Great River Energy’s Coal Creek power plant in North Dakota would continue operating if negotiations with a potential buyer leads to a sale.
Maple Grove-based Great River said Thursday it’s in “exclusive negotiations” to sell the giant coal plant and an accompanying transmission line to buyer it didn’t name.
Great River, which provides power to around 700,000 Minnesotans, announced last May it would close Coal Creek early in 2022, saying it was losing money.
The closure was applauded by clean energy and environmental advocates in Minnesota, but it in North Dakota it was seen as a big economic blow.
The state of North Dakota has been working to find a buyer for the plant in Underwood, which Great River’s CEO David Saggau said last May he had tried to give a way for $1 — but found no takers.
Great River, a wholesale cooperative, is one of Minnesota’s largest electricity providers, supplying retail power co-ops across the state. Coal Creek, which is connected to the Twin Cities by a 436-mile transmission line, has long been Great River’s largest generation source.
If the deal for Coal Creek goes through, Great River said in a statement that it would continue to maintain and operate the power line, even though it won’t own it.
Great River said the potential buyer is interested in pursuing a “major carbon capture and sequestration project” at Coal Creek. Carbon capture, involves capturing greenhouse gas emissions and storing them.
Coal Creek is one of five big power plants in North Dakota located adjacent to a coal mine.
Historically, the mine-next-door model gave the plants a cost advantage. But that has been diminished as coal power has been losing out in wholesale power markets to cheaper gas-fired electricity and renewables.
Coal Creek employs 260; the independently owned coal mine next door, over 400.
Mike Hughlett • 612-673-7003