$4 billion energy facility planned

Similar plants have been built in South Africa and China.
By D.A. WILKINSON
VINDICATOR SALEM BUREAU
YELLOW CREEK -- The Columbiana County Port Authority is working to create a $4 billion facility to turn coal into liquid fuel.
Tracy Drake, the authority's chief executive officer, said Tuesday that if everything comes together, the plant could be in operation in five years.
The start of operations will depend on the time it takes to get the permits needed to construct and operate the facility, Drake said.
"It would be a real shot in the arm for Columbiana County," Drake said.
The facility itself could ultimately have 200 to 300 permanent jobs. Drake said many of the jobs would be engineering positions with annual salaries in the $50,000 range.
The plant may create about 2,000 jobs during construction, about 1,000 mining jobs, and about 1,000 spinoff jobs.
The authority has signed a memorandum of understanding with Ohio River Clean Fuels, a company created by Baard Energy of Vancouver, Wash. The agreement will guide the authority and company as the project develops.
Private investments
Drake said most of the cost of the plant would be covered by private investors. He estimated that not more than $50 million to $60 million in public funds would go into the project.
Drake said the plant would use technology developed in Germany during the 1920s to create gasoline or diesel fuel. South Africa and China already have similar plants.
The proposed facility could also help the United States limit its dependence on foreign oil, Drake said. The U.S. Department of Defense is especially interested in the technology to ensure an adequate fuel supply for its vehicles and jets.
Similar plans were considered years ago, but the technology at the time did not make the projects cost-effective.
The plant would also help develop a market for Ohio's high-sulfur coal. The plant would consume 7 million tons of coal a year to create 35,000 barrels of fuel per day.
Drake said that the sulfur actually gives the liquid fuel greater power. But he added that the fuel has very low emissions, which is good for the environment.
One issue that hasn't been resolved is that the process of creating the fuel makes carbon monoxide that may increase global warming. Drake said one solution may be to seal the gas in closed mines.
Strong team in place
He noted that he is pleased with the team that is in place and is beginning to make the plan a reality. The authority is working with Civil and Environmental Consultants of Pittsburgh and a surveying firm, Dallis Dawson and Associates of East Liverpool.
The proposed site is on authority property on the west side of state Route 7 in Yellow Creek Township in Columbiana County. The authority's river port that is designed to connect water, rail and road transportation is on the east side of the state route.
The facility may need about 200 acres. The authority is offering 400 acres.
Drake has already spoken to the township trustees and Wellsville officials. He said the site would likely be annexed into Wellsville to take advantage of the village's water system.
The site is on a hill that Drake said will undergo a "very significant process" to enable it to be used for the plant. Work could begin in 2008.
The site could also tap into the fiber-optic line that connects all the school districts in Mahoning and Columbiana counties. The fiber-optic line allows fast transmission of large amounts information.
For more information, visit: www.baardenergy.com.
wilkinson@vindy.com