Energy Fuels North Dakota's Rise To The Top

North Dakota has the natural resources and public and private investments to fuel massive growth in the renewable energy sector. The state is among the major exporters of energy to the rest of the country, exporting roughly three-quarters of its 4,000 megawatts of electricity.

It also has more than $700 million invested or scheduled for the production of renewable fuels and wind energy production. This includes a 1,000 percent increase planned in ethanol production — from 35 million gallons a year presently — to more than 335 million gallons per year by the end of the decade. Biodiesel initiatives will add more than another 100 million gallons of renewable fuel production to the state's resources.

“When it comes to energy we have some tremendous advantages,” says Shane Goettle, commissioner, North Dakota Department of Commerce. “We have more than 25 billion tons of recoverable coal reserves. That means we have the capacity to attract energy intensive industries and offer some of the most affordable electrical rates in the nation,”

Bismarck State College recently received a $3 million grant that was leveraged with matching funds from the private and governmental sectors to develop a natural energy center. The center will train students for work in power plants around the state.

During the 2005-2007 biennium the North Dakota Legislature approved $20 million for the project at Bismarck State College and Goettle says the plan for the next biennium's session is to add another $30 million.

Industries

But energy is only one of the state's targeted industries. North Dakota is also a leader in agriculture, with a diverse agricultural system. “We lead the country in at least 14 different commodities, from flaxseed and canola, to peas and lentils,” Goettle says. “We're also the number one honey state.”

Value-added agriculture is a niche that has found a home in Wahpeton. The city, located 45 miles south of Fargo on the North Dakota and Minnesota border, is already home to Pioneer Hi-Bred International Inc., Sigo Sun Products, Inc., Sonne Labs, Inc., Cargill Corn Milling and Minn-Dak Yeast Co.

Prime Board, Inc. purchased in December by Masonite, Corp., is also located in Wahpeton. Prime Board manufactures WheatBoard, a particle board made of wheat straw. “We have a lot of natural blending of our businesses going on, especially in the area of value-added agriculture,” says Jane Priebe, director, economic development, city of Wahpeton.

Devils Lake is also courting agriculture-related industries. “They are a natural fit for us since we're in such a strong agricultural area,” says Denise Hendrickson, executive director, Forward Devils Lake Development Corp.

Aerospace is another growing industry in Devils Lake. “The reason is because of our beautiful airport facility and our wide-open air space,” Hendrickson says. “One business already in our industrial park there specializes in the restoration of World War II aircraft, and we're looking for other businesses that have a niche in the aerospace industry. We have lots of room for growth and development at the airport.”

Workforce and Education

Devils Lake recently completed a labor availability study that indicated the area has a 97 percent high school graduation rate, with 80 percent of those graduates continuing into higher education.

And those educational opportunities are extended to businesses seeking training for its workers. Devils Lake is home to the Lake Region State College, a community college that houses the Northeast Workforce Training Center. This center provides training to existing employees and industry. “When the college works with a business, officials sit down with the company and come up with a program that meets its specific needs,” Hendrickson says.

Priebe says that Wahpeton's North Dakota State College of Science is one of the reasons businesses give for locating in that area. “The college helps with whatever training needs businesses may have and also provides computer and technical training, employee development programs and it offers standards training,” Priebe says.

Within each quadrant of North Dakota there is a college or university that works closely with businesses to assess their needs and custom-design classes to meet those needs, and then deliver that training at a time and location that is convenient to the employers and employees.

In 2007, through the Manufacturing Extension Partnership of North Dakota, the state will have a manufacturing “boot camp” up and running. “The boot camp will help people who are underemployed or who need a lift in basic skills to gain the skills manufacturers need on their floor,” Goettle says. “We're very excited to be working with the private sector to develop this program so that it will provide real skills to fill real needs.”

Business Climate

The state also helps business and industries in training and upgrading workers' skills through the Workforce 20/20 program. This program fills gaps left by federally funded training programs and provides direct reimbursements to businesses.

The North Dakota New Jobs Training Program provides incentives to businesses and industries that are creating new employment opportunities through expansion or relocation to the state. The state also offers incentives to businesses that create new wealth and jobs through the development of new and expanded uses of North Dakota agricultural products. These Agricultural Products Utilization Commission (APUC) dollars can be used for product research, prototype development, feasibility studies, marketing plans and activities where there is a strong potential for development, commercialization and job creation in the state.

The North Dakota Development Fund is another unique tool to financially assist qualifying businesses. The development fund provides gap financing not available from more traditional sources. Funds are available through direct loans, participation loans, subordinated debt and equity investments. Development fund dollars can be used for real estate, equipment and working capital.

Since the development fund's inception in 1991 it has invested nearly $47 million in 293 companies. “Without a doubt we have one of the best business climates in the nation,” Goettle says. “I say that because we have a competitive, low-cost business environment and a thoroughbred workforce that is hard working. We are an anti-red tape state that moves at the speed of business rather than the speed of government.”

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