Midwest neighbor states divided over coal gasification, pipeline projects

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Proposed coal gasification plants have divided Midwest governors, legislatures and energy suppliers. They also spell out the complexity of linear land use disputes across Illinois and Indiana and put in limbo a carbon-dioxide (CO2) pipeline from the Midwest  plants to U.S. Gulf Coast enhanced oil recovery (EOR) projects.

Illinois Gov. Pat Quinn has vetoed a bill for two coal gasification plants planned by two different investors in his state, while Indiana Gov. Mitch Daniels says his state’s terms with investor Leucadia National Corp. for a similar plant offer Hoosiers a better deal and should move forward. The Indianapolis Star’s Ted Evanoff writes that Daniels says Quinn’s veto won’t affect Indiana’s gas plant plan.

The Midwest Energy News reports that a $2.6 billion pipeline to carry carbon dioxide from Midwestern coal gasification plants to Gulf Coast oil fields – announced with much fanfare in 2009 – is currently in a holding pattern with no confirmed suppliers. And the Indiana Senate last month failed to approve a bill that would have given eminent domain powers to Indiana’s Department of Natural Resources (DNR) for the pipeline, Midstream.com rep0rts.

The Sierra Club chimes in with its appeal to stop Daniels’s “multi-billion-dollar boondoggle.”

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