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Project developer ERORA Group will receive $US2.5 million for front-end engineering and design work and another $2.5 million from the public-private Illinois Clean Coal Review Board.
The 777-megawatt integrated gasification combined cycle plant will use 1.8 million tonnes of Illinois coal annually.
Construction of the power plant, set to begin in 2007, will create up to 1000 jobs. The separately developed Central Appalachian Mining mine will create about 200 permanent jobs and roughly 300 construction jobs.
