Southeast Idaho Energy (SIE), a unit of Refined Energy Holdings, Mount Kisco, N.Y., has indicated that any new coal gasification facility in American Falls, west of Pocatello, Idaho (GM Dec. 10, 2007), would focus on nitrogen fertilizers, and not diesel fuel and electricity generation. SIE revealed this information in filing an amended air permit application with the Idaho Department of Environmental Quality to substantially reduce air emissions from its previous estimates at the coal gas plant.
SIE originally announced the project would cost $2 billion – $1 billion for each of its two phases. “SIE has not secured funding for Phase II,” the amended application stated, noting if SIE decides to proceed with the second phase, a separate application would be filed. Ground for the first phase is expected to be broken during the second quarter of 2009, with permitting completed by the fourth quarter of 2008. The first phase is scheduled to be completed by June 2012.
An SIE source told Green Markets that phase I has equity funding, but no debt financing at this point. SIE said transportation fuel is currently being eyed as a product for phase II. SIE also decided earlier this year to purchase electricity rather than generate its own.
Phase I plans call for the plant to produce up to 500 st/d of anhydrous ammonia, up to 1,800 st/d of granular urea, up to 1,600 st/d of UAN, and up to 500 st/d of sulfuric acid.
According to the application, during regular operations the plant would annually emit 67 tons of particulates, down 30 percent from 96 tons in the original application; five tons of compounds that could create ozone, down 92 percent from 63 tons; 32 tons of sulfur oxides, down 55 percent from 72 tons; 203 tons of carbon monoxide, a 6 percent increase from 192 tons; and 127 tons of nitrogen oxides, down 3 percent from 131 tons.
The U.S. Environmental Protection Agency has designated Power County an attainment area for nitrogen oxides, carbon monoxide, particulate matter smaller than 10 micrometers in diameter (PM10), sulfur dioxide, ozone, and lead. The application states the project will not cause or contribute to a violation of national or state ambient air quality standards. SIE is investigating alternatives to venting carbon dioxide, such as piping it to Wyoming for use in oil fields.
Gasification of coal and petroleum coke used as feedstock involves carbon, hydrogen, and water reacting with oxygen in a large, high pressure vessel to form synthesis gas (syngas). The project is designed to gasify between 2,000 and 2,300 st/d of coal and coal/petcoke blends, assuming 100 percent of the coal originates in Utah and Colorado.
Syngas would be used to manufacture 1,900 st/d of ammonia (100-500 st/d for direct sale); up to 2,400 st/d of urea (up to 1,800 st/d for direct sale in granular form); and up to 1,600 st/d of UAN. Sulfur in the syngas would be captured to form sulfuric acid for direct sale. Ash from the coal would be used for vitrified slag for road beds and aggregate for concrete. SIE believes mercury removal efficiency will be greater than 99 percent because there are no direct pathways for it into the environment.
A rail system is designed to accommodate up to 150 100-ton train cars. The feed rate to the gasifier will range from 2,000 to 2,300 st/d, or between 20 and 23 rail cars per day, depending on fuel blend. One silo will be dedicated to coal, another to petcoke. Each silo will have a capacity of about 35,000 tons, giving the project about 30 days of fuel. The coal must be pulverized and combined with water for slurry pumped to the gasifier.
SIE has purchased senior industrial water rights from FMC Corp., allowing it to pump about five million gallons of groundwater per day. FMC used the water to support operations at its Pocatello elemental phosphorus plant, which was shut down in December 2001. It is estimated SIE will need to buy up to 150 megawatts of electricity for the project.
The SIE project would employ 750-1,350 employees during the three years of construction, and 150 when operations begin.
Three similar coal gasification plants are operated in Florida, Kansas, and Tennessee to produce electricity, fertilizer, and chemicals, respectively.