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Benefits to Minnesota

In October 2006 the University of Minnesota Duluth (UMD) Labovitz School of Business and Economic Research conducted a study on "The Economic Impact of Constructing and Operating An Integrated Gasification Combined-Cycle Power Generation Facility on the Iron Range."  The report found that the Mesaba Energy Project will bring many benefits to the State of Minnesota.  The following information is a portion of what is available in the full report.  Click here to view the full report.

In Summary


  • Over the course of the Mesaba One construction period full-time, part-time, and temporary construction jobs peak at 1,555
  • An additional 1,966 new full-time, part-time, and temporary jobs are created during the peak year in other sectors across the Arrowhead region, as a result of the creation of Mesaba One construction jobs
  • A total of 107 permanent jobs at the plant are created once Mesaba One begins operations
  • An additional 143 new full and part-time jobs in other sectors across the region are created, caused by the creation of jobs in the typical year of operations of Mesaba One.
Economic Impacts from Construction of the Mesaba Energy Project:

Summary: Economic Impacts of Mesaba One's Construction Expenditures

State of Minnesota and Arrowhead Region, 20082011 (2005 Dollars)

  Arrowhead Region Minnesota
Year Total Value Added Employment Totals Total Value Added Employment Totals
2008 $135,141,055 1,746 $170,310,659 2,118
2009 $276,740,596 3,521 $341,358,521 4,188
2010 $149,304,573 1,873 $180,646,455 2,188
2011 $25,977,172 344 $33,978,679 432
Total $587,163,396 N/A $726,294,314 N/A

The table above summarizes employment and total value added (wages, rents, interests and profits) for the first unit of the Mesaba Energy Project. The detailed break-down of these impacts are highlighted in the UMD report.

Construction of the plant is expected to have immediate and beneficial impacts beyond simply creating jobs in the construction sector. Just as the expenditure of Mesaba One's capital for construction costs will result in increased consumer spending across the Arrowhead region, Mesaba One's creation of construction jobs is calculated to cause the creation of almost two thousand full-time, part-time, and temporary jobs in sectors other than construction.

Economic Impacts from Operations of the Mesaba Energy Project:


Summary: Economic Impacts of Mesaba One's Operations Expenditures

2010, 2011, and Typical Year (2005 Dollars)

  Arrowhead Region Minnesota
Year Total Value Added Employment Totals Total Value Added Employment Totals
2011 $84,749,275 65 $89,463,990 72
2012 $257,723,155 185 $272,060,689 199
Typical $370,182,128 250 $390,775,856 273