Mt. Vernon Register-News

Local

February 25, 2008

Synthetic natural gas plant to become a regional enterprise

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By TESA CULLI

tesa.culli@register-news.com

WALTONVILLE — The local Power Holdings synthetic natural gas plant which is to be built in southwestern Jefferson County has now become a regional enterprise.

“We have been periodically holding planning meetings with this project, which is now a regional project which includes Jefferson, Washington and possibly Perry County,” Jefferson County Development Corporation Executive Director Mary Ellen Bechtel said. “It’s grown a little, and expanding to affect a wider area.”

Power Holdings first announced it had chosen the Waltonville area of Jefferson County as its choice for construction of a $1 billion synthetic natural gas plant. The gas would be created using an “environmentally friendly” specialized technology designed to use Illinois coal. At the time of the announcement, the company stated the area was chosen due to its proximity to water, coal reserves and transportation systems and one of the main natural gas pipelines for the state.

During construction, the project is expected to create 1,000 construction jobs for three years, and when open, 150 full-time jobs in addition to at least 300 coal mine jobs. The facility is expected to convert 4 million tons of coal into 50 billion cubic feet of pipeline-quality natural gas. In 2006, Ameren, Nicor and Oneok Energy Services announced they had entered into contracts with the company to purchase all energy it can produce.

The Illinois Environmental Protection Agency has granted the company an air permit, and construction permits are outstanding.

According to previous information from Power Holdings CEO Bob Gilpin, the company has been steadily moving forward with the project, although it is still in negotiations to determine who will provide coal to the plant.

A specific site for the main plant has not been announced at this time, although Bechtel said Power Holdings will keep the main site in western Jefferson County. Negotiations have been ongoing in Washington and Perry counties companies as a resource for coal to supply the plant.

A representative from Power Holdings is expected to speak to members of the Jefferson County Board tonight regarding roads in Casner Township. Bechtel said representatives from the company have been speaking with road commissioners and township representatives in the county regarding infrastructure needs.

“They’re in the process of doing all the preconstruction planning,” Bechtel said. “Transportation planning is required for a project this size. ... Some roads need improved, but they are working very hard to reduce the impact of this project on the infrastructure in Jefferson County as much as possible.”

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