W.Va. jumps on liquefaction bandwagon with coal-conversion

Washington (Platts)--14Oct2005

West Virginia Gov. Joe Manchin said Thursday that he has "laid out a
comprehensive plan" for coal-conversion technology programs in the state.

"The West Virginia Coal Conversion Initiative is a comprehensive plan that
will encompass public/private development of liquefaction and other coal
conversion facilities and infrastructure in West Virginia," Manchin said.
"These facilities will convert coal into liquid fuels and other products for
commercial and non-commercial uses."

He said at a press conference that the state initiative "will focus on the
development of state-of-the-art, multi-product facilities that would adapt to
the changing needs of the marketplace and produce whatever product is most
needed at a specific time ? be it natural gas, diesel fuel, jet fuel, hydrogen
or chemicals."

Manchin's action follows those of Montana Gov. Brian Schweitzer, who has been
encouraging the development of his state's coal-derived synthetic fuels to
replace gasoline, diesel and even jet fuel (PCT 10/13).

In West Virginia, Manchin has re-established the West Virginia Public Energy
Authority, "in a collaborative effort with researchers, scientists and energy
leaders, to create the overall plan for the implementation of this type of
coal conversion facility."

He also said he is directing the West Virginia Development Office to assist
with identification of potential site locations, infrastructure requirements
and private-sector partners and to assist with siting, permitting and
construction of such projects. The state Dept. of Environmental Protection,
meanwhile, is charged with working with the Public Energy Authority and
potential investors to facilitate a plan for permitting and construction.

Also, the governor is requesting that the West Virginia Public Service
Commission "facilitate certification of any necessary utility infrastructure
and to work with the Federal Energy Regulatory Commission and transmission
operators to facilitate interconnection to the energy grid."

Program will create jobs 

He also said that "West Virginia's colleges, universities and technical
schools will play an integral role in fulfilling a significant educational
component of this plan, training workers for mining, transportation,
construction and operations jobs that will be created with coal conversion
projects across the state."

Manchin said he is also enlisting "the leadership of the West Virginia Coal
Assn., United Mine Workers of America and our entire skilled labor force" to
help with the plan.

"With an estimated 50 billion tons of coal reserves in West Virginia that
could make up to 3 barrels of liquid fuel/ton, it just makes common sense for
our state to take the lead in advancing our efforts to the next level,"
Manchin said.

The state hasn't made any funding commitments yet to this effort, Manchin
spokeswoman Lara Ramsburg told Platts Coal Trader Thursday. "Right now, we're
asking [state agencies] to put it at the top of their priorities list; we're
asking them to make [the plan] a priority [with existing funding]. We have
some money in our economic development account; however, we believe that
before that is needed to be used, we will work with private development and
the federal sector. "

As far as measurable goals, Ramsburg said, "We haven't set a specific
timeline, but [Manchin] has made it clear he wants to make this happen as
quickly as possible" and the governor anticipates a lot of interest from the
private sector "because of the commitment of his entire administration to this
effort."

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