May 13, 2009

Loan Will Assist Ohio River Clean Fuels

An Ohio state lawmaker panel signed off on a $4.5 million forgivable loan to assist the Columbiana County Port Authority in its efforts to develop a CTL plant in Wellsville, OH. The funds will be used by the authority to purchase and prepare a 525-acre site for Baard Energy's 53,000-b/d Ohio River Clean Fuels Plant.

Baard plans to build the $6 billion facility near the Ohio River and has spent about $6.5 million on predevelopment activities at the site. This work includes securing purchase options on the 525 acres of land adjacent to Wellsville, obtaining an option for long-term coal supply, completing engineering and cost estimates and securing permits. Although the project is structured for flexibility on the timing of required capital expenditures, exercising the land options now is critical to the project moving forward.

Construction is set to begin next year, will take about 24 months to complete and will require 135 construction workers. Commercial production of fuel is scheduled to start in 2013. Once completed, the facility will employ 450 permanent workers with average annual salaries of $70,000, according to documents.

The state loan approved by the controlling board will be forgiven if the project is completed within the two-year period and the 135 construction jobs are created, according to documents. The Ohio Development Financing Advisory Council signed off on the financing in late January.