Hoeven Reviews Progress of Project Tundra, Efforts to Advance CCUS Tech

Senator Outlines Work to Enhance 45Q Tax Credit, Support for EERC & Partners

CENTER, N.D. – Senator John Hoeven today conducted a site visit of Project Tundra’s test well at the Milton R. Young Station and outlined efforts to advance the development of carbon capture, utilization and storage (CCUS) technologies. Project Tundra is a post-combustion technology to retrofit existing power plants, being led by Minnkota Power and the University of North Dakota’s Energy and Environment Research Center (EERC). 

As a member of the Senate Energy and Natural Resources and Energy and Water Development Appropriations Committees, Hoeven has worked to support EERC in this and other CCUS efforts and has secured $43 million for Project Tundra to date. This comes part of the senator’s broader efforts to support the state’s coal industry and maintain its role as a reliable source of baseload power, which is critical to the state’s quality of life and economy. To this end, Hoeven: 

  • Has worked to secure the 45Q tax credit to help make CCUS projects more commercially-viable and build a true path forward for coal in the nation’s energy mix.
  • Helped fund the Plains Carbon Dioxide Reduction (PCOR) Partnership, which is led by the EERC, as well as theCarbonSAFE Initiative.
  • Is advancing legislation to modernize the 48A tax credit to better support cloan coal facilities and the development of CCUS technology.

“Project Tundra is a tremendous opportunity that will allow us to continue harnessing our abundant coal reserves, which are central to maintaining affordable and reliable electricity production for homes and businesses, while also reducing emissions,” said Hoeven. “I appreciate the opportunity to see the test well and other progress on the project firsthand, and as it moves forward, we continue working to support the efforts of the EERC and its partners. This includes enhancing the 45Q tax credit, which offers an important revenue stream to coal producers and project developers and will help make projects like this more commercially-viable.”

Securing the 45Q Tax Credit

Hoeven has been working closely with the White House, Department of the Treasury and the Department of Energy to get the 45Q tax credit implemented in a manner that will make CCUS projects more commercially-viable:

  • Hoeven previously worked to pass legislation to reform and expand the 45Q tax credit and advanced its implementation, including raising the issue with President Trump and White House Chief of Staff Mark Meadows. 
  • The senator helped secure two provisions in the 45Q tax credit’srules to benefit coal facilities and enhanced oil and gas recovery (EOR) operations in North Dakota:
    • An expanded definition of Carbon Capture Equipment (CCE).
    • A provision, similar to Hoeven’s CO2 Regulatory Certainty Act, to ensure the tax credit works both for long-term storage and enhanced oil recovery.
  • Moving forward, Hoeven is prioritizing the need to provide a direct payment option and extend the time available for claiming the 45Q tax credit.