Proposed $4B coal-to-liquid plant in ND receives state aid extension

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A proposed coal-to-liquid fuel plant in western North Dakota has received a sixth extension of state aid. The North Dakota Industrial Commission (NDIC) approved the extension.

North American Coal Corp. said the plant awaits favorable coal legislation and a clear U.S. energy policy in order for the $4 billion project to move forward.

American Lignite Energy LLC was formed in 2007 by North American Coal and Headwaters Inc. to oversee construction and operation of the proposed plant, according to the Associated Press.

In 2007, the NDIC allotted up to $10 million from coal tax collection to decide on the potential of the project.

In 2013, North American Coal spent about $35,000 to study the project, and $1.38 million overall.

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