Excelsior’s new strategy?

Excelsior Energy is running large, color ads in the Mesabi Daily News thanking the Iron Range for all its support for their boondoggle coal gas power plant called the Mesaba Energy Project. Of course, the lobbyist-run company’s most important supporters are the ones on their political contributions list, but I suppose the sentiment is nice. The ad I saw reminds us that projects like Minnesota Steel, Polymet, U.S. Steel’s KeeTac expansion and others will require electricity, not unlike the overpriced electricity they propose to sell.

Damn, they’ve got a point! Those things WILL require electricity.

Small problem. The electricity that would be produced by Excelsior Energy, if they get permits and private funding (a long shot), will cost twice market rates and be available only when the plant is functioning properly, something they can’t promise with their experimental technology. Which means that any company relying on Mesaba’s power will operate at a competitive disadvantage and be more likely to fail.

Let me put this bluntly. Excelsior Energy has moved beyond just being a bad idea that has sucked and will continue to suck countless millions of state and federal taxpayer dollars away from other more worthy uses. Now its leaders are trying to attach themselves — no doubt through yet unknown legislation — to other projects likely to be permitted and built. This means that if this boondoggle ever gets built it will threaten the economic viability of EVERY NEW ECONOMIC DEVELOPMENT PROJECT on the Range. Oh, and also ALL THE MINES. (When mines must choose between overpaying for power and closing, they always close). People want jobs? Really? Then this project needs to have “an accident” and never be heard from again. Then we Iron Rangers start fresh with better ideas and real innovation.

Comments

  1. Aaron, you are a treasure! I couldn’t have said this better. Hopefully your incite will spur the mining community to start making noise to their legislative officials about the Mesaba Energy Project.

    I hope people keep in mind that the first of the twin plants being proposed at either the Taconite or Hoyt Lakes site is going to cost at least $2.2 billion (the cost is escalating and no one is acknowledging this). No one knows how much the cost of its twin, apparently not even Excelsior Energy. I asked them at the Hoyt Lakes hearing and the Excelsior representative, Mr. Stone, said he didn’t know!

    Come on Iron Rangers, if you want to keep your jobs, say NO to the Mesaba Energy Project!

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