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15 December 2008

CHARLESTON, W.VA, U.S.A. — TransGas Development Systems LLC (TGDS) plans to build a coal-to-liquids plant in West Virginia, company officials announced today during the West Virginia Energy Summit.

TGDS has filed a permit to build the $3 billion facility in Mingo County.

“West Virginia remains firmly committed to advancing coal-to-liquids technology. We are excited that TransGas Development Systems shares that goal and is prepared to invest in our state,” said Gov. Joe Manchin. “The decision to construct this coal-to-liquids plant will encourage more efficient use of our coal, help create more job opportunities and will continue us on our path to secure a more stable and independent future in energy.”

Projected to be operational by 2013, the plant will be built in Mingo County’s new energy park near Gilbert. The construction phase is expected to generate 3,000 jobs. When fully staffed, the facility will employ as many as 200 workers. TGDS estimates the facility will use up to 3 million tons of locally mined coal a year to produce more than 6.5 million barrels of gasoline.

“As a supporter of coal-to-liquid technology and West Virginia coal, I am pleased to see this latest effort taking shape in Mingo County,” said Sen. Robert C. Byrd. “This project has the potential to bring many well-paying coal jobs to West Virginia, and that is always good news for our state.”

“What we need are serious initiatives that put West Virginia coal at the forefront of meeting our nation’s energy needs, while also creating good jobs and making meaningful investments in our state,” said Sen. Jay Rockefeller. “West Virginia needs to focus on projects that will deliver and put us on a path toward a promising energy future that I know we can and will achieve through tomorrow’s clean coal.”

“America’s need for energy is continuing to grow and the path toward a better, more diverse energy future in America must include coal as a major player, along with renewables,” said Rep. Nick J. Rahall II. “For years I have worked to help clear the way for coal to address our energy challenges more cleanly, efficiently, and affordably, and this new West Virginia plant will help to fulfill that goal. Southern West Virginia, deep in the heart of our nation’s coal country, is the perfect place to help jumpstart a national coal-based liquid fuels industry.”

TGDS has signed a licensing agreement with Uhde Corporation of America for the use of the new PRENFLO gasifier reactor. The proprietary technology is under authorized license from Uhde GmbH, Germany.

The PRENFLO technology handles all types of coal as well as petroleum coke, char and biomass. In addition to producing gasoline, the gasification process produces economically valuable by-products such as slag and fly ash used in construction. Based in Germany, Uhde is one of the world's leading engineering companies in the design and construction of industrial plants.

“Coal must be a central part of our nation’s energy future and with such a high-profile investment in coal-to-liquid technology this new plant will help ensure that is the case,” said Rep. Shelley Moore Capito. “This is an exciting announcement for our state, and it will be a clear example of the important role West Virginians and coal-to-liquid technology can play in making our nation more energy independent.”

The facility will be served by two 1,000 MWth PRENFLO gasifiers in the Direct Quench version (PDQ). The facility will use a catalytic process to produce gasoline.

TGDS worked with the West Virginia Development Office and the Mingo County Redevelopment Authority (MCRA) to develop the project.

“This is the most exciting day ever for Mingo County,” said Mike Whitt, executive director, MCRA. “We thank Gov. Manchin for referring TransGas to Mingo County. We look forward to working with the governor and TransGas to bring this project to fruition.”

West Virginia Department of Commerce
90 MacCorkle Avenue SW
South Charleston
West Virginia
WV 25303

Tel: +001 304 5582234
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