Published: July 28, 2009 07:37 pm      

A Reader's View: Time for a reality check on Power Holdings

Editor:

The recent Power Holdings’ new items give a rosy scenario. It’s time for a reality check.

I rechecked Power Holdings’ papers in Brehm Library. Their plant summary calls for slurry pipeline(s) to transport coal to plant but railroads/trucks will be used in the beginning. The coal reserves are coming from the Hoyleton area, which has a railroad, but a spur is needed for the plant. Will these railroad additions be built? Will trucks be used?

There are issues regarding the slurry pipelines. Power Holdings wants the coal to be washed at the mine to reduce sulfur content. Does Hoyleton have an adequate water supply? Where will they get it? Slurry pipelines need a water ratio of 1 to 1 to transport coal. Every pound of coal needs a pound of water. This plant needs 5 million tons of coal, so 5 million tons of water are needed. I’m not doing the math, but that is a lot of water.

I could not find any information on water needs for washing coal, but how will the mine process the dirty water?

The reality checklist should include the proposed plant’s location on a fault line. Power Holdings’ letter to citizens of Washington and Jefferson counties claim their plant’s design can handle earthquakes. How do you earthquake-proof anything? How do you get insurance for an explosive plant on a fault line?

The biggest does of reality is the economics of syngas. The U.S. Energy Information Administration claims the U.S. has a large supply of natural gas. Some sources claim we have a 30 year supply of natural gas. Power Holdings stated in a recent article their plant would operate for 30 years. On July 25, the natural gas price was $3.65. To make a profit, Power Holdings would need the price between $7 and $8. Energy markets are uncertain, but there is no profit here.

The bankers are going to look at all this information and deny money, as should any potential investors.

Economic reality doomed the ethanol plant. The company purchased ground with a railroad access, obtained a permit, and held a successful open house at Waltonville School. The bankers denied them financing because of simple economics.

My final item on the checklist is a statement I used in a previous letter. This plant can be described in one sentence. It will be a big-time polluter of 10 million tons of global warming CO2 per year, built on a fault line, using 8 million gallons of water per day, employing just 50 people per day — and totally destroying a neighborhood. And yes, I rechecked Power Holding’s paperwork stating 50 employees per day. So much for Power Holdings’ rosy scenario!



Linda C. Borowiak

Tomahawk Lane

Ashley