KY agency approves $550M to attract coal plant

FRANKFORT, Ky. -- A state agency has given preliminary approval to $550 million in incentives to entice a Louisville company to build its new coal plant in western Kentucky.

The $7.6 billion plant in McCracken County would convert coal to diesel and other liquid fuels.

The Kentucky Economic Development Finance Authority approved the incentives package Thursday.

Clean Coal Power Operations of Louisville is also considering sites in Missouri and Illinois, The Paducah Sun reported on its Web site Friday.

Terry Black, chief executive officer of Clean Coal, called Kentucky's proposal a "very generous offer."

Gov. Steve Beshear said Thursday that the project is a high priority for his administration.

Black and Chris Bechtler, controller for Clean Coal, were discussing specific details for building the plant in Paducah.

It would be built in four phases over five years. At its peak, construction would require about 1,500 workers. Black says the plant would produce about 40,000 barrels of fuel daily, including low-sulfur diesel, naphtha and other petroleum-based products.