News Release
Governor and Companies Announce Agreement to Build CTL Facility in Montana
10/2/2006
Sarah Elliott
406-444-9725
selliott@mt.gov
The plant would employ state-of-the-art technology to gasify, rather than ignite the coal. It would convert a portion of the synthetic gas into up to 22,000 barrels per day of diesel fuel, using the rest of the syn-gas to produce "clean" electricity.
"This is a great day for Montana," Schweitzer said. "This type of project can bring thousands of jobs to the region and have a strong overall economic impact on the entire state. In the greater picture, it is a major step in converting into a reality America's hope for an alternative to imported oil." (For more on the economic impacts, see attached release from the Big Sky Economic Authority; also available is a detailed study by Scott Rickard of MSU-Billings' Center for Applied Economic Research, commissioned by BSEDA).
"We have targeted this kind of growth opportunity because it takes advantage of our strength in coal and builds the economy in areas of the state which have suffered economic hard times for decades," said Governor Schweitzer. "Our efforts 'outside the boot' – in rural Montana to support projects like this will sustain generations of families into the future. We look forward to additional project announcements in the future."
The plant could produce up to 300 megawatts of electricity using IGCC (Integrated Gas Combined Cycle) technology, the cleanest and most advanced form of electric power production from coal, and be outfitted with technology to capture carbon dioxide so it can be stored underground, a process promoted by scientists as a way of dealing with global warming emissions from fossil fuel plants. Project plans are to sequester the carbon dioxide in certain Montana oil fields. Furthermore, the gasifier at the facility could remove virtually all mercury, sulfur and particulate matter from the coal.
In 2005, Governor Schweitzer gained national recognition for promoting the concepts of coal gasification and liquefaction, and carbon sequestration, pointing to the strategy as a three point effort to reduce American dependence on foreign oil, address long-term environmental problems, and create a domestic energy economy.
High quality coal will come from the Bull Mountain Mine to produce Fischer Tropsch liquids such as ultra low sulphur diesel. DKRW Advanced Fuels will take the primary role as the developer of the Bull Mountain CTL plant. Houston-based DKRW Advanced Fuels is owned by Arch Coal and DKRW Energy LLC. The company is engaged in developing, managing, and owning projects that utilize coal gasification technology, utilizing coal-to-liquids, methanation, and integrated coal gasification combined cycle (IGCC) technologies.
BMC Announcement (PDF format)
BSEDA News release (PDF format)
BSEDA Economic Impact Study (PDF format)
