US CF Industries suspends coal-gas plant

28 October 2008 16:33  [Source: ICIS news]

HOUSTON (ICIS news)--CF Industries has suspended its proposed coal gasification project because of uncertainty in costs and US environmental policy, the company's CEO said on Tuesday.

"Our leadership team determined that we cannot justify the cost," said Stephen Wilson.

In particular, the company did not know how future US regulations could treat emissions of carbon dioxide, Wilson said. Another factor working against the project was uncertain capital costs.  

CF had planned to build the plant at its nitrogen complex in Donaldsonville, Louisiana. It would produce hydrogen and carbon dioxide from a mixture of petroleum coke and coal.

The hydrogen produced from the coke and coal would replace that being produced at the complex's four anhydrous ammonia plants.

CF Industries still plans to pursue its $1.3bn (€1bn) nitrogen complex in Peru, Wilson said.

When finished, the complex could produce 2,100 tonnes/day of ammonia and 3,300 tonnes/day of granular urea.

In other news, CF took a $11m hit at its Donaldsonville complex as a result of disruptions caused by Hurricane Gustav, the company said.

($1 = €0.80)

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Author: Al Greenwood
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