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Steel | Trade Contracting

May 23, 2008

Construction begins on US$290 million Illinois coke-making plant

GRANITE CITY, ILL.

Construction began recently on a coke-making plant that will provide fuel and steam to an adjacent steel foundry in a $570-million venture.

Gateway Energy and Coke Co., a unit of Philadelphia-based Sunoco Inc., will build and run the US$290 million plant, which is expected to supply as much as 650,000 tons of coke a year that will be sold to a nearby United States Steel Corp. plant in this St. Louis suburb. Construction of the coke plant is expected to take 18 months.

Coke, a fuel used to superheat ovens for steel-making, is produced when coal is “cooked” at high temperatures to remove any moisture or gases.

A byproduct of the coke-making will be used by a US$280 million cogeneration site U.S. Steel plans to build and run, converting the gas into electricity that will power the steel mill.

Associated Press

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