Senate panel boosts two energy projects

04/11/2006

Two Iron Range energy projects — a coal gas power plant in Itasca County and a wood-fueled biomass project for Virginia and Hibbing — are on track to get property tax exemptions after approval last week by the Senate Tax Committee.

The Senate tax bill includes both exemptions. The House Tax Committee is expected to consider the exemption for the Itasca County project later this month.

Excelsior Energy plans to build a plant north of Taconite using coal gasification, a technology that results in fewer emissions than traditional coal-fueled power plants. The bill would require construction of the first 500 megawatts by 2010 and another 750 megawatts by 2015.

The exemption for the Virginia and Hibbing biomass project — converting city boilers to run on wood — was added to the tax bill as an amendment from Sen. David Tomassoni, DFL-Chisholm.

—Associated Press