Gas From Coal? Union County May Get $3 Billion Plant
By: Andy Schroeder
Updated: June 28, 2007
The Peabody Energy Company has its sights on Union County, Kentucky for a coal gasification plant. The company says abundant coal reserves there make it a prime location for one of two plants it wants to build in the coming years.
Coal gasification is a chemical process that turns coal into liquid or natural gas.
"These are large scale projects," said Beth Sutton of Peabody Energy, "they cost multiple billion dollars... and employ several hundred over 30 years or more."
A plant would be built on the site of an active mine, and could produce 10 to 30 thousand barrels of liquid or natural gas a day.
Peabody is also looking at sights in Indiana and Illinois, but Kentucky lawmakers are hoping to leverage several million dollars in incentives to lure the plant to Union County.
A state funded feasibility study is in the works right now.
Union County Judge Executive Jody Jenkins said the study is like holding a lottery ticket, knowing you have a good chance of winning.
