STATUS: In progress
OPPOSITION: Citizens Action Coalition of Indiana, Sierra Club
BACKGROUND: In 2006, Indiana Gasification LLC announced plans to build a coal gasification plant in Spence County to make pipeline quality natural gas from eastern coal. In 2008, the developer withdrew its application with the Indiana Utility Regulatory Commission, stating that negotiations to sell the plant's output to Indiana utilities had failed, making it impossible for the project to proceed. In early 2009, the Indiana General Assembly approved legislation empowering the State to enter into a 30 year contract to purchase the synthetic gas, which would amount to about seventeen percent of the State’s total usage. In late 2009, the Department of Energy announced its intent to issue the developer a federal loan guarantee of $1.8 billion to support a $2.3 billion project. The NEPA review process is in progress.
Opponents of the project are environmental groups that oppose the use of coal for any purpose. To date, their activities have been limited to submitting comments criticizing the project due to its potential impact on electric rates and its use of coal.
Last updated November 16, 2010