|
1 May 2006 -- Caterpillar Inc. and Secure Energy, L.L.C. signed a non-binding letter of intent (LOI) Friday, which could lead to the development of a coal gasification plant that would turn Illinois coal into synthetic natural gas (syngas).
Under terms of the LOI, Secure Energy has the right to purchase property and equipment located at Caterpillar's manufacturing facility in Decatur, Illinois, USA. The equipment includes a coal-powered boiler constructed on the Caterpillar grounds in 1980 that was never put into operation. Secure Energy plans to utilize the boiler building and several pieces of existing equipment at the Caterpillar site as part of a new coal-to-syngas plant. The plant would produce synthetic natural gas for the Decatur area. This plan would not impact Caterpillar's manufacturing facility at Decatur.
"Today marks an important step in a long process, and Caterpillar is pleased to find what we hope will be a positive and sustainable use for the coal boiler facility, which has sat idle for more than 20 years," said Doug McCallen, senior business resource manager for Caterpillar's Decatur facility.
Secure Energy plans to develop a coal-to-syngas facility at the site that could eventually consume up to 600,000 tons of coal annually.
"This technology can provide a stable domestic supply of natural gas using the abundant supply of high-sulfur Illinois coal in an extremely low-emissions process," said Lars Scott, co-managing member of Secure Energy.
In past decades, coal was primarily used as an energy source for the Decatur region, but because of emissions concerns and the cost of natural gas, many facilities switched to natural gas as a power source. This includes Caterpillar's Decatur facility, which switched to natural gas in the early 1980s. Now with supply concerns for natural gas, coal gasification technology is seen as a potential new, and sustainable use for Illinois coal.
| 
Articles 
| View all PennWell sites | View all PennWell events
Add RSS Feed
