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First plant would be built in Schuylkill County
Northeast Pennsylvania Business Journal
May 2000
Waste Management & Processors, a member company of John Rich Family Enterprises, has
proposed Schuylkill County as the site for America's first coal gasification and liquefaction plant.
The facility would be built near the sight of Gilberton Power Co. in West Mahanoy Township.
"The plant would use 2,500 tons a day of feed stock and produce 5,000 barrels a day of diesel fuel,"
Rich notes.
Rich adds that Schuylkill County alone could support $800 billion worth of liquid product. But
first, the state and federal governments need to finalize legislation that would grant tax incentives to
make the $312 million project economically viable, Rich says.
"It's too costly to do without legislation. The legislation puts it into today's market at competitive
prices."
That's why Rich is trying to spread the word. The company established a Web site,
www.ultracleanfuels.com, to tout the advantages of the new fuel.
Rich also testified before hearings conducted by the Pennsylvania House of Representatives' Joint
Legislative Air and Water Pollution Control and Conservation Committee.
He urged lawmakers to support legislation on the state and federal levels that would provide tax
credits for the new industry, which could provide up to 1,000 construction jobs. He cited the new
industry's potential to reduce acid mine water drainage and provide other environmental benefits
without the need for state or federal funds.
But government dollars are needed to get the industry started.
"It would bring down the amount of money we need to borrow. The jobs we create would pay the
money back to the state," Rich notes.
Lawmakers see potential
"The US has more coal than the rest of the world has recoverable oil," said U.S. Rep. Tim
Holden, St. Clair, to members of Congress in addressing the topic.
State Rep. David G. Argall (R-124), committee chairman, co-sponsored legislation to provide an
investment tax credit for construction and operation of Ultra Clean Fuels production plants.
Rep. Argall sees advantages to Rich's ideas. "I'm always on the lookout for environmentally-safe
new industries to provide some much-needed jobs for our area. Mr. Rich's proposal is a very intriguing
idea which deserves our full consideration."
Rep. Argall says lawmakers look favorably on the viability of the new industry. "Many members
of the House have spoken to me on the issue and they have all been very positive. The thought that
northeastern Pennsylvania could once again serve as a worldwide energy center is a very exciting
prospect."
Some $46.8 million in state funds have been earmarked for the project contingent upon passage
of a financial assistance package of tax credits or other funding from the feds. The state calculates a
$115.3 million return on its investment.
If the government agrees to the proposal, private industry would be responsible for financing,
construction and operation of the plants. The government would pick up the tab for making the
plants operational through tax incentives to offset capital expenditures.
American coal reserves are estimated at 274 billion tons with Pennsylvania ranking as a leading
state with an estimated 34 billion tons.