The Gasification of Indiana | WHAT REALLY HAPPENED


The Gasification of Indiana

When the Indiana Gasification plant was first proposed for Rockport by the Daniels administration in November 2006, the price of natural gas was on the rise at around $9/mmbtu. Suddenly taking coal's hydrocarbons and converting them to usable "syngas" seemed to make sense, at least until you got to the details.

That is presumably why the legislature passed a law telling the state's gas utilities that they had to negotiate thirty year contracts with Indiana Gasification on a "take or pay" basis that forced Indiana ratepayers to use syngas no matter what the cost.

Then, Indiana Gasification trotted before the Indiana utility Regulatory Commission with their proposal while negotiations were taking place. Sadly for them, the utilities soon discovered that even with prices for natural gas on the rise, that the required price for syngas was just too high to be competitive with even volatile natural gas, which by early 2008 had risen to $13.

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