Baard holds press conference

EAST LIVERPOOL - Baard Energy Business Development Vice President Steve Dopuch and CEO and President John Baardson held a press conference at the Columbiana County Port Authority on Thursday evening.

Baardson was available via conference call, as he was attending to financial matters in Washington state.

"Much has happened over the past 24 months and we feel a strong need to keep the local community up-to-date," Baardson stated in the press release.

Dopuch agreed at the conference, stating that "since we're here, we decided to make ourselves available to the press."

Dopuch was in the area on behalf of Baardson to speak at the Wellsville Area Chamber of Commerce's Citizen of the Year dinner.

Baardson laid out a rough plan for the future of the Ohio River Clean Fuels coal-to-liquids plant.

Baardson stated that the first step, now that the company has been granted its necessary permits, is to work on designing the layout and necessary equipment for the plant.

"In the May to June time frame we should be able to start construction," Baardson said.

Before Baard can start constructing the coal-to-liquids plant, it must prepare the land.

Baardson said that most of the preparatory steps were taken during the permitting process, and that now it is time to look at how to clear the land and clear debris to set up the building site.

"We have to make a tabletop on the plateau area of the hill," Baardson said.

According to Baardson, the plant will be placed on two separate levels of land.

The plant's cooling towers and gasifiers will be located at the upper level of the site, and the raw materials will sit on the lower level.

This configuration, Baardson stated, is just another part of the plant's continuing effort to remain "green."

Dopuch stated that some geotechnical work may need to be done before leveling the land, so that the civil engineering side of the company will be better able to plan.

Dopuch also stated that approximately 20 million cubic feet of rock and dirt will be moved.

The displaced land will remain at the building site, Dopuch said.

According to Baardson, land preparation and engineering design should be completed by summer 2009, at which point the company will begin ordering its large equipment.

Baardson stated that that process will take place up to fall 2009.

"That's critical because a lot of that equipment takes a year to come in," Baardson said.

In 2010, Baardson stated that the company expects to have construction completed.

In 2012, the plant will be operational, but will be undergoing final equipment testing.

"By 2013 we will be fully operational," Baardson said.

The difference between 2012 and 2013, Dopuch said, is the final testing.

"Only after we go through the prove-out of the plant will we become commercially operational," he said.

Dopuch stated that the plant will start commercial operation in three phases.

"The first phase of commercial operation should commence in 2013 with the first two gasifiers, followed by the next two, and then the final two in 12-18 month increments," Dopuch said.

The three-phase startup process allows for the plant to begin making product, and therefore profit, as soon as possible.

"The process allows for different people to work on different parts of the project at the same time," Baardson said.

Dopuch stated that the company expects to have 3-4,000 construction workers on the building site daily, "and that's not including the thousands of others behind the scenes designing and working on building equipment."

For the plant's proposed 53,000 barrel-a-day production, which is the amount it can produce at full operational levels, there will be 150,000 employees, Dopuch said.

As for the current economic recession, specifically the falling price of oil, Baardson stated that the company is not concerned.

"We care about what the price of oil is in 2013," he said. "We don't care what the price of oil is now."

Dopuch stated that the futures market in crude oil runs between $80-100 a barrel for 2013.

"We're perfectly comfortable," he said. "We look out in the future and see that oil is going to be needed."

Economy aside, the demand for gasoline is slated to decrease in the coming years as electric cars and other energy-saving vehicles become more common on the market, Columbiana County Port Authority CEO Tracy Drake said.

Those changes, Dopuch said, will not have a significant effect on the demand for fuel, because ORCF will produce diesel for the trucking and rail industries as well as jet fuel.

Baard Energy's confidence in the demand for liquid fuels in the future has allowed the company to avoid cutbacks in its budget.

"We have not changed a thing," Baardson said. "Everything's on track, and the reason for that is that this is a long-term project and we have a lot of people anxious to buy the product."