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COPYRIGHT 2008 Hart Energy Publishing, LP.
Indiana IGCC Project Promises Big Savings
A pioneer developer of public-private financing policy for integrated gasification combined cycle (IGCC ) projects is negotiating with Indiana utilities, state regulators and the state's consumer council the terms of proposed 30-year supply contracts for an IGCC plant called Indiana Gasification (see GN 11/14/06) .
The project proponent, former U.S. EPA assistant administrator William Rosenberg, aims to win a "no look-back" contract, meaning that no renegotiation on terms would occur if the deal didn't work out for one of the parties.
The plant would use three million tons of coal per year to produce 40 billion cubic feet of syngas.
Rosenberg, who wrote a widely read treatise on innovative IGCC financing policy while at Harvard University's prestigious Kennedy School of Government, told Gasification News that he has obtained an option on an Ohio River site at Rockport, Ind., where coal can be delivered by truck, rail or barge.
The contract negotiations are scheduled to be completed this summer, he explained. If so, then construction can begin by the end of 2009.
The contracts would include a base price plus a coal price adjuster and operating costs, which utilities can put in their rate base.
Indiana Gasification would use coal prices to hedge against gas prices, but won't announce the base coal price until the supply contracts...
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