DOE invests $1.5 billion to revive Indiana coal gasification fertilizer plant

By EPN Staff

The U.S. Department of Energy recently announced a $1.5 billion loan to a coal and ammonia fertilizer facility in West Terre Haute, Indiana. The loan will help Wabash Valley Resources (WVR) restart the plant after it went inactive in 2016 by repurposing energy infrastructure to produce domestic fertilizer.

When up and running, the facility is expected to produce 500,000 metric tons of anhydrous ammonia per year using coal from a nearby mine.

The investment is part of a national effort to revive domestic fertilizer production and bring down costs. WVR will be the third coal and ammonia fertilizer facility in the country, along with those in Kansas and North Dakota.

In response to the announcement, WVR COO Dan Williams said, “WVR is thrilled to be at the forefront of a new industrial era that harmonizes environmental, social, and economic benefits, and we cannot thank our partners enough.”

Why it matters

The Department of Energy (DOE) sees the project as an opportunity to strengthen U.S. energy security and corn belt economies. Secretary of Energy Chris Wright emphasized how the investment supports American workers and farmers.

“For too long, America has been dependent on foreign sources of fertilizer,” Wright said. “Under President Trump’s leadership, we are changing that by putting America first, relying on American coal, American workers, and American innovation to power our farms and feed our families.”

The DOE hopes that the project will help lower fertilizer costs by increasing domestic ammonia production. In addition to economic savings, it is expected to create 240 permanent jobs in Indiana and bolster the coal industry, one of the administration’s top initiatives.

How it works

The process begins with coal gasification, a method that converts solid coal into gas. Steam and oxygen are injected into the bottom of coal beds at around 2,200°F. As the gases rise, the coal’s molecular bonds break apart, releasing compounds of carbon, hydrogen, and other elements. These are then cooled and purified, producing a clean gas stream that forms the basis for ammonia and methane production. 

Once the gasification process is complete, the ammonia produced is converted into anhydrous ammonia, which is a crucial component of fertilizer. Both the Indiana and the Kansas facilities make fertilizer at the plant as well. 

The use of carbon capture and storage (CCS) technology to trap emissions means the process is far cleaner than traditional coal-based production.