Tenaska cancels plans for coal gasification power plant

Nebraska-based Tenaska has dropped its plan to build a $3.5 billion coal gasification power plant in Christian County, Ill., according to a report from the St. Louis Post-Dispatch. The company said the planned 716 MW Taylorville power plant is no longer viable, partly because lawmakers did not agree to a 30-year contract to purchase electricity from the plant.

The report states the company also said its decision was affected by increasing supplies and lower costs of natural gas.

According to the Post-Dispatch, the company had been pursuing the project for more than five years. The plant would have converted coal to synthetic gas and used the synthetic gas to create electricity. Emissions from the plant would have been captured and stored underground.

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