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Coal gaining ground as gas and oil prices soar: Alaska sees growing interest in state's bountiful resource.

Article Excerpt
As energy prices continue to increase, so does the need for finding alternative, affordable sources of fuel. While coal was once looked upon as a poor second to natural gas and oil, dwindling supplies, rising costs and a growing Asian market have brought renewed interest in mining the plentiful mineral.

"We're definitely seeing an awakening of the market," said Steve Denton, vice president, Business Development for Usibelli Coal Mine Inc. "Energy prices went through the roof about three years ago after being at a level that very few in the industry thought was sustainable. Once prices corrected to what they should be, coal was once again able to take its rightful place as a lower-cost fuel."

This new focus on coal has resulted in several companies expressing interest in establishing new coal mines in Alaska, which possesses roughly half of the nation's coal reserves. Companies are also exploring state-of-the-art technologies that will enable them to utilize coal in innovative ways, such as in coal-gasification plants and coal-to-liquids facilities.

LEADING THE WAY

As the only working coal mine in Alaska, Usibelli Coal Mine Inc. provides approximately 1.5 million tons of coal annually for domestic and export use. Of this, roughly 900,000 tons remain in Alaska and is used to supply six Interior Alaska power plants.

"Usibelli supplies coal to the University of Alaska Fairbanks, Aurora Energy in Fairbanks and the Golden Valley Electric Association," explained Bill Brophy, vice president, customer relations. "We also supply coal to Fort Wainwright, Eielson Air Force Base and Clear Air Force Station through...