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If the facility gets the go-ahead, it would result in the creation of more than 3000 jobs and 500 ongoing jobs from plant operation and mining.
Indiana Gasification partner and former EPA assistant administrator for air Bill Rosenberg said it was an important step towards a cleaner future for Indiana.
“The IDEM proposed permit demonstrates that our gasification facility will be the cleanest coal plant ever permitted in the United States and among the cleanest in the world,” Rosenberg said.
“This facility demonstrates that clean coal remains an integral part of the 'all-of-the-above' approach to domestic energy production endorsed earlier this year by President Obama and numerous energy experts.”
While the IG plant will not burn coal, the gasification process will result in substitute natural gas and liquefied carbon dioxide being produced.
The company said about 80% of the plant's SNG output would be sold to the Indiana Finance Authority, while the CO2 produced by the production process would be compressed, sold and shipped from Indiana to the Gulf Coast.
From there, the product would be injected into depleted oil wells for enhanced oil production.
While the US has a predicted 28% of the world’s coal reserves, it has just 2% of the world’s oil reserves and 4% of natural gas.
Indiana Gasification said the facility was proof that clean coal was feasible, available and affordable.
“Moreover, the permitted emissions limits for the IG facility prove that such a project is safe and protective of Indiana air quality,” the company said.
While construction of the facility is subject to IDEM approval of the environmental permits, Indiana Gasification predicts construction of the plant may begin as early as 2013 if the project is green lighted.