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Lima Energy IGCC Station, Ohio

STATUS: In progress, with opposition

TYPE: Coal


BACKGROUND: In 2000, the developer proposed a 580 megawatt base load IGCC plant.  It was approved by the Ohio Power Siting Board in 2002. The proposal was amended in 2004 and again approved.  In January 2005, the developer announced construction of a 600 megawatt plant. Construction and air permits were issued and preliminary work began in 2005. However, construction was halted due to financing concerns and the project has been delayed.

Sierra Club notified the developer in January 2008 of its intention to sue alleging the developer lacked valid permits. In the summer of 2009, the developer applied for and was denied a $25 million loan/grant from the state Advanced Energy Job Stimulus Program. Reportedly, the proposed plant was a coal-to-synthetic natural gas plant, not an IGCC plant and the application stated that the plant will gasify approximately 930,000 tons of Ohio coal and will capture and sequester 100% of the CO2 emitted by the plant.  The developer also reportedly acknowledged that modifications to existing permits and approvals, such as the air permit to construct issued by the Ohio EPA and the Certificate of Need and Environmental Compatibility approved by the Siting Board will be needed.  However, it does not appear applications have been filed.   In August 2009, Sierra Club again notified the developer of its intention to sue should construction begin on the grounds that the permit expired in 2004.

In March 2010, press reports indicated a financial restructuring had reinvigorated the project. Construction cost estimates have ranged from $775 million in 2005. In July, Ohio announced a stimulus grant to support road work for the “Lima Energy Company’s” project.  In November, the developer reaffirmed its commitment to the project as well as the extent of the funding barriers it faces.

SOURCES: http://www.globalenergyinc.com/lima

LAST UPDATED:  December 2, 2010