Status of the Great Plains Coal Gasification Project--August 1, 1985
RCED-86-36, Dec 24, 1985
GAO reported on the status of the Great Plains Coal Gasification Project and the project sponsors' default on a $1.54 billion federally guaranteed loan.
GAO found that, although the Synthetic Fuels Corporation approved a loan agreement for up to $720 million in price guarantees over a 10-year period subject to restructuring the payments on a Department of Energy (DOE) guaranteed loan, DOE would not approve the proposed agreement because oil and natural gas prices were not high enough to make the project economical. However, GAO found that the project: (1) progressed well; (2) has met the production performance criteria for commercial operations; (3) was completed on time and within cost estimates; (4) has produced and sold $153 million worth of synthetic gas; (5) has had some technical problems; and (6) needs plant modifications to meet design specifications and environmental control standards.