Energy Department approves $1.5 billion loan for Indiana coal-based fertilizer plant

Chris Wright, Secretary of the U.S. Department of Energy
Chris Wright, Secretary of the U.S. Department of Energy - U.S. Department of Energy
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The U.S. Department of Energy (DOE) has finalized a $1.5 billion loan to Wabash Valley Resources, LLC, supporting the restart and conversion of a coal gasification plant in West Terre Haute, Indiana. The facility will use coal from a local Southern Indiana mine and petroleum coke to produce an estimated 500,000 metric tons of anhydrous ammonia fertilizer annually.

U.S. Secretary of Energy Chris Wright stated, “For too long, America has been dependent on foreign sources of fertilizer. Under President Trump’s leadership, we are changing that by putting America first, relying on American coal, American workers, and American innovation to power our farms and feed our families.”

The project aims to address reliance on imported fertilizer from regions such as Canada, the Caribbean, the Middle East, and Russia by producing ammonia domestically for farmers in the Eastern Corn Belt. According to DOE officials, this move is expected to reinforce domestic supply chains and lower costs for both farmers and consumers while also enhancing national food security.

The loan was issued under new guidance from the Loan Programs Office (LPO), directed by Secretary Wright. It is part of the Energy Dominance Financing (EDF) Program established through recent federal legislation known as the Working Families Tax Cut or One Big Beautiful Bill Act.

“The loan… delivers on the Trump administration’s promise to responsibly steward taxpayer dollars and unleash American energy dominance,” according to DOE materials. The agency also emphasized its ongoing commitment “to achieving President Trump’s national security and energy dominance goals by securing domestic fertilizer supply for farmers in the Corn Belt and ensuring the American people’s access to reliable, abundant, and affordable energy.”

The repurposed plant is projected to create hundreds of jobs within Indiana’s coal community.



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