Building a refinery in South Dakota is a massive undertaking, but the state has historically shown a willingness to entertain such projects. To find the “best” place for a 100-acre facility, you need to balance two things: logistics (where the oil and pipelines are) and community buy-in (who actually wants the jobs and tax revenue).
Here is a breakdown of the most viable regions and communities for your project.
1. The Southeastern “Tri-State” Region (Union County)
This is historically the most vetted location for a refinery in South Dakota. In the late 2000s, the Hyperion Energy Center was proposed for this area.
- Why it works: It is near the intersection of South Dakota, Iowa, and Nebraska. It offers excellent access to the I-29 corridor, rail lines, and the Missouri River.
- The Community: Elk Point or North Sioux City. While the original Hyperion project eventually stalled due to market changes, the local government and voters in Union County actually approved the zoning changes and expressed significant support for the project at the time because of the massive tax base it would provide.
- Acreage: This area has vast tracts of flat, agricultural land. Finding 100+ acres near industrial infrastructure is very feasible here.
2. The Western “Black Hills” Edge (Fall River or Custer County)
If you want to be closer to the actual source of production (the Bakken formation to the north and Wyoming’s oil fields to the west), the western edge of the state is your best bet.
- Why it works: Proximity to existing oil and gas activity in the Williston Basin.
- The Community: Edgemont or Hot Springs. Edgemont, in particular, has a history of welcoming “tough” industrial projects (like large-scale storage and energy facilities) that other towns might reject. They have a strong rail presence (BNSF) which is critical for moving refined products.
- Acreage: Land is generally more affordable here than in the eastern part of the state, and 100-acre parcels are plentiful.
3. The Central Logistics Hub (Beadle or Hughes County)
- Why it works: Being in the center of the state allows for easier distribution to all four corners of South Dakota.
- The Community: Huron. Huron is known for being extremely aggressive and welcoming toward industrial development. They have a dedicated “Greater Huron Development Corporation” that actively seeks out manufacturing and value-added energy projects.
- Infrastructure: Excellent rail access and a community that is used to the sights and sounds of heavy industry (like large-scale meat processing).
Critical Considerations for Your Search
| Factor | Requirement | South Dakota Context |
|---|---|---|
| Zoning | Industrial/Heavy Industrial | Most counties require a Special Use Permit or a petition to the County Planning Commission. |
| Water | Massive quantities | You will likely need to be near the Missouri River or have access to a major aquifer, requiring permits from the Dept. of Agriculture & Natural Resources (DANR). |
| Air Quality | “Title V” Permits | This is the biggest hurdle. South Dakota has strict “Best Available Control Technology” (BACT) standards for emissions. |
Which community would want it?
In South Dakota, the “economic underdog” towns are your best partners. Avoid the high-growth residential corridors of Sioux Falls or Rapid City. Instead, look toward:
- Edgemont: Highly industrial-friendly, desperate for high-paying jobs.
- Huron: Proven track record of supporting large-scale industrial builds.
- Belle Fourche: Already an industrial hub for bentonite and rail shipping.
Pro-Tip: South Dakota is a “local control” state. Before buying land, you should meet with the County Commission of your target area. If the commission isn’t on board, the state permits won’t matter, as local zoning can block you before you even break ground.
Are you planning on refining crude from the Bakken, or are you looking at synthetic/bio-fuel options?