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River shipping integral to coal-to-diesel, biofuels plants

Abundant riverports across the region are a magnet for industrial growth, notably in the energy sector.

Clean Coal Power Operations of Louisville cited proximity to the Ohio River as a key factor in picking 1,740-acre Riverport West in western McCracken County for a planned $7.6 billion plant to convert coal to diesel and other liquid fuels. Construction could begin by the end of the year, allowing production to start in two years.

At its peak, construction would require about 1,500 workers. Full-time employment would hit 830 after the first phase and increase to 1,500 after completing all four phases. Clean Coal would use the prime shipping location to bring in coal and move products.

“The Kentucky Economic Development Cabinet calls it one of the best sites in the state,” said Ken Canter, director of the Paducah-McCracken County Riverport, whose authority owns 236 acres in Riverport West.

Barges can ship bulk materials to the Port of New Orleans for about $15 per ton - less than a third of trucking rates and probably less than half of rail rates, he said.

The Clean Coal plant was previously proposed at two sites in Illinois, including Cairo, both on the river.

River access is integral to eight biofuels plants contemplated, planned or under construction in a three-state area around Paducah. Together they would cost $1.25 billion, employ 585 people and produce 175 million gallons of fuel annually. They range from Henderson to Cairo, and from Obion County, Tenn., to Pulaski County, Ill.

The largest by far - a $450 million, 150-job plant that British investors target for the developing Marshall County-Calvert City Riverport - would generate a combined 135 million gallons of ethanol and biodiesel annually. Four Rivers BioEnergy Co. has purchased about 250 acres, finished much of its permitting and could start construction within a few months, said Bill Butler, Marshall County economic development director.

“They have to have the Tennessee River because of the materials they bring in by barge,” he said. “That was a big selling point for me when we were trying to recruit them.”

The river is chiefly why Precision Steel and dry dock operator First Marine Transportation Corp. formed Calvert City Marine Works about 18 months ago to build barges.

Community leaders have an Energy Island concept for Hickman-Fulton County Riverport, under consideration by Dallas-based Earth Biofuels for a plant to produce 30 million gallons of biodiesel fuel annually. The riverport has two well-established grain terminals, run by Bunge and Cargill, and moves commodities for local employers such as Insteel, SGL Carbon, Helena Fertilizer, Speed Ag Services and Hickman Pipe and Tube.

“We’ve been trying to convince the state that riverports are a major arm of economic development, but we’ve had no home in state government for 18 years,” said Canter, president of the Kentucky Association of Riverports.

Rep. Frank Rasche of Paducah introduced HB 491 earlier this year, seeking to form a committee to advise the state transportation secretary for riverport grant requests. The legislation passed the House but died in the Senate. Canter said Rasche will try again next year.

“We wanted a Department of Waterways set up just like the Department of Aviation and the Department of Highways,” Canter said. “But we knew that would probably not happen.”

Transportation accessibility is the leading factor that industrial firms consider in site selection, which means riverports are integral to economic development, he said.

“It seems like all the conditions favor using marine assets,” Canter said. “We feel good about our chances in state government to get the consideration and resources we need to continue to solicit new business in Kentucky.”

Joe Walker can be contacted at 575-8656.