FULL OF ENERGY

Lyon County Generating Station groundbreaking

Groundbreaking for Lyon County

Generating Station and Minnesota

Energy Connection Transmission line signals new era in clean energy

A year ago at this time, the 100 or so people attending Monday’s groundbreaking of Xcel Energy’s Lyon County Generating Station just north of Garvin would’ve been standing in a field of tall corn or flourishing soybeans. Today, the area that borders the east side of Hwy. 59 is flat ground covered by compacted gravel.

And while it might look like just a rural construction site now, home to numerous pieces of heavy equipment, the landscape will continue to change. If all goes as planned, on-demand power generation will be supplied to the region by 2028 thanks to the facility.

“Anybody who has spent time in southwest Minnesota knows that this region has always helped power Minnesota’s success,” said Bria Shea, Xcel Energy president, Minnesota-North Dakota-South Dakota. “Today, it is helping build Minnesota’s energy future as well.”

Shea was speaking to a large crowd that included Xcel Energy executives and project leaders, project partners, and organized labor; and local, state and federal elected officials.

Shea said one of the main reasons the Garvin site was chosen for the project is the infrastructure — Xcel will not have to build a significant amount of pipeline to support the gas plant.

“Honestly, it’s also the community support,” she said. “We have had this in play for several years, and the landowners, commissioners, personnel supporting this — that is not the case everywhere. When you have that support, it just makes building a project of this magnitude that much easier.”

Xcel Energy is actually touting the beginning of construction on two projects in southwest Minnesota: the generating station — a 420-megawatt natural gas plant — and the Minnesota Energy Connection transmission line.

Xcel says these projects will provide key investments in the region, spur economic development, provide tax revenue to support communities, and help maintain reliable electric service as Xcel Energy adds more renewable energy and transitions away from coal generation.

The natural gas plant will provide on-demand generation to meet energy needs when demand is highest and when renewable energy is not available. Up to 4,000 megawatts of new wind and solar resources may eventually connect to the Minnesota Energy Connection transmission line. The 185mile 345 kilovolt project will connect to the grid at the Garvin Substation, adjacent to the Lyon County Generating Station, and end at the Sherco Energy Hub in Becker.

The construction of the plant, District 7 Congresswoman Michelle Fischbach said, is a true team effort that had the support of area communities, landowners and public officials. The construction will result in hundreds of skilled trade jobs — peaking at about 250 workers. “That means direct paychecks to local workers, lunch rushes at local restaurants, full hotel rooms and support for our main street businesses,” she said. “On top of that, this plant is set to generate about 300 million dollars in local property taxes — that is long-term revenue going straight toward funding our local public schools, fixing our county roads, supporting our First Responders and keeping the tabloid off of our rural residents.”

Shea acknowledged there has been some opposition to the project that has had boots on the ground since May of this year, but said that most people realize that retiring coal-generated electricity means other sources need to be accessed.

“This is significantly cleaner and yet is there at those critical times of the year when customers need it the most,” she said. “That helps get some of the otherwise naysayers on board. At the end of the day, we need a reliable energy system and this plant is a key component to that.”

The Minnesota Energy Connection and Lyon County Generating Station are expected to be completed in 2028.

The total estimated capital costs for the project are within the range of $650 million to $800 million.

• Xcel Energy also honored the Tracy Community Foundation, which has received a $10,000 grant to further STEM education in the region; and Southwest Minnesota State University students who earned scholarships funded through the Xcel Energy Foundation.