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

Chris Wright, Secretary of the U.S. Department of Energy
Chris Wright, Secretary of the U.S. Department of Energy
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Chris Wright, Secretary of the U.S. Department of Energy
Chris Wright, Secretary of the U.S. Department of Energy

The U.S. Department of Energy (DOE) has finalized a $1.5 billion loan to Wabash Valley Resources, LLC, aimed at reviving a coal gasification plant in West Terre Haute, Indiana. The facility will be repurposed to produce 500,000 metric tons of anhydrous ammonia fertilizer annually using coal from a nearby Southern Indiana mine and petroleum coke as feedstock.

This project is expected to reduce the United States’ reliance on imported fertilizer, which currently comes from countries such as Canada, the Caribbean, the Middle East, and Russia. The move is intended to strengthen domestic supply chains and provide cost-competitive ammonia for farmers in the Eastern Corn Belt.

“For too long, America has been dependent on foreign sources of fertilizer,” said U.S. Energy Secretary Chris Wright. “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 DOE states that bringing the plant back online will create hundreds of jobs in the region while helping lower costs for both farmers and consumers. The financial support was provided under new guidance from the Loan Programs Office (LPO), following directives set by Secretary Wright.

According to DOE officials, this is the second loan closed under the Energy Dominance Financing Program established by recent legislation known as the Working Families Tax Cut or One Big Beautiful Bill Act.

The department says this action supports national security objectives by ensuring reliable access to domestically produced fertilizer and aligns with broader energy policy goals.

“Today’s announcement highlights DOE’s 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.”



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