Koda Energy is an environmentally friendly energy project which is a joint venture with the 166-year old company, Rahr Malting and the Shakopee Mdewakanton Sioux Community (SMSC). Considerably cleaner than a coal plant and considered CO2 neutral, this combined heat and power plant is the only facility in the United States which burns exclusively natural, non-manmade materials. Using a suspension boiler for maximum efficiency to burn only renewable products, its heat conversion rate is approximately 87% compared to coal, which is about 63%. Products burned in Koda Energy are primarily agricultural and plant seed byproducts, materials which do not deter land from use as row crops. This biomass energy generation project is able to provide energy for Koda Energy and Rahr Malting, with excess sold to Xcel Energy.
Electric power generated averages 19.7 megawatts, with net power generated at approximately 16.8 megawatts.The maximum electrical output from the generator is 24.1 megawatts. Amounts fluctuate, based largely on Rahr’s demand for heat. Rahr Malting uses the waste heat from the generation of electricity in their malting process. When thermal energy demand is high, electrical generation is lower. When thermal energy demand is low, electrical generation is higher.
Construction on Koda Energy began shortly after the September 13, 2007, groundbreaking. The facility began generating electricity in March 2009 and became fully operational in late May 2009.