Koda Energy, a joint partnership of the Shakopee Mdewakanton Sioux Community and Rahr Malting, broke ground for its renewable energy project on September 13, 2007. This innovative venture is a combined heat and power plant which will generate electricity and heat utilizing agricultural byproducts and grown energy crops. The project gets its name from the word “Koda” which means "friend" in the Dakota Language.

The groundbreaking was held on the Rahr Malting campus in Shakopee, Minnesota, on Highway 101, approximately seven miles from the Shakopee Mdewakanton Sioux Community.

This environmentally friendly project, considerably cleaner than a coal plant, will some day be able to provide energy for most SMSC needs. The project will provide 100% of the energy and heat needed by Rahr in its work as one of the world's largest producer of malt and brewing supplies.

The Shakopee Mdewakanton Sioux Community and Rahr Malting formed Koda Energy, a Limited Liability Company, in 2006 to build and operate the facility. The facility is expected to be operational by December 2008.