TransGas and SK E&C Team on West Virginia Coal to Ultra-Clean Gasoline Project

CHARLESTON, W.V., Oct. 28 /PRNewswire/ -- TransGas Development Systems, LLC today announced an agreement with SK Engineering & Construction Co., Ltd leading to engineering, procurement and construction of its first U.S. coal to gasoline plant to be located in Mingo County, West Virginia called Adams Fork Energy.

The Adams Fork Energy project will convert regional coal into premium grade ultraclean gasoline, producing 18,000 barrels per day (756,000 gallons). "When fully developed the Adams Fork project will be the largest coal to gasoline project in the world," said Adam Victor, President and CEO of TransGas Development Systems LLC.

Put in proper perspective, less than fifty Adams Fork facilities nationwide would eliminate 100% of America's need to import foreign gasoline, create over 150,000 US jobs and move the United States toward becoming a net exporter of gasoline.  

The project team has been issued a permit to construct by the West Virginia Department of Environmental Protection and plans to begin work on the site during the second quarter of 2011.  "In my years as a regulator and as an engineer I have seldom seen the companies go to the lengths to which TransGas and their engineers have gone to develop a process that meets all the emission requirements," said Ron Potesta, president of Potesta and Associates.

"Four year ago, TransGas found in Governor Joe Manchin, a leader who understood the importance of coal as the primary resource to developing America's future energy independence and the need to forcefully address the many fallacies that have arisen surrounding the environmental effects of mining and using coal. Governor Joe Manchin also understood that a fleet of coal to liquid plants would form the cornerstone of a resurgence of American industrial might – built by skilled American unionized construction workers, working in close concert with Project owners. In Governor Manchin, we saw a leader who had the strengths and convictions that prompted us to make the considerable investment in West Virginia that TransGas has made," said Adam Victor.

Gov. Joe Manchin commended the efforts of TransGas Development Systems and SK Engineering for their partnership with the state of West Virginia.  "This project truly indicates how serious we are about matching our abundant coal resources with the technology available to produce clean energy.  West Virginia is fully committed to being a leader in energy self-sufficiency and this development shows that we are dedicated to using our coal resources as prudently as possible.  This project's success will truly be far-reaching for the coal industry," said the governor.    

The plant will have several process components. First, coal is gasified to produce synthesis gas, using Uhde PRENFLO PDQ gasifiers. The synthesis gas will then be cleaned to remove all impurities, turning most into marketable byproducts. Next, the synthesis gas will be converted into methanol, which in turn will be converted into gasoline utilizing ExxonMobil Research and Engineering Company's (EMRE) MTG process.  During the operation of the integrated facility, air emissions are expected to be so low that it will qualify as a minor source under US law.

"With this agreement, SK E&C will be able to apply our worldwide experience to helping America utilize its coal resources to reduce its imports of oil," said Yang Kyoo Ju, President SK E&C America Inc.  SKE&C (skec.com) is the Engineering & Construction arm of SK Group. The development team of SK E&C and Uhde is a world class team of players to join with in developing this project.

"I am proud of the efforts I have led in the Congress to encourage coal-based, alternative energy," said U.S. Representative Nick Rahall.  "Coal-to-Liquids promises energy independence from the Middle East, and jobs in southern West Virginia.  I have sponsored legislation and am urging the Department of Defense to provide the U.S. Air Force with long-term contracting authority, which will help ensure a marketplace for alternative, coal-derived fuels, and further cement coal's place in our Nation's energy portfolio."

U.S. Representative Nick Rahall has been leading the fight in Congress to encourage coal-based, alternative energy.  He organized a coal-to-liquids conference in Beckley in 2007, bringing together the U.S. Air Force and other stakeholders to showcase southern West Virginia for facilities like the TransGas project.  He has sponsored legislation to encourage a coal-to-liquids industry in the United States, and to provide the U.S. Air Force with long-term contracting authority to create a marketplace for alternative, coal-derived fuels.  Congressman Rahall is a consistent champion of coal, and its potential for breaking the grip of foreign oil on the U.S. economy.

TransGas Development Systems LLC (TransGas) is the project developer. TransGas has worked with industry experts to develop some of the most innovative ways to produce clean, low cost, American-made energy for over a quarter of a century.

One of Korea's largest corporations and one of the leading business organizations in the world, SK Group is made up of 75 companies including nine that are listed on the Korea Stock Exchange. SK has a presence on six continents and 30,000 employees.  SKE&C is one of the world's most qualified engineering, procurement, construction, together with operation & maintenance services organizations.  Their experience includes Korea's largest oil refinery, the Cadereyta and Madero Refinery upgrades in Mexico, full-scale refinery projects in Kuwait, UAE, Brazil and Ghana.

Uhde belongs to the ThyssenKrupp group, who employ over 175,000 employees worldwide. In addition to an almost 70 years history of developing gasification technologies, Uhd\e is one of the world's leading engineering groups specializing in the design of chemical, refining and other industrial plants in all four corners of the globe with more than 2,000 plants to its credit.

This press release includes statements that may constitute "forward-looking" statements, usually containing the words "believe," "estimate," "project," "expect," or similar expressions. These statements are made pursuant to the safe harbor provision of the Private Securities Litigation Reform Act of 1995. Forward-looking statements inherently involve risks and uncertainties that could cause actual results to differ materially from the forward-looking statements. Factors that would cause or contribute to such differences include, but are not limited to, future trends in wind and other projects, acceptance of the Companies products and services in the marketplace, competitive factors, dependence upon third-party vendors, and other risks. By making these forward-looking statements, the Companies undertake no obligation to update these statements for revision or changes after the date of this release.

SOURCE TransGas Development Systems, LLC