TransGas Development Systems announced that it has filed an application for a permit with the West Virginia Department of Environmental Protection, Division of Air Quality, to construct a coal-to-liquids gasification plant in Mingo County, West Virginia. The Transgas coal-to-liquids project will produce gasoline.

The site is near Wharncliffe, WV in Mingo County about 80 miles south of Charlston, West Virginia. The facility is planned to convert 3 million tons of coal per year to syngas using the Uhde proprietary Prenflo gasification process using 2 – 1000 MWth gasifiers with direct quench. The facility will convert the syngas using a catalytic process to produce 6.5 million barrels per year of gasoline.

Financing has been difficult for most project developers/owners to arrange. Most developers/owners plan to finance their projects with debt. Transgas plans to issue an IPO and finance the project with investor equity from the sale of the stock.

This facility will provide high paying jobs and produce fewer emissions than traditional coal plants and improve the local economy.

Consol Energy has announced its plans to build a coal gasification plant in West Virginia. Consol Energy is developing the plant through a joint venture with Synthesis Energy Systems. Synthesis Energy Systems LLC has a proprietary coal gasification technology, U-Gas(R), that will be used for the coal gasification process. The two companies have formed North Appalachia Fuel LLC to develop the project.

The companies have selected Benwood, WV near Wheeling as the site for the coal gasification plant. The plant will be at the Consul’s Shoemaker Mine and will be a ‘minemouth’ plant. The plant will convert coal to synthetic gas (syngas). The companies plan to convert the syngas to approximately 720,000 metric tons per year of methanol to be used as feedstock for chemicals. The methanol can be used to produce 100 million gallons of gasoline per year and the companies are negotiating with ExxonMobil to license their proprietary methanol-to-gasoline (MTG) technology to convert methanol to gasoline.

The companies have entered an agreement with Aker Solutions US Inc. to provide the Front-End Engineering and Design (FEED). As part of the FEED scope of work, Aker will evaluate carbon sequestration in deep saline aquifers. Sequestration of CO2 in saline aquifers is considered to be the optimum carbon solution for coal gasification plants.

The project will be provide jobs and boost the economy in West Virginia. The University of West Virginia has a supporting role with planning and analyzing the impact to the economy. The State of West Virginia is expected to approve special financing and tax incentives for the plant.