Indiana Gasification also requires a $2+billion Federal Loan Guarantee which could end up as high as $3 billion if the building of a pipeline from Rockport to Mississippi is included. However, since Duke’s experience showed that two gasifiers alone could not be built for less than $3 billion w/o CCS it is questionable that an inexperienced company like Indiana Gasification, owned wholly by a New York holding company named Leucadia National could build the plant and the pipeline within a $3 billion Federal Loan Guarantee.
Further, through a sweetheart deal arranged by former Indiana Governor, Mitch Daniels to benefit his friend, Indiana Gasification project manager, Mark Lubbers, the State of Indiana has agreed to become the plant’s only customer and, in turn, will force Indiana gas consumers to buy the gas from the State at a significant premium over the price of natural gas.
Valley Watch, along with a coalition of other consumer and environmental groups have opposed the project since its inception in 2006 due to tremendous environmental and consumer impacts. I particular, Valley Watch has opposed the project because Rockport, IN is already one of the most toxic polluted places on earth. A town of about 2100 people has two industries which emit more toxic pollution that all the industrial toxic polluters in Atlanta, New York, Philadelphia, Pittsburgh, Indianapolis, Chicago, Seattle, Los Angeles and San Diego COMBINED.