Agrium's Kenai Coal Gasification Project Proceeds to Feasibility Stage
Agrium Inc. announced that the Kenai Blue Sky Coal gasification Project is proceeding to complete a detailed feasibility review. The Project is to develop a world-class, low-emission coal gasification facility that would create a long-term off-take gas opportunity for Agrium's Kenai nitrogen facility and that would generate competitively priced electricity for the regional power grid. It would also provide excess carbon dioxide that could be used for enhanced oil recovery.
A preliminary review of the Project has been completed and the detailed feasibility review will include further development of industry partnerships, more detailed definition of the design, and commencement of environmental permitting. Agrium has been awarded a $2-million grant from the Denali Commission and a $5-million grant from the State of Alaska for this phase of the Project.
An objective is to develop interest from a group of industry partners to site the coal gasification facility. The facility could be operational by 2011y.
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