DUSTIN BLEIZEFFER Star-Tribune energy reporter | Posted: Saturday, January 26, 2008 12:00 am
International coal giant Peabody Energy announced a joint partnership Friday for plans to construct more than one coal-to-natural gas facility in Wyoming's Powder River Basin.
The move comes just two months after PacifiCorp announced it would indefinitely put on hold an integrated gasification combined cycle (IGCC) and carbon sequestration project at its Jim Bridger power plant in southwest Wyoming.
The effort is a partnership of Peabody and venture capital firm GasPoint Energy. Although the project does not include an electrical generation component, it will likely include carbon capture and sequestration.
That could go a long way in relieving some frustration among Wyoming officials who have long wanted to locate "value-added" coal technologies in the state.
"Given the high cost of natural gas and the nation's increasing reliance on foreign (liquid natural gas) imports, we see great potential for coal to gas developments to create energy security and ease prices," Peabody spokesman Derrell Carter told the Star-Tribune. "We see this investment as an opportunity to advance clean coal technologies that turn coal into gas, which ultimately helps builds energy security."
Last year, Wyoming exported a record 451.3 million tons, representing about 38 percent of the nation's coal supply, according to the Energy Information Administration. More than 90 percent of that coal is used to fuel electrical generation.
PacifiCorp and the Wyoming Infrastructure Authority issued a joint press release Friday saying the market and policy conditions currently do not exist to establish even a demonstration-sized IGCC plant in Wyoming.
But that doesn't necessarily exclude the "value-added" process of gasifying the coal and shipping the product to distant natural gas markets. As one of the largest producers of domestic natural gas, Wyoming is actively pushing for more pipeline infrastructure to outside markets.
GreatPoint Energy is commercializing its proprietary bluegas technology, which converts coal, petroleum coke and biomass into a gas that is 99.5 percent pure methane, according to the company. The "ultra-clean" product easily meets pipeline quality requirements, and the gasification process provides an opportunity for carbon capture and storage.
Peabody spokesman Carter said so far there no details available about exactly where the gasification facilities might be located.
Peabody owns and operates three coal mines in the basin - North Antelope Rochelle in southern Campbell County, the Caballo mine south of Gillette and the Rawhide mine just north of Gillette.
In 2007, the mines produced an estimated 89.1 million tons, 30 million tons and 16 million tons respectively, according to the Energy Information Administration. Combined, the mines employed 1,581 workers, according to the Mine Safety and Health Administration.
Energy reporter Dustin Bleizeffer can be reached at (307) 577-6069 or dustin.bleizeffer@trib.com.
On the Web:
GreatPoint Energy, www.GreatPointEnergy.com
Peabody Energy, www.peabodyenergy.com