Jeffersonville, IN, Nov 2 -  

Congressman Mike Sodrel (R-IN) recently applauded plans for the nation’s first coal-to-natural gas plant to be built in Southwest Indiana, providing cheaper American-made fuel for Indiana and the region.

“This is a major announcement for Indiana, not only as we continue to be on the leading edge of energy independence for America, but as we move toward cleaner fuels such as bio-fuels and clean-burning natural gas,” Sodrel said. “With the advancements in safer mining techniques and clean-coal technology, Indiana and the rest of the Midwest is in a great position to significantly lessen our dependence on foreign sources of energy. I am proud to support these initiatives through legislation such as last year’s energy bill.”

The plant, which is scheduled to come online in 2011, would create 300 new jobs for Indiana’s coal industry and 125 permanent jobs at the plant as well as about 1,000 construction jobs for four years beginning in 2008. The plant should also benefit consumers by reducing natural gas prices by 22 percent, less than the average price of natural gas delivered to Indiana over the past three years.

The project is being developed by Indiana Gasification, LLC, and will include a methanation process to produce pipeline quality substitute natural gas (SNG), which has an identical molecular structure to that of natural gas. It would produce 40 billion cubic feet of pipeline quality SNG annually, which is enough to supply 15 to 20 percent of Indiana’s residential and commercial gas demand. Its use is projected to save consumers more than $3.7 billion over the next 30 years versus the price of conventional natural gas, according to a study by Carnegie-Mellon University faculty.

The plant will use GE Energy’s gasification technology which converts hydrocarbon feedstock into synthesis gas, a mixture of hydrogen and carbon monoxide. Gasification is one of the key technologies used in Integrated Gasification Combined Cycle. In this project’s application, rather than producing electricity as the primary output, the methanation processes will produce SNG. The plant will operate with extremely low emissions of regulated air pollutants and will isolate carbon dioxide (CO2) so that it can be captured. The project will work with the Indiana Geological Survey to develop a CO2 sequestration demonstration project.

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