Coal power plant closer to reality

It appears that only a federal grant — and perhaps a decision on the actual site — stands in the way of Ector County getting a coal gasification plant built by a private company, thus erasing the disappointment after being passed over for the government’s FutureGen project.

In fact, it could be a case of the local folks getting the last laugh. When the proposed FutureGen site near Penwell lost out to an Illinois bid, a lot of hard work seemed to have gone out the window.

But backing for FutureGen, a proposed clean-coal facility, eroded in federal government circles and the project has been in limbo since.

Then along comes Summit Power Group Inc., a Bainbridge Island, Wash., company that wants to build a 400-megawatt coal gasification power plant. Negotiations have proceeded to a point where Summit will come to one of two Ector County locations if the government grant comes through. “That would be what we would need to go forward,” said Laura Miller, Texas projects manager for Summit.

The company is seeking a grant with the U.S. Department of Energy’s Clean Coal Power Initiative, which is funded by the American Recovery and Reinvestment Act. It would pay for around 20 percent of the project’s estimated $1.75 billion cost.

Miller said the grant request is the second attempt to land federal money for the project. Summit initially sought funding from the Federal Loan Guarantee Program to lend it up to 80 percent of the project’s cost, but the company was told there was no more money available in that program.

But there still is some discussion as to where the plant would be built if the grant is received.

One site is the land near Penwell. And Summit seems to prefer that land because a lot of environment impact study was done there when FutureGen still was on the table.

But Odessa officials are asking that Summit consider land near the former site of Flint Hills Resources Odessa chemical plant. They cite the advantages of having better rail and electrical infrastructure and easier access to water.

But quite honestly, it is the business of Odessa economic development officials to favor one site over another?

Gary Vest, economic development director for the Odessa Chamber of Commerce, said his department no longer holds the option on the Penwell site. But it seems as if Summit could work directly with the owner of that property to see if a deal could be worked out.

The important aspect is luring the plant to this area. Where it actually lands in Ector County should be a secondary concern.