Energy: Lima Energy prepares for construction

First Posted: 1/30/2014

LIMA — In 2014, Lima Energy plans on completing financing behind the local project and starting construction.

There are also permits to obtain and engineering work for the long-planned energy plant.

“Whenever we get the financing done, that clock will start,” said Dwight Lockwood, a senior adviser for USA Synthetic Fuel, of which Lima Energy is a subsidiary.

It’s a lot of work, to say the least, but definitely not something unattainable. Construction is expected to last 24 to 30 months, then the facility can open for operation.

The first phase of the project calls for 70 employees, all new jobs, to operate. Those are full-time jobs with benefits.

In October, Lima Energy submitted its air permit application to the Ohio Environmental Protection Agency.

While a couple years may seem like a long time, Lima Energy actually is moving at a fairly fast pace now. It was just over a year ago in October 2012 that the City of Lima handed over the former Lima Locomotive Works site to Lima Energy.

The city acquired the property in 1999. By last November, officials held a groundbreaking at the 63-acre site.

The Lima Energy plant will use what the company calls ultra-clean BTU conversion gasification technology to convert solid hydrocarbons — such as renewable resources, bio-feeds, petroleum coke or coal — into synthetic crude and synthetic gas.

Lima Energy already has a buyer for its synthetic crude lined up, neighbor Husky Energy’s Lima Refinery. The contract calls for the supply of 80 million barrels of synthetic crude to Husky over 10 years.

Lima Energy also may be able to buy feedstock and petroleum coke from Husky that could be delivered by rail car or conveyor belt. The company plans to sell a byproduct, carbon dioxide, for enhanced oil recovery efforts in eastern Ohio. It would be shipped by a pipeline, which would require permits and construction.

The company wants to store remaining carbon dioxide in the ground near Lima.

Kokosing was hired to build Lima Energy’s plant. The company is known as a major highway construction firm but also handles other large-scale construction operations.

The Technology Innovation Center for the company will be along South Main Street and will be home to the company’s administration facility, research and development laboratories, auditorium, conference center and clean technology showroom.

Primary production of the Lima Energy Project, when fully operational, has been designed to produce 8 million barrels of oil equivalent, 47 billion cubic feet per year of synthetic natural gas and 516 megawatts net of electrical power.

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