Top PPL official supports Schweitzer coal-fuel plan

By Charles S. Johnson of The Standard State Bureau - 04/11/2006

HELENA — A top PPL official told Gov. Brian Schweitzer Monday his company will do all that it can to help Montana attract a coal-to-liquids industry.

But Roger L. Petersen, president of PPL Development Co., Allentown, Pa., said such a massive project needs a team of businesses behind it.

Petersen met with Schweitzer for more than an hour.

He formerly headed PPL Montana, a PPL subsidiary headquartered in Billings that owns the dams and coal-fired power plants once owned by Montana Power Co.

Petersen, who still has a home in Billings, said he wants to help Montana. Schweitzer thanked him for his help.

“Any time, any way,” said Petersen, who flew from the East Coast for the meeting. “My heart’s still here. Any time I can help the state, I will.” One of Schweitzer’s top priorities is to have industrial plants built in the state that would convert Montana coal into diesel fuel. He has traveled out of state to promote the idea and taken business executives from large U.S. and global companies around Montana to pitch the idea.

“Everyone wants to be the first to build the second plant,” Schweitzer said.

The governor was confident that Montana will attract some of the plants because “nobody can beat the price of our lignite (coal).” “What this is going to take is a consortium (of businesses),” Petersen said. He said it would be nice to have a company like Sasol, a South African firm behind it, but that Montana also needs to get the owners of Montana coal and oil refineries and pipeline companies behind the effort.

Schweitzer agreed that it would probably take multiple companies to attract a coal-to-liquids plant for Montana. Defense Department officials have expressed interest in a long-term contact to buy the diesel fuel, although Schweitzer said the federal agency has said it won’t pay market price for the product.

“I don’t view the state of Montana has having a place as the developer or the general contractor,” the governor said. “I view my role as catalyst.” Petersen agreed, saying it’s more difficult to get a project done if the state government is involved.

“I think that the DOD (Department of Defense) is the right approach,” Petersen said. “Be the catalyst. Talk to the people.” Schweitzer has pitched the idea in the national media, and the CBS show “60 Minutes” featured Schweitzer promoting the idea.

Petersen praised Schweitzer for backing such projects, and said business executives are well aware of it.

“They know that it’s a state that will welcome these projects and that they have political support,” the PPL official said. “In a lot of states, you can’t get to see the governor.” Schweitzer said Montana has plenty of cheap fuel in terms of coal, some struggling communities that would welcome the jobs from this industry and a workforce that is 25 percent more productive than the average.

Petersen also suggested that Schweitzer promote the coal-to-liquids idea as a security issue for the United States.

Montana could be a big part of the solution in reducing carbon emissions, Schweitzer said.

“I’ll do whatever I can do to help.” Petersen pledged.

Afterward, Petersen said PPL has been advocates of clean-coal technology, and Schweitzer wants to take this process to the next step for coal-to-liquids plants in Montana.

“These projects are very large,” Petersen said, adding that even a small plant would cost more than $1 billion.

He said PPL, with its assets in Montana, could support opportunities such as those promoted by Schweitzer.