For more information:
Kay LaCoe – Vice President of Marketing & Communications
O: 701.355.2194 | C: 701.400.6757
kay.lacoe@lignite.com
FOR IMMEDIATE RELEASE – January 14, 2025
BISMARCK – The lignite industry continues to be a major economic driver for North Dakota, according to a new study by North Dakota State University (NDSU) Department of Agribusiness and Applied Economics. The study reveals that in 2024, the industry contributed an estimated $2 billion to the state’s gross domestic product (GDP), supported nearly 12,000 direct and secondary jobs, and generated $5.49 billion in gross business volume.
| What this tells you about lignite: Economic Driver: $2 billion to GDP and $5.49 billion in business volume in 2024. Job Support: Nearly 12,000 jobs and over $1 billion in labor income. Community Impact: $100 million in tax revenues and a legacy of clean air leadership. |
“The results of the study underscore the essential role the lignite industry plays in North Dakota’s economy,” said Dean Bangsund, research scientist at North Dakota State University. “From creating high-paying jobs to generating more than $5 billion in economic activity, the industry’s impact is substantial.”
Significant contributions to workforce
In total, lignite-related jobs generated more than $1 billion in labor income, which includes wages, benefits, and sole proprietor earnings. The study highlights the diverse employment opportunities supported by the lignite industry, including:
- 7,310 jobs in coal conversion and electricity generation across the state.
- 3,400 jobs in mining.
- 1,610 jobs in transmission and distribution.
“The NDSU survey clearly demonstrates the strong economic ripple effect of the lignite industry,” said Kay LaCoe, vice president of marketing and communications for the Lignite Energy Council. “While about one-third of these jobs are concentrated in Mercer, McLean, and Oliver Counties, the remaining positions extend across the Midwest, benefitting many communities and industries.”
Economic impact and business volume
Beyond job creation, the study highlights the lignite industry’s substantial contributions to North Dakota’s overall economic health. In 2024, the industry accounted for $2.0 billion in gross domestic product (GDP), representing a significant share of the state’s economy.
Additionally, the study reported a gross business volume of $5.49 billion, driven by extensive economic activity generated through the production, conversion, and distribution of lignite-based energy. This includes expenditures on equipment, services, and materials sourced from businesses across the Midwest, driving growth in related industries.
Furthermore, the industry contributed $100 million in state and local tax revenues, providing critical funding for public infrastructure, education, and community services. These figures highlight how the economic impact of lignite reaches well beyond the state’s coal-producing counties.
Environmental excellence
North Dakota’s coal industry is proud of its legacy of environmental stewardship. The state remains:
- One of only four states to never violate federal ambient air quality standards.
- One of 17 clean air states, as reported by the Environmental Protection Agency.
These achievements result from decades of innovation, including $2 billion in investments in clean coal technologies, and the tireless efforts of industry workers dedicated to preserving North Dakota’s land, air, and water.
Despite ongoing federal regulatory challenges, the lignite industry continues to demonstrate resilience. The 2024 economic impact mirrors that of previous years, reinforcing the industry’s unwavering contributions to North Dakota’s economic viability.
The study, commissioned by the Lignite Energy Council, has been produced by NDSU’s Department of Agribusiness and Applied Economics since 1982.
About the Lignite Energy Council
The Lignite Energy Council, the voice for North Dakota’s coal industry, is a regional trade association representing lignite producers, electric utilities, and more than 200 businesses that supply goods and services to the mines and plants. The Council plays a vital role in supporting an industry that generates approximately $5.5 billion in gross business volume annually and contributes $100 million in state and local tax revenues. The lignite industry also facilitates nearly 12,000 direct and indirect jobs across the state, strengthening North Dakota’s economy and energy landscape.
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