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JULY 2006

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THE DAKOTAS


North Dakota's Focus Includes Energy, Technology

North Dakota Gov. John Hoeven
   North Dakota's thriving economic sectors in some respect mirror those of its southern neighbor with high technology and an array of energy projects among the growth areas. Gov. John Hoeven says there are a lot of synergies between the state's targeted industries of tech companies, value-added agriculture, advanced manufacturing, energy and tourism.
   "All five are making good progress and there are some real synergies between several of them," Hoeven says. "Clearly, energy independence is a big need. We see energy and value- added agriculture coming together. Over the last year, we have announced five large new biofuel plants – four ethanol and one biodiesel."
   Archer Daniels Midland, keeping both Dakotas covered, turned dirt in April on an 85- million gallon plant next to its oil crushing plant at Velva. The facility will convert canola oil from the oil- crushing plant into biodiesel, using the equivalent of one million acres of canola annually.
   The four announced ethanol plants are large by industry standards. Two will produce 50 million gallons and two will supply 100 million gallons annually.
   The state is helping propel the energy sector with a $2- million grant to North Dakota State University for its Center of Excellence for Agbiotechnology Oilseed Development. This supplements nearly $11 million in private investment in the project from companies including Monsanto, Dakota Skies Biodiesel and ADM.
   The Agbiotechnology Center will make available conventional and deregulated biotechnology lines of soybeans and canola with unique oilseed traits that have potential as biofuels, specialty lubricants and health care products.
   Spiritwood Industrial Park in Jamestown, a recently announced $350- million industrial complex, figures to further the state's energy efforts. The park will include one of the aforementioned 100- million- gallon ethanol plants, an expanded Cargill malt processing plant and a 40- megawatt coal- fired steam generating plant using the latest technology to power the entire complex. The facilities will employ 100 when operational.
   Hoeven notes that North Dakota is now the sixth largest energy exporting state with a combination of both traditional and renewable sources. He says fewer oil wells are producing much more oil.
   "Virtually all our oil wells are horizontal wells, rather than the old vertical wells," Hoeven says. "Now, we go vertical, but then two miles underground horizontally. In the past we drilled eight to 10 wells and now we drill just one to produce a lot more oil in a more environmentally friendly way."
   Fargo is one of the state's technology centers and research at North Dakota State University is putting the city on the nanotechnology map. Alien Technology, a developer of RFID products, recently opened a $15 million facility in the university's Research & Technology Park and has long-range plans for a further $25 million expansion.
   "Companies are coming in and taking advantage of NDSU research," Hoeven says. "We're in the processing of building a center for technology enterprise in the NDSU tech park, essentially an incubator."
   Fargo is also the headquarters for Microsoft's Business Solution Group, which employs 1,100 and recently announced plans to add 100 jobs.
   The state's logistics infrastructure is getting a boost with a $1.5 million federal grant to help develop a rail and truck intermodal park in Minot. The grant will go towards land acquisition and infrastructure development at the initial 180- acre (73- hectare) site. The state is hoping it will help attract the required $62 million in private- sector funding.
   Hoeven says the new facility will help create a comprehensive, statewide rail freight system. Burlington Northern Santa Fe Railway's planned fueling and maintenance facility in Minot, an investment of more than $20 million, is another piece in the state's logistics effort. Bismarck's Northern Plains Commerce Centre (NPCC) is currently focusing on a transloading facility with intermodal capabilities.

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