A new coal mine could open next year near South Heart to supply lignite for a plant that would dry and harden it into high-energy briquettes.

The $11 million plant would be part of an energy complex southwest of the community, using coal reserves owned by Great Northern Power Development.

Great Northern plans to mine coal and liquefy it to produce a synthetic natural gas, using newer technology than is in use at the Dakota Gasification Co. plant near Beulah.

The company had said it would wait three years to open the mine for its proposed syn-gas plant, which is still in development.

Now, the mine may go on a fast track with plans by Australia-based GTL Energy to build a commercial-scale demonstration plant nearby to improve lignite coal so it burns cleaner and hotter in a process called "beneficiation."

Great Northern spokesman Rich Voss said Great Northern expects ask the Public Service Commission in August for a permit to mine 300,000 tons of coal annually for GTL Energy. It will expand the permit when it's ready to mine 4.8 million tons annually for synthetic gas.

GTL Energy chief executive officer Robert French said his company will seek zoning in July, working with the Stark County Planning and Zoning Commission and county commission. The plant also will need state permits prior to construction.

Mary Hodell is a member of Neighbors United, a group formed in opposition to Great Northern's plan for development in their farm neighborhood,

Hodell says the group wasn't aware of the new project. She says she isn't familiar with beneficiation, but it's "still taking coal and displacing well water."

French said his company is an independent technology developer that tests coals from around the world.

"We have no interest in the (Great Northern) gas plant, other than trying to prove the technology to improve emissions and efficiency at their plant," he said.

French said his company's beneficiation process employs low heat and compaction. The process generates virtually no emissions and the waste water squeezed from the lignite ends up cleaner than groundwater, he said.

French said the plant also could supply coal briquettes for private and industrial stoker boilers. He figures there's about a 2-million-ton stoker market in North Dakota.

GTL Energy has been testing coals at a research facility in Colorado and the South Heart plant will allow it to install larger specialized equipment of its own.

The technology to dewater and compact lignite could be applied to gasification and power plants.

Great Northern plans to dry and harden coal to make syn-gas, but Voss said it will construct its own beneficiation plant, not use the one GTL Energy plans to build.

"Ours would be much larger," Voss said.

Along with getting ready to file a mine permit application for GTL Energy and its own eventual use, Great Northern is out surveying water wells in and around the 17-section site where the coal mine would be located.

(Reach reporter Lauren Donovan at 888-303-5511 or lauren@westriv.com.)