Sitnasuak Native Corp Awarded $4.5m Grant for New Fuel Tanks

The U.S. Department of Commerce (DOC) has awarded a $4.5 million grant to Nome-based Sitnasuak Native Corporation to install new fuel storage tanks. The grant was announced Tuesday by U.S. Secretary of Commerce Gina Raimondo. 

In the announcement, Secretary Raimondo shared the broader goal of the Biden-Harris Administration’s investment in critical infrastructure. 

“This EDA investment will support energy infrastructure improvements in Nome, Alaska that will help build economic resilience by keeping jobs in the region,” Raimondo said.

Sitnasuak Native Corporation, through its subsidiary Bonanza Fuel, LLC, is the predominant supplier of fuel in the region. Bonanza currently operates a 5.9-million gallon tank farm at the Port of Nome, which receives and delivers bulk fuel to marine fuel barges.

Bonanza Fuel, LLC's tank farm, left, near the Port of Nome. Google Earth.
Bonanza Fuel, LLC's tank farm, left, near the Port of Nome. Google Earth.

According to a press release announcing the grant, the new tanks will serve as the region’s primary gasoline and heating oil source. The EDA investment is expected to retain 817 jobs and attract an estimated $5 million in private investment, according to Sitnasuak Native Corporation’s projections. The grant will be matched by $12.7 million in local funds.

Two members of Alaska’s congressional delegation weighed in on the award. U.S. Senator Lisa Murkowski emphasized the importance of energy resilience, especially in the wake of 2022’s Typhoon Merbok. 

“Building strong, resilient, and secure energy systems is imperative for our rural communities,” Murkowski said. “This investment from the EDA will promote energy security and economic opportunity for Sitnasuak, Nome, and the broader region.”

Representative Mary Peltola echoed Murkowski’s sentiment, celebrating the project as a win for both the region’s energy future and its tribes.

“This is a huge win for Nome—both for energy and Tribal self-determination. Proud to have voted to pass this important bill and bring home this win for Alaska.”

- Rep. Mary Peltola

The $4.5 million grant was funded through the Disaster Relief Supplemental Appropriations Act signed into law by President Joe Biden at the end of 2022. The act provides resources for communities recovering from natural disasters, like Typhoon Merbok, as declared under the Robert T. Stafford Act. 

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