(Kenai) - Kenai ammonia and urea producer, Agrium is set to conduct a feasibility study with industry partners to explore the possibility of coal gasification at their Kenai plant.

The study will look at the possibility of using local low-sulfur coal from the Beluga Coal field in the Cook Inlet for coal gasification to produce feedstock for ammonia and urea production. Project "Blue Sky" could create jobs at Agrium, the coal gasification plant and the mine.

Representative Mike Chenault (R-Nikiski) was encouraged by the prospect of the project. "Hopefully, if the study proves fruitful, this could bring a large number of jobs to our area. With the possibility of new technology comes high paying jobs for qualified members of the community."

"I'm very excited about the possibility of an alternative source of supply for Agrium. It is important to all of us on the Kenai Peninsula to keep our industrial base and this would help do just that," said Representative Paul Seaton (R-Homer).

Agrium is conducting the feasibility study with Usibelli Coal Mine and engineering firms Black & Veatch and Uhde.

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