coal gasification

A Legislative Committee had lots of questions during its meeting this week for Linc Energy. That company has plans for an underground coal gasification test project near the town of Wright. If it moves forward, it would be the first such project in the United States in decades. 

Many of the legislators’ questions echoed those that have been raised before, from the impacts of the process on water quality to the possibility of sinkholes.

Wyoming Governor Matt Mead says the plan by the Environmental Protection Agency to require carbon pollution limits on new power plants is too limited and hurts the state’s economy.  During a news conference, Mead was critical of the E-P-A for not following Wyoming’s lead and look at ways to develop clean coal technology.

“I think everybody should have an interest in how we do it in the most environmentally friendly way possible, but when you set a standard that nobody has done yet…to me it looks like you are just shutting off coal completely.”

It was standing room only at the Wright Public Library last night as residents packed into a hearing about a nearby project that would burn coal seams underground to produce synthesis gas or syngas.

Linc Energy’s proposed underground coal gasification project has been in the works for years, but from the public testimony, many Wright residents were hearing about it for the first time. And they had lots of questions about the process, which has never been developed commercially.

A new US Geological Survey study says that only a small percentage of coal in the Powder River Basin is cost-effective to mine in the current market. According to the USGS, there are more than one trillion tons of coal present in the Basin, of which 162 billion tons could technically be recovered. Of that, it would only be economically viable to mine about 25 billion tons in today’s market.

Project Chief for the US Coal Assessment Program, Jim Luppens, says new geologic data made the study possible.

The Carbon County Commission has approved
resolutions supporting a Texas company's plan to issue $545 million
in bonds to help fund construction of a planned $2 billion
coal-to-gasoline plant.
     The commission unanimously endorsed issuing $300-million in industrial
development bonds and $245 million in tax exempt bonds.
     DKRW officials have asked the State of Wyoming to purchase the
$300-million bond issue. The $245-million bond issue would be sold
on the open market.