WASHINGTON, (WOWO) — The U.S. Department of Energy (DOE) has conditionally committed up to $1.56 billion in financing to help restart and repurpose a shuttered coal-gasification plant in western Indiana into a low-carbon ammonia fertilizer facility.
The funding, offered through the DOE’s Loan Programs Office (LPO), would support Wabash Valley Resources LLC (WVR) in converting its idled West Terre Haute facility into a modern operation capable of producing about 500,000 metric tons of anhydrous ammonia annually. The ammonia would be used to make fertilizer for farms across the Midwest.
The project is expected to revitalize a former coal-community, creating hundreds of union construction jobs and dozens of permanent positions once in operation, according to DOE and company statements.
If finalized, the project would become one of the largest carbon-capture and storage (CCS) installations in the country. Wabash Valley Resources plans to use petroleum coke and other waste feedstocks to generate hydrogen and ammonia while capturing and permanently storing up to 1.65 million tons of carbon dioxide per year underground.
The DOE emphasized that the commitment remains conditional, meaning WVR must meet technical, environmental, and financial milestones before the loan can close. The agency issued a Finding of No Significant Impact earlier this year following an environmental review under the National Environmental Policy Act.
The $2.4 billion project aims to lower dependence on imported fertilizer from countries such as Canada and Russia while helping decarbonize one of the most energy-intensive industries in the U.S. agriculture sector.
Wabash Valley Resources acquired the site in 2016 after its previous owner, SG Solutions, shut down operations. If completed, production could begin later this decade.
