GE Energy to develop coal gasification plant

By OGJ editors
HOUSTON, Jan. 26 -- GE Energy Financial Services will participate in the development of a 630 net Mw integrated coal gasification combined cycle (IGCC) facility in Henderson County, Ky., with its acquisition of a 20% equity interest in Erora Group LLC. Financial details of the acquisition were not disclosed.

The project—Cash Creek IGCC—will be built along the Green River and will generate power and produce substitute gas using coal gasification technology. It would produce fewer air emissions and use less water than general coal use to provide power for 400,000 homes, GE said.

Cash Creek IGCC will provide the flexibility to interconnect with three electric grids—PJM West, MISO, and SPP—and would be within 6 miles of both the ANR and TGT interstate gas pipeline connections, enabling efficient transport of gas to end users.

Construction of the Cash Creek facility is expected to begin late this year, pending financial close and required project approvals. Commercial operation is scheduled for 2010-11.

In making this investment in Erora, GE joins New York investment firm D.E. Shaw Group, which acquired a majority interest in the company last year.

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