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Tuesday, February 09 2010
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12/10/2008
Hoppy Kercheval
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Hoppy's Commentary for Wednesday
Talkline Host Hoppy Kercheval
I’ve grown suspicious of announcements of proposed plants in West Virginia that will turn coal into oil or gas.

We’ve heard about the technology for decades, and periodically politicians and industry leaders will declare with much fanfare that one of these refineries is going to be built.

But none has, at least not in West Virginia.

Last July, Consolidation Coal and Houston-based Synthesis Energy Systems announced plans for coal-to-liquid plant near Wheeling.   The $800 million investment would generate 300 to 500 construction jobs and 60 full time jobs.

More importantly, the plant would begin the long process of lessening the country’s dependence on foreign oil.

But then, SES pulled out citing the problems in the credit market.

Consol insists it still wants to build the plant.  Gov. Manchin says he has personal assurances from Consol President and CEO Brett Harvey that his company remains committed to the refinery.

Now, the New York-based company, TransGas Development Systems, has announced plans for an even bigger alternative fuels plant in Mingo County.  TransGas President Adam Victor says his company will invest $3 billion in the facility that will turn coal into oil, generating 6.5 million gallons of gas a year.

Victor says he’ll need 3,000 people to build the plant and another 200 to work there fulltime when it’s finished in 2013.

Victor told me during an interview on Metronews Talkline that after running into environmental and permitting opposition in New York, he was ready to go overseas.  But then a common acquaintance—AIG senior vice president for global finance Robert Percopo--brought Victor and Manchin together.

Manchin tells me that Victor, apparently soured by his experiences in other locations, simply wanted “fairness” in the permitting process.  The governor says promises that, telling him, “If you don’t have a good comfort level, let me know.”

Victor is apparently satisfied enough so far to make the big announcement.  “These…projects are going to happen,” Victor told me, “and hopefully they are going to happen in the United States.”

TransGas made a similar significant announcement in Upstate New York recently.  In June, 2007, TransGas said it would build one of the largest and cleanest coal gasification plants in the world near Oswego.

However, that project has run up against a series of objections from locals and environmentalists who fear pollution from the refinery. 

The plans, promises and arguments are not new.  The potential of alternative fuels from coal has been known since WW II when the Germans ran their tanks and planes oil made from coal.

Sixty five years ago last month, Jennings Randolph, the late U.S. Senator from West Virginia and long-time advocate of alternative fuels, flew from Morgantown to Washington, D.C. in a synthetic fuel powered airplane to try to prove a point.

But neither theatre nor our growing and dangerous dependence on foreign oil has led to a commercial coal-to-liquid plant in West Virginia, the state often called the “Saudi Arabia of Coal.” 

So, you can understand my skepticism. 

Victor told me hopes I’ll join him in Mingo County for the ground breaking which he expects within a year.  I’d like that, and I hope for the sake of his business, our state and the country that he can make it happen.

But if it doesn’t, will anybody be surprised? 

 

 


User Comments
What about the CO2? Let's just ignore that little problem for now.
Gov. Manchin has delivered many new businesses to WV already, including Chesapeake Energy and Hino Motors. He knows that getting a major C2G plant in WV would be a game changer. Based on the Gov's record for getting new business into WV to date, I would not bet against him. He knows how to get deals done.
Your skepticism is well founded. When you have state politicians and a congress that is bought and paid for by the far left the odds of anything being built that would actually work to lessen our dependance on foreign is nearly nonexistant.

You watch, the environmental groups will be out in full force. If you happened to catch who is advising Pres. Elect, Obama, it's none other than Al Gore. Pres. Elect Obama has already stated that human caused climate change is a foregone conclusion supported by science. That is an interesting statement since, I can direct you or anyone else to a petition signed by 31,000 scientists, of which over 9,000 have P.hds, who beg to disagree with Mr. Gore and his group of bought and paided for pseudo-scientists. I guess these 31,000 should be jailed as Dr. Heidi Cullen of the Weather Channel, once suggested, since they dare to call into question the conclusions of the environment movement.

The really sad part is, in the end, political expedience, pseudo-science, power mongering, fear mongering, and ignorance will rule day. The actions we should be taking will be left untaken and we'll continue down a road that is ultimately going to spell economic doom for this nation and its people.

We'll do all of this for the sake of political expedience and power. I guess people would rather go along, complete with the hyper inflation and depandence on nations who hate use, instead of holding their elected officals accountible.

Hoppy, if this company follows through with this project, it could be a very wise and profitable investment. Sure, oil prices are down NOW, but we all know they won't remain that way for long. When OPEC and the big oil companies regain control of the situation, we'll be back to the days of $4 a gallon gasoline. THAT'S when this new plant and the technology behind it will become valuable. With the Obama Administration poised to become the most anti-coal Federal government of all time, converting coal to gas will keep WV miners working and our economy going. The big IF here will be whether or not the project will go forward in light of lower world oil prices. In a gloomy economy, will it be worth it to this firm to build this plant? I think we all better just "wait and see" before we throw a celebration party on this one.

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