Kentucky passes bill paving way for IGCC to be built

Kentucky passes bill paving way for IGCC to be built

Washington (Platts)--20Mar2006

By a vote of 98-0, the Kentucky House of Representatives on Friday passed and
sent to Governor Ernie Fletcher a bill that boosts the prospects for a coal
gasification project to be located in the state.

S.B. 131 breezed through the legislature. It was approved 37-0 by the Senate
on February 16.

"It's exciting ... we're paving the way for a gasification plant in the
western Kentucky area," the bill's co-sponsor, Senator Jerry Rhoads, told
Platts. Rhoads said he's confident the governor will sign the measure.
Fletcher, who recently was released from a hospital after undergoing treatment
for a blood clot, could not be reached for comment.

An unidentified investor group has been scouting Kentucky for a possible
gasification plant. "The investor group will take a look at Muhlenberg
County," Rhoads said, noting that's where Peabody Energy is proposing to
construct its 1,500-MW coal-fired Thoroughbred Energy minemouth project.

Announced more than five years ago, the $2 billion Thoroughbred project has
experienced numerous delays, mainly due to formal protests and lawsuits from
environmentalists. LuJuana Wilcher, secretary of the Kentucky Natural
Resources and Public Protection Cabinet, is reviewing an administrative appeal
of an air permit issued about two years ago. She is expected to render a
decision soon.

S.B. 131 clears up uncertainty over whether natural gas distribution companies
legally can sign long-term agreements to purchase synthetic gas produced by a
gasification plant. Gasification plants typically need syngas supply contracts
of at least 20 to 30 years "to make them financially viable," Rhodes said.

For more information, take a trial to Platts Coal Trader at
http://www.coaltrader.platts.com .

Please visit: www.platts.com

Their coverage of energy matters is extensive!!.