Nov 11, 2005 12:07 pm US/Mountain
Denver Company Turning Coal Into Natural Gas
NATCHEZ, Miss. (AP) ―
A Colorado-based company wants to build a plant in Adams County, Miss., that will turn coal into natural gas, a process some analysts say represents the future of the coal industry.
Denver-based Rentech Inc. said it would invest between $650 million and $750 million to build a plant at the site of the old Belwood Country Club in Adams County by 2010. The plant would create about 200 jobs, the company said.
Rentech is developing a similar plant in East Dubuque, Ill., where it will convert a nitrogen fertilizer plant into a coal-gasification operation using Illinois coal. The Natchez plant would also use Illinois coal, shipped down the Mississippi River.
Analysts say coal is increasingly attractive as an alternative to oil or natural gas because it is relatively cheap and can be produced domestically.
Richard Sheppard, president of Rentech Inc.'s wholly owned subsidiary Rentech Development Corp., said the Natchez project could progress quickly. Rentech is hoping to receive some federal and state incentives, both tax breaks and financial assistance.
Rentech is not seeking any funding from Adams County, but the next step, Sheppard said, is working toward acquiring property. "We need to negotiate some kind of structure with the county to get control of the site," Sheppard said.
Adams County Supervisor Darryl Grennell said the county has not yet worked out whether it will sell property at the old country club to Rentech or offer a long-term lease.
Work has already begun on the Illinois plan, said Mark Koenig, director of investor relations for Rentech.
Natchez-Adams County Economic Development Authority chairman Woody Allen said the plant could create up to 1,500 construction jobs over four years.
Founded in 1981, Rentech specializes in gas-to-liquids and coal-to-liquids technology development.
(© 2005 The Associated Press. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed.)
Stumble It!
Comments