Southeast Idaho Energy (SIE), a unit of Refined Energy Holdings of New York, still hopes to break ground by the end of 2009 on its $1.0 billion coal gasification-based fertilizer plant near American Falls, despite the global economic financial crisis and an extended comment period that pushed back the project by five months, according to John Burk, company spokesman. SIE was recently issued an air quality permit by the Idaho Department of Environment (GM Feb. 16, p. 13) for the plant.
Some engineering work on the project remains to be done before the company will go to lending institutions to secure financing, which Burk conceded will be more difficult than a few years ago. Still, he said, SIE is confident it will be obtained because of the project’s viability. “The best I can tell you right now is we have a good project from a financial standpoint. We’re optimistic,” Burk said, adding that getting the IDEQ permit to construct is an important, encouraging step in the project’s development. Burk called the project an economic stimulus that will inject up to $500 million into Idaho’s economy, contributing to local and state tax bases and enhancing creation of additional jobs, which is needed as the nation faces difficult economic times.
Long-time fertilizer industry sources, however, have seen many fertilizer plant proposals come and go. Their mantra is financing is key and they will believe it when they see it, especially in today’s economic climate.
The project will produce up to 500 st/d of anhydrous ammonia, up to 1,800 st/d of granular urea, and up to 1,600 st/d of a urea ammonium nitrate solution. SIE has decided against producing diesel fuel or generating electricity at the site as originally planned.
SIE estimates it would need to import about 2,000 tons of coal daily, mostly from Colorado, for the plant, which would use advanced technology to keep emissions reduced. Opponents, however, say the plant would discharge 2.3 million tons of carbon dioxide annually, contributing to global warming.
“We have demonstrated our commitment to keeping emissions low and meeting these requirements by voluntarily planning to enclose coal handling operations and through the use of various advanced technologies,” Burk said.
Burk said his company expects to meet CO2 regulations when they become applicable to the plant, but there currently are no federal or state laws or regulations regarding carbon dioxide. “We have made it clear that we are committed to sequestering CO2 by transporting it by pipeline to western oil fields for enhanced oil recovery. We keep our commitments. At this point, CO2 is unregulated. It seems likely that Congress will deal with CO2, and we will meet whatever requirements are established.”