By North Dakota Department of Commerce
North Dakota, historically recognized for its oil production, is taking bold steps to integrate natural gas into its economic strategy. This shift reflects a forward-thinking approach aimed at diversifying the state’s energy portfolio, stabilizing revenue, and fostering long-term growth. By investing in projects that utilize natural gas, the state not only maximizes its resources but also establishes itself as a leader in sustainable energy practices and industrial innovation.
Natural gas, abundant and versatile, is at the center of this effort. The state is leveraging this resource to attract advanced manufacturing, energy production, and other industries reliant on reliable and affordable energy. These initiatives are driving innovation, creating high-quality jobs, and strengthening North Dakota’s reputation as a hub for responsible energy development.
The Strategic Role of Natural Gas
Natural gas offers a practical and versatile solution to the economic challenges posed by volatile oil prices. Sharp fluctuations in oil prices directly impact state revenues, creating uncertainties that strain public services and increase taxpayer burdens. By investing in natural gas infrastructure, North Dakota aims to stabilize revenue streams while fostering a diverse industrial economy that supports traditional energy production, emerging manufacturing sectors, and agriculture. This approach attracts industries requiring consistent, reliable energy—such as advanced manufacturing and technology—positioning the state for sustainable growth and resilience against market changes, ultimately benefiting residents and communities alike.
Driving Economic Growth Through Transformative Projects
North Dakota is taking bold steps toward economic diversification with innovative, transformative projects.
Pig Iron Production Facility by North American Iron
One standout initiative is North American Iron’s proposed $2 billion pig iron production facility. This groundbreaking project will use North Dakota’s abundant natural gas to process previously mined iron ore from Minnesota’s Iron Range into pig iron—a vital ingredient in steel manufacturing. The facility has garnered strong backing, including $7 million from the North Dakota Industrial Commission and $3 million from the North Dakota Development Fund. These investments highlight the state’s dedication to advancing projects that leverage local resources while driving value-added industries.
The facility will create high-quality jobs across engineering, manufacturing, and environmental management. Beyond job creation, the project contributes to land reclamation, restoring mining sites to natural states and opening opportunities for reforestation, wetland recovery, and recreational use.
Cerilon Gas-to-Liquids (GTL) Plant
In Williams County, Cerilon is planning a $3.6 billion GTL plant that will convert natural gas into ultra-low-sulfur diesel, naphtha, and base oils for U.S. markets. This cutting-edge facility is expected to use nearly half of North Dakota’s current gas production, reducing reliance on imported fuels and minimizing the need for expanded gas transportation infrastructure.
Cerilon’s project demonstrates the economic potential of shared industrial infrastructure. By situating the plant near complementary facilities, the project creates opportunities for other industries to benefit from shared resources, driving regional economic growth.
The GTL plant also incorporates carbon capture technology, aligning with North Dakota’s commitment to reducing carbon emissions and enhancing the market value of its products. These environmental benefits position the facility as a model for sustainable industrial development.
Economic and Environmental Benefits
The benefits of these projects extend beyond immediate job creation. Together, the pig iron facility and the GTL plant highlight how natural gas can fuel industries that deliver both economic and environmental advantages.
Job Creation and Workforce Development
These projects are expected to generate thousands of direct and indirect jobs, ranging from technical roles in engineering and manufacturing to positions in environmental management. By diversifying the state’s workforce, these opportunities strengthen North Dakota’s regional economies.
Sustainability and Land Reclamation
The pig iron project’s use previously mine of iron ore not only supports steel manufacturing but also contributes to land reclamation. Restored mining sites can be transformed into forests, wetlands, or recreational spaces, fostering ecological and community benefits.
Attracting Future Industries
These projects set the stage for advanced manufacturing and green industries in North Dakota. By producing low-cost, low-carbon materials, the state becomes a prime destination for companies seeking sustainable and energy-efficient solutions.
Governor Doug Burgum aptly described these initiatives as “game-changers,” emphasizing their potential to position North Dakota as a leader in both economic growth and environmental responsibility.
Strategic Investments Supporting Growth
North Dakota’s ability to attract and support transformative projects is underpinned by strategic investments. Programs like the Clean Sustainable Energy Authority and the North Dakota Development Fund provide crucial funding to projects that align with the state’s vision for economic diversification.
Funding for Cerilon
Cerilon has received $16.5 million in grants and $48.5 million in loans through the NDIC Clean and Sustainable Energy Authority along with $35 million through the North Dakota Development Fund, Inc. (NDDF). Their total project cost is $3.6 billion.
Support for Pig Iron Production
State funding for the pig iron facility underscores North Dakota’s proactive approach to industrial growth. By backing projects that leverage local resources, the state creates a favorable environment for industries to thrive.
These investments signal to global companies and investors that North Dakota is committed to building a resilient and diversified economy.
Building a Sustainable Future
North Dakota’s natural gas strategy is more than an economic initiative; it is a commitment to a stable and sustainable future for the state’s residents and industries. By investing in projects like the pig iron production and gas to liquids facilities, North Dakota is demonstrating that economic growth and environmental responsibility can go together. The state’s approach provides a model for how natural gas resources can be harnessed to support industries that prioritize efficiency, innovation, and sustainability.
In a world where economic and environmental demands are increasingly intertwined, North Dakota’s strategy highlights the importance of forward-thinking, resource-based economic planning. Through these investments, the state is not only ensuring a stable future for its residents but is also setting an example for other regions considering sustainable, reliable energy solutions.
A Blueprint for the Future
Increasing the utilization of natural gas within the state’s borders has provided North Dakota with a unique tool for economic resilience and diversification. By supporting projects like the pig iron facility, the state is expanding its industrial base and creating jobs, all while laying the groundwork for sustainable economic growth. As more industries recognize the advantages of operating in North Dakota, the state’s natural gas investments will continue to play a key role in attracting forward-thinking companies and contributing to a stable economic landscape.
Through these efforts, North Dakota is building a legacy of economic and environmental stewardship, showing how responsible energy utilization can lead to both immediate and long-term benefits. By remaining committed to diversification and sustainable growth, North Dakota is positioning itself as a model of resilience, ready to meet the challenges of a rapidly changing global economy.
For more information about locating or expanding in North Dakota, visit https://www.commerce.nd.gov/.
