Kenai Blue Sky Project

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Agrium proposed to use coal gasification to power an existing fertilizer plant, in order to avoid that plant shutting down in 2007 due to declining Cook Inlet natural gas supplies. In addition to a coal gasification plant, an adjacent conventional coal burning plant would be built. Agrium's fertilizer plant is already a major source of greenhouse emissions. Agrium is currently engineering the project with hopes to begin construction in 2008.[1]

Media coverage and exposure have been minimal.

On March 13, 2008, the company announced that it was cancelling the project due to rising construction costs and a worsening economy.[2]

Project Details

Sponsor: Agrium US
Location: Kenai (Nikiski)
Capacity: 350 MW gasification + 100-200 MW coal burning
Projected in service: 2011
Status: Cancelled



  1. "Agrium and Southcentral Communities to Benefit from Kenai Blue Sky Project", Alaska Business Monthly, January 1, 2007.
  2. Tim Bradner, Agrium blames construction costs, financing environment for cancellation of coal gasification project for Kenai fertilizer plant, Alaska Journal of Commerce, March 14, 2008.

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