Montana Governor Brian Schweitzer and executives from Arch Minerals, BMC and DKRW Advanced Fuels announced an initial agreement to construct a coal-to-liquids plant in Montana. The facility will be located on the site of the Bull Mountain Coal (BMC) mine outside of Roundup, MT.
The plant will gasify coal, converting a portion of the resulting syngas to 22,000 barrels per day of Fischer Tropsch diesel, with the rest going to generate 300 MW of power using IGCC (Integrated Gas Combined Cycle) technology.
The plant will be outfitted with carbon capture technology. Project plans are to sequester the carbon dioxide in certain Montana oil fields. Furthermore, the gasifier at the facility will remove virtually all mercury, sulfur and particulate matter from the coal.
Arch Minerals, BMC and DKRW Advanced Fuels are the equity partners in the project, and are the lead on the Medicine Bow CTL project in Wyoming. DKRW will use GE’s coal gasification technology and Rentech’s Fischer-Tropsch technology in both the Medicine Bow and Bull Mountain plants. (Earlier post.)