Alternative Energy & Fuels

ND: MDU Resources and Calumet to Build $300M Diesel Refinery, Create Jobs

11 Feb, 2013

Gov. Jack Dalrymple, MDU Resources Group, Inc. announced plans to build a diesel refinery in southwestern North Dakota. MDU Resources and Indiana-based Calumet Specialty Products Partners have formed a joint venture, Dakota Prairie Refining, to build and operate a refinery capable of processing 20,000 barrels of Bakken crude oil per day. The plant will produce diesel fuel and other hydrocarbons.

The refinery's design and engineering work are in the final stages and construction may begin as soon as this spring. Plans are to build the refinery on a 318-acre site about four miles west of Dickinson.

"The development of another refinery has been a long-time goal of our state and with this project we are achieving that goal," Gov. Jack Dalrymple said. "The decision by MDU Resources and Calumet to move forward on a new diesel refinery is good news for North Dakota and the entire nation.

"This project will be built by the private sector. It will create more jobs, it will help to further diversify our economy and it will increase the region's supply of diesel fuel," Dalrymple said. "Our Department of Commerce will continue working with MDU and Calumet to move this project forward."

The plant will employ approximately 100 people. Hiring and training of operating personnel is expected to begin in 2013. The plant's construction is expected to cost between $280 million and $300 million.

Gov. Dalrymple met with company officials from MDU Resources and Calumet in March to discuss their plans to build a diesel refinery in western North Dakota. During that meeting, Dalrymple told company officials that the state will continue to assist MDU Resources and Calumet Specialty Products throughout the planning process.