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Mingo County Redevelopment Authority project developer Randall Harris told regional business news outlet The State Journal he met with TransGas Development Systems president Adam Victor last week for an update as part of a town hall-style meeting.
“He said that it was moving from the development phase into the financing phase and that everything was on track for closing by the end of this year, with major construction ramping up the first quarter of 2013," he said.
The project has been in process for some time.
TransGas initially announced the plant, which will convert coal to synthetic gas, in 2008 and site work began last year.
Located in Adams Fork, the plant is projected to convert 7500 tons of local coal daily into about 18,000 barrels of gasoline and 300 barrels of liquefied petroleum gas.
While initially carrying a $US3 billion price tag, later estimations said the cost would be $4 billion, the paper said.
As it was a private investment, TransGas sought financing for the purchase of components.
Harris said late last year Victor confirmed the financing might be closed during the current quarter.
“I think he had hoped to be able to make an announcement this week but it looks like it's probably a week or two off," Harris told the Journal.
The West Virginia Department of Environmental Protection's move to issue TransGas’ environmental permit was in Circuit Court on appeal, the paper added.
According to the company, the plant’s cost to produce the gasoline would be less than $2 per gallon.
Harris said in the long run TransGas felt the stability of coal prices was greater than that of the natural gas which was so inexpensive in comparison.
In December, Victor told the Journal from an emissions standpoint, while coal-based liquid transportation fuels were thought to be higher than petroleum-based, the facility’s process would help capture carbon dioxide more cost-efficiently.
He reportedly said veterans would be given priority for jobs and the company would focus on hiring local workers.
The plant’s construction was projected to employ 5000 union workers and should take about two years to complete.
