Kilgore, Texas — Martin Product Sales LLC (MPS), a unit of Martin Resources, has announced exclusive multi-year agreements with Mississippi Power for the transportation and marketing of anhydrous ammonia and sulfuric acid to be produced at the utility’s 582-megawatt integrated coal gasification combined cycle (IGCC) power plant in Kemper County, Miss., currently under construction. Initial production is slated for mid-2014. Ammonia capacity will be approximately 22,000 st/y, with sulfuric acid at 225,000 st/y. The IGCC plant is projected to cost some $2.76 billion. As of March 31, 2012, some $1.3 billion has been spent on the plant. A lawsuit by the Sierra Club has complicated matters. In June, the Mississippi Public Service Commission (PSC) denied Miss Power any cost recovery on the plant until the legal challenges by the Sierra Club have been resolved. This denies Miss Power’s ability to collect financing costs of the plant while under construction, which the utility says will ultimately make it more expensive for ratepayers. Miss Power is appealing the PSC ruling to the Mississippi Supreme Court. The plant will use locally mined lignite from a mine adjacent to the plant. Miss Power will own the mine and has executed a 40-year agreement with Liberty Fuels Co. LLC, a unit of The North American Coal Corp., to develop, construct, and manage the mining operations. The cost of developing the mine is put at $245 million. The mine is slated to be in service in June 2013. The IGCC plant will also produce by-product CO2. Denbury Resources Inc., Dallas, agreed in 2011 to purchase 70 percent of the CO2 captured from the facility. Miss Power will deliver an estimated 115 mmcf/d of CO2 to Denbury’s Heidelberg Field in Jasper County, Miss., with first deliveries expected in 2014.
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