The lignite industry is a very important component of North Dakota's thriving energy sector. North Dakota holds the largest proven reserve of lignite coal in the world, which industry experts estimate to be more than an 800-year supply of economically recoverable lignite.
Lignite coal is mined commercially at four surface mine sites in the state. That lignite, in turn, produces power at six in-state power plants and several other commercial locations in North Dakota and around the region. A seventh in-state power plant, the Stanton Station, utilizes coal from the Powder River Basin.
North Dakota's lignite industry has an estimated annual impact of $3 billion and directly employs more than 4,000 people in the state. The approximately 30 million tons of lignite coal mined annually in North Dakota is used to generate electricity, produce synthetic natural gas and produce fertilizer products. According to the Energy Information Administration, North Dakota coal production accounts for nearly 2 percent of the nation's total production per year.
