Idaho fertilizer-diesel gasification plant in works

American Falls, Idaho-Southeast Idaho Energy LLC (SIE) has scrapped plans to take over the old FMC phosphate site in the Pocatello area for a gasification generation plant and is now pushing ahead with a $2 billion concept that would produce ammonia for fertilizer and other uses and ultra-low-sulfur diesel. SIE has selected a site on 450 acres of farmland southwest of here and applied for permits from the Idaho Dept. of Environmental Quality for what it is calling the Power County Advanced Energy Center. SIE spokesman John Burk confirmed that the center would be built over the next six years and that developers hope to begin construction late next year, with completion of Phase 1 expected in 2011. In Phase I, costing an estimated $1 billion, the first of three ConocoPhillips gasifiers would be installed to turn coal into more than 4,000 tons of fertilizer and 1,400 barrels of diesel per day. Phase 2, costing another $1 billion, would involve adding two more gasifiers to boost diesel output to 8,400 barrels. Burk told the local press earlier that SIE’s proposal two years ago to build on the former FMC site, also in Power County, ultimately died because Idaho Power wasn’t interested in purchasing the electricity. Questions were also raised about the effects on air quality and the energy company’s experience and financial ability to handle such a large undertaking. In the process of advancing the power plant, Burk noted, his company became aware of the increasing national need for synfuels and domestically produced fertilizer. He said ConocoPhillips has a lot of experience in coal gasification with its Wabash facility. Burk added that SIE, which has already generated $450 million toward the Idaho gasification project from investment organizations, expects funding to be available from large U.S. and foreign banks. Transporting 3,000 to 4,000 tons of coal from Wyoming Powder River Basin and western Utah bituminous mines and petroleum coke from refineries to be blended into the two-stage gasifier shouldn’t be a problem since Union Pacific haul trains pass through the American Falls site every day. He also emphasized that SIE won’t be dependent on any government funding. Idaho DEQ actually began processing SIE’s application last July and is expected to finalize a completeness determination in January and issue a draft permit for the first phase and a statement of basis for a 30-day public comment period in March. DEQ will hold public information meetings at times and locations still to be determined.