Plans for Coal-to-Fuel Plant Still Uncertain

The North American Coal Corp. announced last week that the coal-to-fuel project planned for western North Dakota has been put on hold until the energy policies of the Obama adminisration are more clearly defined. The plant, estimated to cost $4 billion, would be the first of its kind in the nation, according to company officials.

North American Coal, based in Dallas, partnered with Headwaters Inc. of South Jordan, Utah, and Great River Energy, of Elk River, Minn., to form American Lignite Energy LLC to oversee the project. The plant would produce 460 million gallons of gasoline a year. It would also generate electricity to power the plant and to sell to markets in Minnesota and Wisconsin.

The North Dakota Industrial Commission has committed up to $10 million to study the project's potential, of which $1.7 has been used to date.

The AP story is available here.