STATUS: In progress with opposition
OPPOSITION: Environmental: Sierra Club
BACKGROUND: The proposed $2-6 billion plant would produce 20,000-40,000 barrels of liquid fuel per day from both coal and biomass. The plant would provide a solution to high energy costs in Fairbanks as well as manufacture jet fuel. In May, 2008, Fairbanks Economic Development Corp. (FEDC) signed a contract with Toronto-based engineering firm Hatch Ltd. to conduct a $550,000 screening study on a potential coal-to-liquids (CTL) plant in Fairbanks, Alaska. Also, FEDC has been working with the US Air Force with respect to plant development. The proposed plant would use the Fischer-Tropsch chemical conversion process – a process that converts coal and natural gas to liquid fuels. The facility would generate 60-200 megawatts of power and produce jet fuel, diesel and home heating oil. The coal-to-liquids plant could potentially supply fuel at a cost of approximately $2 per gallon about the same price customers pay when oil is going at $88 per barrel. The plant is opposed by environmental groups due to alleged “greenhouse gas emissions” concerns.
LAST UPDATED: November 5, 2010