A joint venture of ConocoPhillips and coal producer Peabody Energy has received a key environmental permit that gets it closer to turning coal into natural gas.
The Kentucky NewGas Energy Center takes coal and turns it into a synthetic gas very much like natural gas. Heated generated from the project is turned into steam, which is then used to generate about 250 megawatts of electricity.
“The mine-mouth project would have very low emissions and would be capable of producing 60 to 70 billion cubic feet of pipeline quality natural gas each year, enough energy for nearly three-quarters of a million Midwest homes. The project also would create economic benefits by creating an estimated 1,200 skilled jobs during a four-year construction process, 500 long-term jobs and providing nearly $100 million in direct economic benefits each year.”
ConocoPhillips is the sixth largest producer of natural gas in the U.S. but many don’t realize the Houston-based major is also one of the technology leaders for gasification technology.
Here’s a video explaining the project: