June 14, 2008

Malmstrom Coal-to-liquids proposal deadline reached

By JO DEE BLACK
Tribune Business Editor

The deadline for developers to pitch proposals for a coal-to-liquid fuel plant at Malmstrom Air Force Base has passed, but the Air Force agency in charge of evaluating the offers isn't releasing much information about the number or names of those interested.

Until and if an offer is selected, all the information related to the request for qualification is sealed, a media release from the Air Force Real Property Agency in Texas states. The Air Force expects to make a public announcement about the developer selection on Dec. 31.

Air Force officials announced last fall that they were willing to offer some 700 acres of under-used Malmstrom land to a developer who would finance, build and operate a coal-to-liquid fuel plant capable of producing 20,000 to 30,000 barrels of fuel a day. Montana's U.S. senators said it could take 1,000 construction workers to build such a plant and at least 300 to 400 people to operate it.

Once selected, the developer would enter into exclusive negotiations with the Air Force to create a detailed proposal and plan for the development of a coal-to-liquids plant. Once a lease is signed, the developer would move forward with the completion of planning, permitting, design and construction of the plant.

The Air Force is proposing the fuel plant and other energy projects to help reduce the United States' dependence on foreign energy.

Great Falls Development Authority President Brett Doney said that as energy security becomes more of a national issue, the viability of a coal-to-liquids fuel plant at Malmstrom increases.

"Great Falls is in a perfect spot for this and, from an economic development standpoint, it would be a win for the region and Montana," he said. "It could also spur other, similar development."