The state’s coal industry received what could be a potential boost this week when state coffers were increased to make available US$800 million for companies that plan to build coal-fired power plants in the state or convert existing ones to use Illinois coal.

Associated Press (AP) reported the Illinois governor signed legislation that added US$300 million to the US$500 million already available for state-backed bonds or grants.

It is hoped the incentives will lure coal and power companies to the state, which has suffered a down turn in coal mining activity since 2001.

Illinois Coal Association chairman Steve Carter told AP it would take a lot more than economic incentives to revitalize the state’s coal industry. However, he said the incentives were a good first step.

Carter told AP only a comprehensive national policy specifying acceptable emissions levels for a number of coal toxins will help convince new companies to build and existing ones to expand.