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Montana Coal-to-Liquids Plant to be Built by Crow Nation and Australian-American Energy Company Montana Governor Brian Schweitzer, along with the Crow Tribe of Indians and Australian-American Energy Company LLC have announced an agreement to develop a $7 billion coal-to-liquids project on the Crow Reservation in southeastern Montana.
The Many Stars Project is initially targeted to convert 38,000 tons per day of coal into 50,000 barrels per day of ultra-clean diesel, jet fuel and naphtha. The project would provide up to 4,000 jobs during construction and 900 permanent jobs on the reservation after start-up, which is projected for 2016.
Gov. Schweitzer, a long-time advocate of coal-to-liquids technology, has worked closely with both the Crow Nation and AAEC to make this project a reality. Said Schweitzer, “This will be one of the first clean-coal technology projects in the state and meets one of my goals of bringing new economic development to Montana,” adding that the project could potentially supply military fuels to nearby bases.
Crow Chairman Carl Venne praised the project for its “long-term economic and social benefits” to the tribe. As part of the agreement, AAEC will assist Little Big Horn College in the creation of educational programs to meet the project’s human resource needs.
Under terms of the agreement, the Crow Nation has committed coal and water resources for the project while AAEC will provide the development capital and project management. Both the Crow Nation, through its company Apsáalooke Energy Company LLC, and AAEC will participate in the board of directors of the project company.
The project design calls for CO2 to be captured for geo-sequestration and supply to enhanced oil-recovery projects in the region.
AAEC has already completed its initial feasibility study for the coal-to-liquid fuels project and will begin the environmental permitting process later this year. Construction is expected to begin in 2012. Gov. Schweitzer said he hopes the project will serve as a model for other U.S. clean-coal projects, noting that its 100 billion tons of coal resources made Montana “the Saudi Arabia of coal.” Return to September 2008 Western Energy News To sponsor Western Energy News , please contact WEI at 503 231-1994.
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