Riverview Energy president discusses coal-to-diesel project

Don Steen

Staff Writer

The president of Riverview Energy Corp., Greg Merle, paid a visit to Spencer County Friday afternoon to attend the annual meeting of Lincolnland Economic Development Corp.

While he did not speak at the event in a formal capacity, he agreed to a brief interview before the event where he discussed his company’s proposed coal-to-diesel plant and its potential for the county. The $2.5 billion project would convert local coal resources into diesel fuel and other usable products through the process of hydrogenation. This facility would be the first of its kind in the United States, and would join two plants in China and one in Russia in producing clean diesel using modern technology and practices. However, Merle noted that the process itself has been employed off and on for a century.

Friedrich Bergius first developed the method of producing liquid fuel and other useful materials from coal via hydrogenation at high temperatures and pressure in 1913. While one hundred years of research has perfected the practice, the economic case for the process remains the same.

Merle explained that such plants were common in Europe throughout the WWII years and reconstruction, when access to oil was precarious and domestic coal reserves proved a more reliable source of diesel fuel. With natural gas, renewable energy and greater efficiency edging out coal’s former prominence as fuel for power plants in the modern economy, Merle said Indiana’s coal reserves in particular could find new life as a viable feedstock for his company’s proposed Dale facility.

Once in operation, Riverview Energy Corp. expects to convert 1.6 million tons of coal into 4.8 million barrels of clean diesel, 2.5 million barrels of naphtha and other usable products every year. Merle noted that very little waste would result from the process, and would not release sulfur, coal ash or other hazardous materials into the environment.

“One of the benefits of this technology is that unlike a power plant where you’re burning coal, you don’t burn or gasify it,” said Merle.

The plant is also expected to produce relatively little carbon dioxide, with much of the carbon fed into the process via natural gas converted into useful materials. The remaining carbon dioxide would also be comparatively cleaner and easier to capture should Riverview Energy Corp. invest in carbon capture methods at the site in the future, although Merle advised that this is not currently in the works.

“The process itself produces very little CO2,” said Merle.

The project would entail more than 2,000 construction jobs, with 225 permanent high-skilled jobs to come once the facility is online. Merle said the company is committed to hiring locally, and pointed to the steady stream of graduates from local schools and ready availability of usable coal resources as a key selling point to setting up in Spencer County.

The project is still very early in development, with permitting and financing still the primary focus. Merle offered a tentative timeline for development, which could see a groundbreaking in 18 months and final completion in three years, though this would be dependent on many factors. The facility would be built on 512 acres of recently annexed property north of County Road 2000 N. 

“We’re very happy to be here,” said Merle. “We know that this is a very good and clean process and we’re excited to be developing it in the U.S. We view this as an important step in a transition away from coal-fired power generation in a way that enables us to benefit from the continued use of coal and natural gas.”