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Senate committee considers $5 million for Shakopee biomass plant to process emerald ash borer wood
Summary
Senator Pratt presented Senate File 24‑56 asking for $5 million from the Renewable Development Account to help Koda Energy process emerald ash borer‑infested wood and support baseload renewable power at a Shakopee biomass plant.
Senator Pratt presented Senate File 24‑56 on March 24, asking the committee to allocate $5,000,000 from the Renewable Development Account to Koda Energy to buy equipment that would dispose of wood infested by the emerald ash borer and support a baseload renewable electricity source.
The proposal centers on Koda Energy, a combined heat-and-power biomass plant in Shakopee owned by Rahr Malting Company and operated in partnership with the Shakopee Mdewakanton Sioux Community. Stacy Cook, vice president of sustainability for Rahr Corp and president of Koda Energy, told the committee Koda replaced a large portion of the plant’s natural gas use with biomass heat when it came online and is seeking additional capacity to accept metropolitan-area wood waste.
"The 7‑county metro area is in critical need of additional EAB infrastructure," Cook said, citing a 2023 Cambian Carbon report that estimated roughly 530,000 tons per year of emerald ash borer (EAB) waste would enter the metro waste stream over several years. Cook described a planned West Metro processing site that would initially handle about 14,000 tons per year for Koda’s own use and would sort and upcycle saw logs, produce heat for Rahr’s kilns, and explore biochar and other markets.
Cook told the committee the 2023 Legislature approved $3,000,000 toward a wood dehydrator project that is now in permitting and that MPCA grant contracts for that work had been approved. She said Koda already mixes agribusiness byproducts with wood waste and sells excess electricity under a negotiated power purchase agreement with Xcel Energy.
Senator Pratt said the project ties environmental response and renewable energy: "Koda Energy can be a reliable partner in eradicating the emerald ash borer while providing renewable baseload energy."
The committee adopted an A‑1 amendment by voice vote and laid Senate File 24‑56 over for possible inclusion in the omnibus bill. The committee noted the bill would be considered later in omnibus negotiations; no final appropriation or enactment occurred in this hearing.
Votes at the committee hearing were taken by voice; the record shows the A‑1 amendment was adopted and the bill was laid over for possible omnibus inclusion.
Clarifying details from testimony: the bill requests $5,000,000 from the Renewable Development Account; a 2023 Cambian Carbon analysis was cited estimating about 530,000 tons/year of EAB‑related woody waste in the 7‑county metro; a prior $3,000,000 RDA appropriation for a wood dehydrator was described as in permitting with MPCA grant contracts approved.
The committee laid the bill over for possible inclusion; no final state action was taken during this hearing.
