Liquefied natural gas has long been used to power vehicles like buses and garbage trucks. But this week, one of America's largest coal companies, Alpha Natural Resources, announced a plan to build an LNG plant right next to a Gillette-area mine. That LNG will then be used to power the mine's massive coal haul trucks.
Alpha has been working to replace diesel with liquefied natural gas in mining vehicles since 2012. They've now selected Seattle-based Plum Energy LLC to construct an LNG plant at Alpha's Eagle Butte Mine. Both companies say that because of low natural gas prices, their partnership will reduce fuel costs. University of Wyoming professor Rob Godby says this is a good business move because the coal industry is under pressure.
"Small changes in their costs can make a big difference," Godby said. "And also, mining in the Powder River Basin is getting more expensive. So at the same time they face regulatory challenges, they also face cost challenges. And so, right now, they're looking at anything they can do to keep their product competitive."
Godby also said that the plant could eventually sell LNG to other mines in the coal-rich Powder River Basin. Alpha Natural Resources Expects the project to come online in March of 2015.