PIERRE, S.D. (KELOLAND) — Otter Tail Power has won approval for a special thermal technology rate on electricity that the company plans to sell to the ethanol plant at Big Stone City in northeastern South Dakota and to the new business partner that will produce steam for the plant.
The South Dakota Public Utilities Commission on Tuesday gave the green light to Otter Tail’s proposed agreements with Sioux Falls-based POET Biorefining and Antora, a California-based producer of thermal batteries.
Antora plans to use electricity to heat blocks of carbon, which will be used to heat water and make steam that will be used to make ethanol.
Commissioner Kristie Fiegen described the project as a “game changer.”
“This has been a very unique filing,” Fiegen said. “I am so grateful that new technology is coming to South Dakota.”
POET had planned to have the plant’s CO2 piped away and buried in North Dakota but that project failed to get the commission’s approval earlier this year. Now POET is looking to improve its carbon-intensity score in another way.
Commissioner Chris Nelson asked how much the CI score would change through the deal with Antora. Big Stone plant manager DJ Haggerty said 10 to 15 points.
Otter Tail is also seeking approval for the thermal technology rate from North Dakota and Minnesota regulators.
Nelson said his concern was the risk that the project could go bust. He wanted to be sure that Otter Tail’s other ratepayers are protected. “I’ve been assured by our lawyers that is the case,” Nelson said.
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