Wabash Valley Resources has secured a federal loan to build an ammonia fertilizer plant in West Terre Haute. The U.S. Department of Energy announced its intent to loan the project $1.5 billion last fall.
Residents against the project called the loan closure “shameful” at a time when basic government services are shut down.
The DOE hopes the plant will reduce the amount of fertilizer the U.S. imports from other countries, bring down fertilizer costs for farmers and revitalize a coal community.
Greg Zoeller is WVR's vice president of external affairs. He said the loan will allow the company to start building the ammonia plant and restart the coal gasification facility for its use.
“One of the benefits of reutilization of this facility is it already had all the infrastructure. So about 40 percent of what we need is already here. Now it needs to be, let's say, upgraded," Zoeller said.
Zoeller said the company is required to use money from its investors first before tapping into the loan.
He said once WVR starts making ammonia, it will inject carbon emissions underground in Vigo and Vermillion counties. WVR has contracted with companies to construct the injection wells, but needs a permit from the Environmental Protection Agency before it can inject CO2.
Many residents there worry the carbon sequestration project could cause things like pipeline leaks, water and soil contamination, and earthquakes. Janet Cianteo is with Concerned Citizens Against Wabash Valley Resources.
“Foreign investors are taking our land and putting us at risk while they make billions of dollars. This is not about fertilizer, it’s about our property rights," she said.
South Korean company Samsung E&A is partnering on the project. It said the project will grow its U.S. market and contribute to a “more progressive energy future.” Residents worry this means WVR intends to sell ammonia-based energy overseas instead of selling low-cost fertilizer to Indiana farmers.
In a statement, WVR said that while financing and expertise from international investors makes the project possible, “the product, the jobs and the economic benefits stay here.” The company said shipping fertilizer overseas is also cost-prohibitive.
We couldn't reach the DOE in time for comment.
Rebecca is our energy and environment reporter. Contact her at rthiele@iu.edu or on Signal at IPBenvironment.01. Follow her on Twitter at @beckythiele.