Ind. coal-gas bill stalls CO2 pipeline project - 13 WTHR Indianapolis

Ind. coal-gas bill stalls CO2 pipeline project

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INDIANAPOLIS (AP) - Legislation passed by Indiana lawmakers requiring a new review of a proposed coal-gasification plant has also dealt a blow to a Texas company's plans for a carbon dioxide pipeline.

Denbury Resources spokesman Ernesto Alegria says Indiana Gasification's proposed $2.8 billion plant near Rockport, Ind., was the Plano, Texas-based energy company's last hope for making its proposed 440-mile pipeline a reality.

He says the Rockport plant was the last "potential source" of carbon dioxide for the Indiana-to-Mississippi pipeline to deliver the gas to depleted Gulf Coast oil fields to extract remaining oil.

Indiana lawmakers approved legislation last Saturday requiring state regulators to give a new review to a contract that mandates Indiana to buy the proposed plant's synthetic natural gas. The plant's developers say that bill effectively kills their project.

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