Kristi Noem's administration. The state Board of Economic Development has awarded significant reinvestment payments for the Net-Zero plant, hydrogen facility, and an associated wind farm. The project developers plan for it to be 100% powered by renewable electricity from a 99-megawatt wind farm. Construction is anticipated to start in 2026, with plans to connect to a proposed carbon-sequestration pipeline. However, the project faces legislative challenges, with a bill requiring the Public Utilities Commission to override local regulations referred to a statewide vote in the November general election.