Senator Andrew Mathews (R–Princeton) today introduced legislation to preserve jobs and supply continued energy production for a longtime employer in Becker. Senate File 4920 would provide a grant to Liberty Diversified International (LDI) to study and develop an energy generation facility in Becker.
“Liberty ran off of steam that Sherco was generating and the company is looking for alternative resources so they can stay viable to keep making paper,” said Sen. Mathews. “After the study, there will be significant private investment to construct this and help LDI operate into the future. They’ve been a valuable partner in our community and have a lot of community support to keep it that way.”
The appropriation would come from the state’s Renewable Development Account and is targeted for Fiscal Year 2027. This would give LDI several years to develop an alternative energy source before the Sherco plant closes at the end of 2030, allowing the company to continue its operations in Becker and protect important jobs for the local economy.
The study will look at developing an energy generation facility that converts food waste and other organic materials into renewable natural gas and other clean energy, replacing the waste steam that LDI currently recycles from the Sherco coal plant. The current closed-loop system allows LDI to capture and reuse steam from Sherco for its paper operations, then return the repackaged steam back to Sherco, creating an efficient, sustainable partnership that has benefited both companies since 1995.
Jim Morgan, President and CEO of Liberty Diversified International, testified in support of the bill.
“Liberty Diversified is a 108-year old family business that employs 700 team members in Minnesota, including 150 in Becker with an average compensation of $90,000 per year,” said Morgan. “Liberty Paper converts 1,000 tons a day of old corrugated containers gathered in the region which then produces 800 tons of paper a day. Since 1995 it’s been an incredibly mutually beneficial relationship with Xcel and we expect to continue that mutually beneficial relationship far into the future.”
Greg Lerud, Becker City Administrator, also testified in support of the bill:
“Once the plant fully retires, it will no longer produce the steam critical to Liberty Paper, which is one of their most valuable assets at the Becker location, and critical to their entire operation in Minnesota,” said Lerud. “Senate File 4920 is a solution to this issue. There could not be a more appropriate use for these funds; Renewable Development funds for the purposes of assisting a paper recycling facility by using the funds to study sustainability and a biomass energy facility to produce the necessary energy for Liberty Paper.”
Senate File 4920 is included in the Senate Energy Omnibus bill.