Lignite reserves in this region were deposited by tons and tons of dead and decaying plants in a swampy atmosphere 50-to-70 million years ago, and the overburden above the coal was deposited there by runoff from the west as the Rocky Mountains formed.
The heating content of lignite is approximately 7,000 Btus per pound & its water content is about 35 percent.
North Dakota produces the seventh most coal in the nation, mining between 25 million and 30 million tons annually for the past four decades. With abundant water resources, lignite coal helps meet the high demands for a reliable and affordable source of electricity in the Upper Midwest.
Nearly 80 percent of the lignite coal mined annually in the state is used to generate affordable, reliable electricity, serving more than 2 million people in the region; about 20 percent is used to make synthetic natural gas that is delivered to 400,000 homes and businesses in the eastern United States, three valuable fertilizer products – urea, anhydrous ammonia and ammonium sulfate, along with carbon dioxide used for enhanced oil recovery and other valuable chemicals.
Maintaining a supply of coal at each coal-fueled power plant provides fuel security because on-site stockpiles of coal minimize the potential impact of fuel supply disruptions. Since North Dakota’s largest plants are sited next to the lignite mines, they have a nearly inexhaustible supply of fuel.
The United States has more coal (477 billion tons) than any other country and eclipses remaining U.S. oil and natural gas resources. North Dakota has the second largest known reserve of lignite in the world, second only to Australia. The abundance of coal is a competitive advantage as researchers look for newer and better ways to use this resource – not only to generate electricity but also to make fertilizers, chemicals and other valuable carbon-based products
North Dakotans benefit in multiple ways from affordable and reliable power generated at the state’s lignite-based power plants. Low-cost electricity helps farmers and businesses because it lowers their operational expenses and allows them to be competitive on an international level. It also promotes industrial and economic development, since low electricity costs attract new business and help retain our existing companies.
Low-cost electricity is particularly beneficial to our region as we consume high amounts of energy because of our weather extremes while enjoying some of the lowest electric rates in the nation.
Lignite-based power plants supply affordable, reliable electricity around the clock. The average price of electricity in 2023 from North Dakota’s lignite-based power plants was $27.15 per megawatt-hour. That compares with $32.29 for all U.S. coal-based power plants and $33.44 for U.S. natural gas-based plants. A megawatt-hour is enough electricity to serve about 800 homes with an hour’s worth of power.
Coal is our primary source of electricity in North Dakota and U.S. coal reserves represent the largest single unit of energy in the world, secure within the borders of one country.
Source: EIA US Electricity Profile 2023
North Dakota’s average electric rates are among the lowest in the U.S., and about 12,000 jobs in the state are due to the lignite industry. In fact, people working for the coal industry in North Dakota enjoy some of the state’s highest wages. North Dakota’s economy receives about $5.5 billion in total business activity due to coal, and about $100 million in state tax revenue annually.
