02.12.26

Hoeven Outlines Efforts to Advance Crack the Code 2.0

Senator Continues Working to Partner North Dakota’s Oil & Coal Industries, Provide $50 Million in Federal Funding to Develop Large-Scale EOR Pilot Projects

WASHINGTON – While delivering remarks on the floor of the U.S. Senate this week, Senator John Hoeven outlined efforts in North Dakota to advance Crack the Code 2.0, an initiative he is spearheading to partner the state’s coal and oil industries and strengthen U.S. energy security. Hoeven continues working with Energy Secretary Chris Wright, along with state and industry leaders, to move the $171 million initiative forward, with the senator:

  • Working to secure a total of $50 million in federal funding for Crack the Code 2.0.
    • The initiative will utilize large-scale pilot projects to advance the technical and commercial viability of enhanced oil recovery (EOR) in the Bakken.
    • Hoeven has provided $12 million in federal funding for the effort to date.
  • Having included a policy in the One Big Beautiful Bill (OB3), also known as the Working Families Tax Cut Act, to properly align the 45Q tax credit to incentivize the use of CO2 for EOR. Doing so:
    • Supports coal producers’ continued operations by providing access to a new revenue stream through selling CO2 to oil producers.
    • Provides a strong, long-term incentive for EOR, making it the clear, commercially-viable choice to improve oil recovery in the Bakken.

“Crack the Code 2.0 is about strengthening our nation’s energy security, keeping electricity reliable and affordable, and ensuring America remains energy dominant for generations to come… Producers are recovering only between 5 to 10 percent of oil in the Bakken, meaning billions of barrels remain untapped. The Bakken has already produced more than 5 billion barrels of oil, and EOR could unlock at least another 5 billion barrels. That’s more than doubling the amount of recoverable oil from one of our most important energy formations. Doing so will help increase our energy independence and lower costs for American families.

“Crack the Code 2.0 is also about keeping the lights on and strengthening our electric grid, especially as electricity demand continues to soar in the United States. North Dakota’s coal-fired power plants can provide a reliable supply of CO2 that could be captured and put to productive uses for EOR, creating a new revenue stream that helps keep these facilities operating long into the future. This is vital because we can count on our baseload coal-fired power plants to provide reliable electricity available 24 hours a day and in every type of weather condition.

“This is not simply good for North Dakota, it is critical for the United States. Every additional barrel produced at home reduces dependence on foreign sources, particularly from OPEC and adversaries like Iran and Russia. Every megawatt of reliable baseload power protects grid reliability and affordability. Ultimately, energy is the key input to economic activity and greatly impacts our quality of life, and our nation is fortunate to have abundant reserves of coal, oil and gas.

“The first effort to crack the code on the Bakken helped make our nation a global energy powerhouse and strengthened America’s geopolitical standing. Crack the Code 2.0 builds on this legacy, once again harnessing American innovation and unlocking energy resources that will support our economic and national security for decades to come.”

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