Energy company asks about support for plant

Published 12:00 am Friday, October 28, 2005

Gauging the mood of the community.

The president of the Boston, Mass.,-based CME North American Merchant Energy, Bill Martin,

paid a visit to the Lawrence County Commission Thursday, asking if there was local support for a new coal gasification project that is being discussed for what once was known as the Calpine site in Hamilton Township. The answer from commissioners was an emphatic &#8220yes”. They rolled out the welcome mat in the form of a resolution of support for the project.

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Martin told the commission that while the plans for the facility are in the exploratory stages, he wants to make certain local officials are on board before going further with those plans.

&#8220I'm here today to measure and seek your support and to summarize our ambitions,” he said.

The ambition is to build a plant that would take coal- which is abundant in Appalachia- and burn it almost to the point of combustion, creating what is known as syngas. With the federal government calling on industry to find newer sources of energy to reduce America's dependence of foreign oil, coal gasification could be a key to the country's - and the regions- economic future.

&#8220The U.S. is looking to diversify its (energy) sources and this is part of that story,” Martin said. &#8220Any area rich in coal could see a revitalization.”

Although coal in Appalachia has a high sulfur content, the technology is available to remove the sulfur and to make the entire process cleaner and more environmentally friendly, something commissioners questioned.

One of the first hurdles the proposal would face would get obtaining the necessary environmental permits.

If and when the necessary hurdles are cleared though, the end result would be an infusion jobs and money into the local economy.

&#8220This is not a sure thing,” Martin stressed. &#8220It will be a really tremendous challenge with a magnitude of 3 or four times what was originally planned (for the site).”

He means a $1.4 billion dollar investment, as opposed to the $510 million that would have been invested in the Calpine merchant power plant. CME was also a partner in the effort to bring the Calpine, Inc. proposal to fruition.

That idea was stymied last winter when the price of natural gas skyrocketed.

&#8220This is fantastic,” Lawrence County Commissioner Jason Stephens said. &#8220If this can go through it will put Lawrence County smack in the middle of the energy business.”

Lawrence County Commissioner George Patterson asked about job creation: Would CME and its partners use local union labor? What would the construction and permanent jobs pay? Could local educational institutions be used for job training?

&#8220I guarantee this commission is friendly to something that would create jobs,” Patterson said.

Although he had no hard, fast figures, Martin estimated that such a plant would take three years and could create as many as 2,000 jobs during the peak of construction.

Once the plant is operational, he estimated as many as 200 people could be needed permanently. He said using local labor is a priority with CME.

A final decision is likely to come next year.