Agrium Inc. said Aug. 31 that the Kenai Blue Sky Coal Gasification Project is proceeding to complete a detailed feasibility review. The project’s goal is to develop a world-class, low-emission coal gasification facility that would create a long-term off-take opportunity for Agrium’s Kenai, Alaska, nitrogen complex. It would also generate competitively priced electricity for the regional power grid, as well as excess carbon dioxide that could be used to enhance oil recovery.
Agrium says a preliminary review of the Blue Sky has been completed, and that the detailed feasibility review will include further development of industry partnerships, more detailed definition of the design, and commencement of environmental permitting. Agrium has been awarded a $2 million grant from the Denali Commission and a $5 million grant from the State of Alaska for this phase of the project. The Denali Commission is a federal and state partnership designed to provide critical utilities and infrastructure throughout Alaska, particularly to distressed communities.
“We appreciated the ongoing support of the Denali Commission and the State of Alaska as we commence this next phase of the Kenai Blue Sky Project,” said Agrium President and CEO Mike Wilson.
Agrium says one objective is to develop interest from a group of industry partners to site the coal gas facility. The facility could be operational by 2011 and is based on proven technology.
Agrium has also noted increasing gas exploration in Alaska as a means to keep the Kenai nitrogen plant going until the coal gas option is online (GM Aug. 28, p. 1). As reported last week, Agrium has obtained enough gas to keep its Kenai facility in partial operation in 2007, minus some expected downtime in the winter months.
Agrium announced July 19 the pursuit of a gasification project to serve its Redwater, Alberta, nitrogen plants (GM July 24, p. 1).