Gov. Doug Burgum and North Dakota Department of Commerce has announced that the North Dakota Development Fund has approved initial support for Cerilon Inc. to develop a major gas-to-liquids (GTL) complex in North Dakota, with the initial phase estimated at $2.8 billion.
The Development Fund Board approved $3 million in initial developmental capital to Cerilon GTL Inc., a subsidiary of Calgary, Alberta-based Cerilon Inc., for the GTL complex, with further financial support anticipated.
With this support, Cerilon GTL will proceed with the remaining development in anticipation of construction of the $2.8 billion Phase 1 GTL facility in Williams County. The GTL project supports state leadership's strategy to diversify the energy industry and support clean, environmentally responsible energy development.
"The global investment community and markets are demanding low carbon energy," Burgum said. "North Dakota is well-positioned to be a global leader and coveted location for businesses who are looking to expand and respond to the many factors that are currently shaping the future of energy."
The primary outputs of the Phase 1 GTL facility will consist of 24,000 barrels per day of ultra-low sulfur diesel and other specialty products. All products are in high demand, and the operations will support the growth of natural gas production in North Dakota while also assisting in meeting the governor's challenge to make North Dakota carbon neutral by 2030 through innovation over regulation.
"Our paramount goal is to deliver sustainable, long-term value to our stakeholders, community, and the environment. The state-of-the-art GTL facility will be the lowest carbon footprint facility of its kind in the world," said Nico Duursema, Cerilon Inc. Chairman.
The plant will be based in Trenton and following the necessary development work, construction will commence in early 2023. The location will allow rail and pipeline access and offers carbon sequestration opportunities. Cerilon GTL anticipates the establishment of additional phases and other facilities as part of its vision for the complex.
"The Cerilon GTL complex has the potential to be one of the largest economic expansion projects in the history of North Dakota," Commerce Commissioner James Leiman said. "GTL facilities support the oil industry while reducing environmental impacts. The Williams County facility will be one of many expansions that make North Dakota a leader in carbon neutrality."
The North Dakota Development Fund was created in 1991 as an economic development tool. It provides flexible funding through debt and equity investments for new or expanding North Dakota primary sector businesses.
More information about the NDDF can be found at belegendary.link/North-Dakota-Development-Fund.
Reader Comments(0)