Governor Confident of Plant’s Future
By Bill Bartleman, The Paducah Sun, Ky.
Jul. 1–Gov. Steve Beshear said he feels good about Kentucky’s chances of getting a $7.6 billion coal-to-liquid fuels plant in western McCracken County.
He said landing the plant, which Clean Coal Power Operations of Louisville proposed, is one of his top priorities. Last week, the state gave tentative approval for an incentive package worth up to $550 million.
"Our economic development folks are constantly in touch with them to make sure they have everything they need to make a decision," Beshear said Monday during a stop in Paducah. "I feel good about our position but won’t feel great until we are sure they’ll be here."
The plant would create about 1,500 jobs within the first four years, and produce about 40,000 barrels of diesel and liquid fuels a day. It also could be expanded to produce 100,000 barrels daily.
Terry Black, chief executive officer of Clean Coal, said the company also is considering sites in Missouri and Illinois. He expects a decision by the end of the month.
Black said the state incentives, cooperation from state and local officials, and benefits of the McCracken County site along the Ohio River make it highly attractive.
Mayor Bill Paxton also feels good about the chances of the company picking Paducah. Paxton, in an interview with the Sun on Monday, made his first public comments about efforts to recruit the plant.
"I’m excited about the incentive package the state has proposed," Paxton said. "It is another step down a long road to making it a reality. We are continuing to work with Clean Coal and doing everything we can to make it happen."
Paxton said no local incentives have been offered.
"So far a request for local incentives has not come up, and they’ve given no indication they’ll ask for anything," Paxton said. "The big deal is the state incentive."
He said it is likely that the state will be asked to help provide infrastructure improvements for utilities and roads. However, those won’t be requested until planning is further along, he said.
The plant is proposed for the 1,740-acre Riverport West industrial park, which is owned or under option by the Greater Paducah Economic Development Corp.
GPEDC last year borrowed $1.2 million from the city and county to begin buying land. The money will be repaid when the land sells.
Beshear said the plant, which would be the largest coal-to-liquid fuel plant in the country, is important to make the United States less dependent on foreign oil.
"I am sick and tired of watching every year billions of American dollars being sent overseas — mostly to countries that hate our guts — because we need their oil to heat our homes and run our cars and trucks," Beshear said.
"If there was ever a time for America to be energy independent, that time is now," the governor said, adding that Kentucky’s abundance of coal should make it a leader in development of alternative fuels.
Bill Bartleman can be contacted at 575-8651.
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