Industrial Commission approves funding for two Oil and Gas R&D grants
BISMARCK - The North Dakota Industrial Commission (Commission) approved funding today totaling $10 million for two legislatively directed research projects contingent on Oil and Gas Research Council approval.
In a joint statement, the Commission consisting of Governor Doug Burgum, Attorney General Wayne Stenehjem and Agriculture Commissioner Doug Goehring, stated, “These two projects will assist in identifying new opportunities to utilize our valuable North Dakota natural resources. We appreciate the Legislature approving funding from the Strategic Investment and Improvements Fund for the salt cavern study and increasing the Oil and Gas Research Fund dollars to allow for the work to be done on hydrogen energy.”
The Field Study to Determine the Feasibility of Developing Salt Caverns for Hydrocarbon Storage in Western North Dakota will be conducted by the Energy & Environmental Research Center (EERC). The funding award is for $9.5 million and industry participation will increase the total project value to $10 million. This study will evaluate geologic formations in North Dakota for the development of salt caverns to be used for underground storage of energy resources, including natural gas, liquified natural gas, natural gas liquids, and hydrogen. The project will use field-, laboratory-, and modeling-based efforts to assess the nature of selected salt formations and develop engineering design recommendations for future pilot studies.
The goal of this project is to provide the state, the oil and gas industry, and other interested parties with the key information needed to assess the techno-economic viability of storing hydrocarbon gases and hydrogen in engineered salt caverns. The study is expected to be completed in less than two years.
The second project funded by the Commission in the amount of $500,000 is the Hydrogen Energy Development for North Dakota Study. This study will be performed by the EERC and produce a roadmap for the development and implementation of hydrogen energy that considers existing resources, methods of production and delivery, and potential end uses of hydrogen. The plan will also provide estimates of the cost and timeline to develop infrastructure for hydrogen energy and the utility of public-private partnerships to assist in the development of infrastructure for hydrogen energy. This project will provide a pathway for the development of a hydrogen economy in North Dakota that assesses opportunities and challenges for hydrogen energy in the state. The EERC researchers will actively engage industry, state leaders and other stakeholders to gather information needed to develop a detailed road map for North Dakota’s hydrogen economy.
The Oil and Gas Research Council will complete its technical review of the two EERC proposals and act on these proposals at its next meeting.
For further information contact Nikki Massmann, EERC Director of Communications at 701.777.5428