South Heart Coal

South Heart Coal is a subsidiary of Allied Syngas and Great Northern Power Development (GNPD), which is affiliated with Great Northern Properties, the nation’s largest private coal reserve holder. SHC filed for a North Dakota air permit for a new coal gasification plant on August 18, 2005, the South Heart Power Project.

South Heart Coal is also applying to mine lignite coal for the plant through the proposed South Heart Mine.

On January 12, 2011, state officials said South Heart’s permit application for the nearly 4,600-acre strip South Heart Mine is complete and the company also intends to construct a power plant, the South Heart Power Project, next door. The coal company’s previous permit applications were deemed deficient, including areas in surface water, coal mine reclamation, business entity information and operation plans. The application’s completeness does not mean a permit is approved.

SHED is proposing a $2.2 billion project that would turn North Dakota lignite into syngas, which would be used for a 175 megawatt, combined-cycle electric plant. Rich Southwick, environmental vice president for GNPD, said the coal plant will process 2.4 million tons per year. While the coal gasification process in the original plans would have converted the coal gasification to methane, it will instead be converted to hydrogen, Southwick said. The captured carbon will then be piped to oil fields in the Williston Basin for enhanced oil recovery.

The facility is intended to serve electric power needs of people and industries of North Dakota and the Upper Midwest, according to the letter of intent. Southwick said the 350-acre plant would take about four years to construct. Construction is not expected to commence before July 2013.

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