On February 10, 2009, the Idaho Department of Environmental Quality issued the final air permit for the Power County Advanced Energy Center to Southeast Idaho Energy LLC (SEI). SEI is a wholly owned subsidiary of Refined Energy Holdings LLC. SEI first submitted an application for a permit in July 2007 and then submitted a revised air permit application in 2008. The Idaho Department of Environmental Quality issued the permit after a complete and thorough evaluation.

The Power County Advanced Energy Center will produce nitrogen based fertilizer to be used by the local agricultural economy. The feedstock is coal and petroleum coke that will be converted to syngas using GE gasification technology. The syngas will be converted to nitrogen based fertilizer. According to an April 2008 letter to the Idaho DEQ, the project will produce up to 500 tpd of anhydrous ammonia, up to 1,800 tpd of granular urea, and up to 1,600 tpd of ammonia nitrate. All of these products are used in the agricultural industry.

The plant site is located on 450 acres near American Falls, Idaho. The site is zoned heavy industrial and is next to the Lamb Weston Potato Processing Plant. Construction is estimated to be complete by 2012.

Southeast Idaho Energy, LLC re-issued it’s air permit for the Power County, Idaho coal gasification project. There were major revisions to the project and therefore the permit had to be re-submitted. The capacity was revised from 3,000 to 4,000 tpd coal and petcoke to 2,000 to 3,000 tpd coal and petcoke. It was revised to include two GE gasifiers (one operating and one spare) instead of one large ConocoPhillips gasifier. It was revised to produce end products of ammonia, urea, and urea ammonium nitrate (UAN) and the production of Fischer-Tropsch diesel fuel was eliminated.

The plant is projected to produce 2.3 million tons per year of CO2. The project plans to capture most of the CO2 that it produces and partner with a CO2 pipeline carrier to distribute the CO2 to Wyoming for enhanced oil recovery (EOH). This scope of work is outside of the coal to liquids project due to different contracting issues and risk profile.

The project schedule is described as:

Submit revised air permit application    April 2008

Groundbreakingearly    2009

Phase 1 construction    2009 to 2011

PHase 1 start-up    2011 to 2012

The plant will spend approximately $50 million to install a cover over the coal handling system. This will reduce the particulates to well under the air quality guidelines. The company is voluntarily including a cover over the coal handling operations, because it is aware of certain past particulate issues.

Water consumption will be optimized. The plant design will be based on zero discharge water design to maximize recycle and minimize waste and discharges.

The project is being developed by Refined Energy Holdings LLC a subsidiary of Green Rock Energy. The proposed site for the project is located on 450 acres southwest of American Falls, Idaho. The Idaho Department of Environmental Quality (IDEQ) is reviewing the air permit application.