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Construction of coal-based generating plant
'on the third-yard line'
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[DEC. 20, 2003]
An Illinois coal-based
generating plant that will be located just south of Lincoln at
Elkhart will soon become more real to more people. The project thus
far has been a distant, paper-only reality in the form of plans,
studies, agreements, contracts, arrangements, compliances, research,
requests and regulations. But all that is about to change.
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Corn Belt Energy plans to break ground
by mid-June. The construction phase is anticipated to take 30
months, and commercial operation is slated to begin by Dec. 2007.
The building and operation of this facility not only brings energy
in the form of power, but it breathes new hope to the area by way of
jobs and commerce.
Dave Hawkinson of Corn Belt Energy
said, "I kind of like to say that we're on the third-yard line,
looking at the goal, and hope we get across it very soon."
Hawkinson introduced the new lead
project manager, Ed Smith. The men have been visiting various area
government leaders, including the city of Elkhart, the city of
Lincoln, Lincoln/Logan County Chamber of Commerce and the Economic
Development Council, to share the progress of this great project.
Smith went over a nearly completed
project development checklist, explaining what has been completed
and what will be happening next.
Economic
impact
Construction jobs will total 350 to
400, and there will be 27 permanent jobs at the generating plant.
The company will utilize union craft laborers, who usually pull $30
per hour wage. The company is committed to using local labor before
contracting with outsiders.
The plant will yearly consume 350,000
tons of coal, 23,000 tons limestone and 670 tons ammonia. These will
be purchased from local resources. It is estimated that in the
lifetime of the plant it will use 12¼ million tons of coal.
Economic impact research shows that for
every $1 spent there is an $11-$13 rollover in the community.
Between the people having jobs, increased commerce and tax revenues
that will benefit the community, Smith said, Elkhart is going to
become a wealthy community.
Like any other major industrial
startup, there has been a long list of slow-moving approvals to
meet, jumping through one hoop at a time. That list is now nearing
completion.
Major
accomplishments
1.
The project structure is finally in place.
Wabash Valley Power Authority of
Indianapolis and Corn Belt have signed agreements to each own 50
percent.
Wabash holds an A-plus on the Standard
and Poor's rating. That's exceptional, particularly for co-ops,
Smith said.
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article] |
 2.
Partnership and oft-take agreements are signed.
This is the sale transaction between
the generating company and Corn Belt and Wabash Valley.
Their term "come hell or high water
agreements" means that even if the plant fails to run, they will
make the debt payment, which Smith says is very favorable to
financing.
- The air permit is in place.
- The EPC for bid specifications is
due back in January.
- Financing -- Banks that are
interested in financing the project have approached them
- Water study completed -- There's
50 percent more usable water than needed for operation.
- Coal contract signed -- Corn Belt
has a 30-year contract with Turris Coal, which has the lowest cost
coal.
- Property options being negotiated
-- Environmental impact studies are near completion.
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Grant
funding in place -- The project will cost $148 million. Of this
cost, $23.5 million in funding is coming from what was DCCA and is
now DCEO, $25.6 million from the Department of Energy, $2 million
from the Clean Coal Review Board.
The biggest holdup has been with the
U.S. Department of Energy, Smith said, and that should be coming
through soon.
Smith, who
has been working on the project seven years, has committed himself
to bring the project to fruition. He takes the place of Tony
Campbell, who is moving to Missouri. Smith was with Corn Belt as an
employee but said that because he believes in this project he gave
up his regular job to form his own consulting company, which he
began with a contract with Corn Belt, "to see this thing through."
[Jan
Youngquist] |
