The state Economic Development Authority passed a resolution indicating its willingness to put the state's name on a $3 billion bond issue to help TransGas Development Systems build a coal-to-gasoline plant in Mingo County.
If TransGas follows through and finds buyers for its bonds, it will use company revenues to pay the principal and interest. The state would not be financially liable if TransGas were to encounter financial difficulties.
David Warner, executive director of the West Virginia Development Authority, said there is no limit to the amount of taxable bonds the authority can authorize in a year.
Randall Harris, a TransGas executive, said it is estimated the project will cost a total of about $4 billion. He said a substantial portion of the financing would come from private investors.
If built, the plant would be the largest single privately financed project in West Virginia history.
In other action during Thursday's monthly meeting at NorthGate Business Park, the authority:
n Authorized the issuance of $66.6 million in revenue bonds so Morgantown Energy Associates, which owns a power plant in downtown Morgantown, can refinance the project.
n Agreed to allow Scott Aluminum Corp. to assume a $3.2 million loan the authority had previously made to Aluminum Services Limited Liability Co. Scott Aluminum is headquartered in Chagrin Falls, Ohio. The company is planning to buy the assets of Aluminum Services. Several years ago Aluminum Services bought the assets of Precision Coil in Clarksburg.
n Approved a $248,700 increase in the $1 million loan it previously made to Summit Point Ventures in Jefferson County. Warner said Summit Point is expanding.
Contact writer George Hohmann at business@ dailymail.com or 304-348-4836.
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