When Xcel Energy announced plans to retire two of its three coal-fired power generating units at the Sherburne County Generating Station (SHERCO) in Becker sometime after 2023, it left a significant hole in the city's long-term economic development plans. As the largest coal-fired power plant in the upper Midwest, the SHERCO plant drives more than 70 percent of Becker's tax levy and employs nearly 350 people.
 
But new plans have emerged that may salvage jobs and tax revenue alike, thanks to a partnership between the City of Becker, Minn., Wenck and project VONCO.  The partnership successfully secured a USDA Rural Business Development Grant which will fund a feasibility study to evaluate a potential new use for the plant - converting organic waste into renewable transportation fuel.
 
"Rural small businesses have a significant influence on the economic success of rural America," said Minnesota State Director for USDA Rural Development Colleen Landkamer. "This funding is just one of the many steps USDA has taken to promote economic development, encourage job creation, and support infrastructure in rural communities."
 
Economic development topics to be evaluated under the study include financial augmentation for existing businesses, new employment opportunities, and industry diversification.
 
"VONCO is excited to be a part of the feasibility study, as we believe the results will help guide the development of landfill alternative technologies that are at the forefront of future development plans for our company to remain a steward of the environment in our community," said VONCO President Ian Vagle.
 
Becker City Administrator Greg Pruszinske said the city is committed to creating a prosperous local and regional economy by encouraging sustainable ventures that would result in job growth.
 
"This feasibility study is the first step in building a large scale biofuels plant in Becker," Pruszinske said. "It's also our next step to create a sustainable community while capitalizing on the assets we currently have in place."  
 
The changes at the SHERCO site are the result of Xcel Energy replacing existing generating capacity with a new natural-gas combined cycle unit and solar installation, which will require only a fraction of the labor to operate. It is anticipated approximately 150 full-time jobs at the plant may be lost as a result of the unit shut-down.

The associated tax base and economic implications for the City of Becker could be significant.  With two of three units potentially shutting down, more than half of the current tax levy may likely be compromised ($3.3M of a total $6.1M).
 
Erin L Heitkamp, Global Sustainability Practice Leader for Wenck, underscored the economic opportunity that the biofuels project represents.
 
"There is a community and regional need for economic growth and diversity, and this project represents a perfect opportunity to capture the full value inherent in waste organic materials through the creation of jobs, economic growth, and environmental benefits." 
 
Wenck | www.wenck.com