When the Indiana Gasification (IG) plant was proposed for Rockport by the Mitch Daniels administration in November 2006, the price of natural gas was on the rise at around $9 per million BTUs (mmbtu). Suddenly taking coal's hydrocarbons and converting them to usable "syngas" (synthetic gas) seemed to make sense, at least until you got to the details.
That is, presumably, why the legislature passed a law telling the state's gas utilities that they had to negotiate 30-year contracts with IG on a "take-or-pay" basis that forced Indiana ratepayers to use its syngas no matter what the cost.
Then, while negotiations were still taking place, IG trotted before the Indiana Utility Regulatory Commission (IURC) with its proposal. Sadly for them, the utilities soon discovered that even with prices for natural gas on the rise, the required price for syngas was just too high to be competitive with even volatile natural gas, which by early 2008 had risen to $13-plus.



