DKRW and SNC-Lavalin in Alliance for Coal-to-Liquids Projects
16 August 2006
DKRW Advanced Fuels LLC (DKRW), headquartered in Houston, Texas and SNC-Lavalin GDS, Inc. of Houston and SNC-Lavalin Constructors Inc. of Bothell, Washington, wholly-owned subsidiaries of SNC-Lavalin (TSX: SNC), have formed an alliance to develop, design and construct a number of coal-to-liquid fuel projects each valued in excess of $1 billion.
Medicine Bow Fuel & Power LLC (MBF&P), a wholly-owned subsidiary of DKRW Advanced Fuels LLC (DKRW), has awarded a contract to SNC-Lavalin GDS, Inc. and SNC-Lavalin Constructors Inc. to provide feasibility studies, front end engineering and design (FEED) services, and turnkey engineering procurement construction (EPC) contractor services for DKRW’s future coal-to-liquid projects. The Medicine Bow, Wyoming coal-to-liquid project’s FEED is expected to commence during the 4th Quarter 2006.
DKRW has already selected GE’s coal gasification technology and Rentech’s Fischer-Tropsch (FT) technology for the proposed Medicine Bow CTL plant. (Earlier post.)
We selected SNC-Lavalin because of its process engineering expertise in gasification and syngas conversion to fuels, its experience in thermal power plants and for its extensive experience with oil sands in northern Alberta from which we expect to learn a great deal about designing and building a facility of this size in a rather remote region of Wyoming.—Robert Kelly, Executive Officer of DKRW and MBF&P
The Medicine Bow CTL plant will initially make about 11,000 bbl/day of transport diesel and other fuels using high Btu, low-sulfur coal from the Carbon Basin Coal Reserve from a mine being developed and operated by Arch Coal. Diesel and other transport fuels will be sold to regional customers along with the carbon dioxide, sulfur and other byproducts.
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