US-based energy and technology company Frontieras North America signed a memorandum of understanding with Western Fuels, owner and operator of Wyoming's Dry Fork mine, to develop a coal-to-fuel plant at the facility.
Under the memorandum, the companies established a framework to negotiate the terms of a ground lease for the proposed conversion project to be developed at the mine.
Frontieras would use processing technology designed to convert Dry Fork's sub-bituminous coal into liquid fuels including ultra-low-sulfur diesel (ULSD).
Through this partnership, Western Fuels would purchase some of the ULSD produced at the site for its mining and transportation operations. Frontieras would use Western Fuel's railway infrastructure to ship products made at the new facility.
A coal-feedstock supply agreement would have the Dry Fork mine initially supply an estimated 2.7mn short tons (st)/yr (2.45mn metric tonnes) of coal and about 5.4mn st/yr upon completion of the project.
"We are looking ahead to determine opportunities that expand this relationship across the full Western Fuels cooperative — broadly serving our member utilities and their communities while fulfilling our mission," Western Fuels chief executive Adam Anderson said.
The companies have not disclosed financial details or details of the project's construction.
The Wyoming project follows Frontieras' announcement in January about its plan to develop a $850mn coal-to-fuel plant in West Virginia.
Output from Dry Fork in April-June rose to 1.08mn st from 1mn st a year earlier, US Mine Safety and Health Administration data show.
