GILBERT, W.Va. — Plans for a multi-billion dollar coal to liquid plant in Mingo County are still alive, according to state’s Division of Energy director.
Jeff Herholdt recently told state lawmakers TransGas Development Systems has hired a contractor for the project, ACS of Madrid, Spain.
“This is one of the largest construction companies in the world,” Herholdt said. “They have just inked a deal with TransGas. They would be responsible for building the plant.”
The design for the $4 billion project, located near Gilbert, is complete and site preparations have been underway for several months.
Financing remains an issue, however. After Herholdt told lawmakers he didn’t have anything new on the financing options, Logan County Senator Art Kirkendoll said the state needs to be more aggressive in helping projects like TransGas.
“We’re sitting on our thumbs waiting for an investor to come with $2 million. Why don’t we go get those investors?” Kirkendoll asked.
Herholdt said the recent increase in oil prices further legitimizes the project.
“The whole thing that drove this is they needed $60 (a barrel) oil,” he said. “Oil is $102 now. The incentives are there.”
It’s expected to take about three-and-a-half years to build the TransGas plant.