Agrium moves to Phase 2 for Kenai coal-gas study

Calgary-Agrium Inc. has decided to continue with Phase 2 of a coal-gasification project that would serve its Kenai, Alaska, nitrogen plant. This after the Department of Energy concluded Phase 1, giving the nod to future coal-gas development. “There are differences between what the Department of Energy looked at and what Agrium is considering,” Agrium’s Lisa Parker told Green Markets. “Despite the differences – DOE examined an IGCC (integrated gasification combined cycle) plant and Agrium eliminated this option – there are some areas where the study compliments the work that Agrium has been doing these past two years. The DOE study came to the conclusion that it is technically and economically feasible to have a coal gasification facility here in Cook Inlet.” Phase 2 will include the beginning of environmental permitting, front end engineering design (FEED) study, and project financing. Parker said after Phase 2, Agrium will decide whether to continue to the next phase. Should it proceed, Parker said the company would focus on urea production, using existing plants and producing 3,200 mt/d. Agrium is looking at a pulverized coal method that would use less coal than that considered for the IGCC plant – it would use approximately one ton of coal per one ton of urea.