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(KNSI) – St. Cloud is once again named a Utility of the Future and the Public Services Department says it will continue to push the envelope.

At a Friday press conference, Mayor Dave Kleis and Director Tracy Hodel announced this area will be a testing ground for potential new green energy technologies. Demonstration-grade equipment that process renewable natural gas from food waste and splits hydrogen from water will be installed with the help of a $1.09 million state grant. St. Cloud’s municipal system is the only one across all of Minnesota to receive funding.

Hodel says the new technology will lead to business opportunities for the private sector.

“In fact, we have a local industry that would like to bring the production of hydrogen buses to St. Cloud. So, that’s an example of some economic growth opportunities that we have here.”

Hodel says the technology should also result in financial benefits for residents.

“It’s going to reduce our operating costs significantly. So, we will be able to have the energy use on-site instead of having to go off the grid or take energy from the pipeline itself for heating needs. We will be able to provide the same level of treatment but at a lower cost. So, that will keep our rates low.”

It is one of the first projects of its kind in the world.

Mayor Dave Kleis says if the system is successful, it will take out the wild swings in energy prices. Hydrogen is something we have in abundance and it can be a pathway to independence.

“In the future — hydrogen, if we produce that here, we’ll have our own source, so we won’t be reliant on anybody else in the future.”

Buses already run on natural gas. Hydrogen could potentially replace it as a fuel for city vehicles, everything from police cars to snow plows. Kleis says the possibilities are boundless as electric vehicles and other green options struggle with range in northern cities during the winter.

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