The “Net-Zero Industry in Minnesota” report is published by 5 Lakes Energy, with support from the Great Plains Institute, Fresh Energy, and the Natural Resources Research Institute (NRRI)
A new report examining Minnesota’s industrial sector and its path toward net-zero emissions highlights both the urgency and the opportunity facing the state’s manufacturing economy over the next decade. The “Net-Zero Industry in Minnesota” report provides the first coordinated, statewide framing of industrial decarbonization needs, challenges, and strategic options — and establishes a foundation for a forthcoming comprehensive industrial decarbonization roadmap.
Manufacturing is a cornerstone of Minnesota’s economy, supporting more than 8,500 manufacturers and approximately 323,000 jobs statewide. However, our state’s industrial sector is at a critical inflection point as emissions from the sector continue to rise. The report finds that emissions are highly concentrated: just 59 manufacturing facilities account for the majority of the sector’s emissions, with seven subsectors — representing only 37 facilities — responsible for an estimated 87% of Minnesota’s manufacturing-related carbon dioxide emissions. This concentration presents both a challenge and a strategic opportunity to target high-impact solutions.
The preliminary report was led by 5 Lakes Energy, with support from the Great Plains Institute, Fresh Energy, and the Natural Resources Research Institute (NRRI). Together, the project partners engaged a wide range of stakeholders to assess Minnesota’s industrial landscape and identify priority pathways for progress.
“Minnesota has a narrow window to make smart, strategic choices about how its industrial sector evolves in a rapidly changing energy and economic landscape,” said Elizabeth Boatman, Lead Consultant of 5 Lakes Energy’s Industrial Decarbonization Team. “This report provides a shared foundation for coordinated decision-making — helping the state focus limited resources where they can deliver the greatest emissions reductions while supporting competitiveness, jobs, and long-term resilience.”
The report profiles Minnesota’s industrial sector, defines priority decarbonization strategies and technical approaches, examines systemic and industry-specific barriers, and presents diverse stakeholder perspectives. It also outlines key near-term actions the state can pursue now — while laying the groundwork for a follow-up study that will advance detailed technical, economic and infrastructure analysis, identify near-term deployment pathways, and support coordinated implementation planning across sectors.
“This report makes clear that industrial decarbonization is not just a climate imperative — it’s an economic one,” said Brandon Isakson, Managing Director of Heavy Industry at Fresh Energy. “By taking a coordinated, data-driven approach, Minnesota can reduce emissions while strengthening its manufacturing base, supporting workers, and positioning the state as a leader in clean, competitive industry.”
Building on this foundation, the next phase of work will focus on translating these insights into actionable, near-term opportunities — including identifying enabling conditions, sequencing investments, and prioritizing near-term emissions reductions pathways.
“Thanks to this report, Minnesota now has a shared foundation for understanding where industrial emissions are concentrated, and where we can focus to drive the greatest reductions,” said Jamie Alexander, Director of External Affairs at NRRI. “It also lays the groundwork for what comes next: an actionable, statewide roadmap that prioritizes early wins where progress can be made quickly and effectively, while aligning infrastructure, investment and policy to support longer-term industrial transformation.”
“Minnesota has a real opportunity to lead the next generation of industrial innovation in a way that strengthens both our economy and our climate goals,” said Louise Miltich, Executive Vice President for the Great Plains Institute. “By advancing integrated solutions across core industries, the state can demonstrate a model for the nation — showing how to reduce emissions, strengthen supply chains, and create high-quality jobs while keeping U.S. industry competitive in a rapidly changing global economy.”
The report, which can be viewed here, is designed to support elected officials, state agencies, utilities, industry leaders, and other decision-makers as they navigate the complex transition ahead. It aligns with Minnesota’s newly updated Climate Action Framework, which establishes a long-term climate vision for the state while recognizing the immediacy of climate impacts and the need for action across energy-intensive manufacturing, the power sector, buildings, and closely linked agricultural and forestry industries.
By providing a shared, stakeholder-informed foundation, the “Net-Zero Industry in Minnesota” report enables more deliberate decision-making about where to focus limited resources, which industrial segments to prioritize, which technologies and pathways merit near-term investment, and how actions should be sequenced over time.
The report represents a critical first step toward ensuring Minnesota’s industrial sector remains competitive, resilient, and aligned with the state’s net-zero goals — while supporting workers, communities, and economic growth across the state. View the report here.