Energy
Northwest Kentucky is America’s new Energy Center. Few areas can offer the blend of natural resources (coal, agriculture, biomass), infrastructure resources (3 interstate gas pipelines, access points on the grid, transportation by rail, river and road), and human resources (dozens of energy-related companies headquartered or with major presence, the West Kentucky Regional Energy Advisory Team, and nearby engineering schools) to lead the nation in the quest for energy independence.
See for yourself how Northwest Kentucky is ideally situated for Energy operations:
Incentives for Energy Independence Act
Kentucky’s aggressive Incentives for Energy Independence Act (IEIA) provides the support and assistance energy projects need to become a reality in Northwest Kentucky.
Eligible companies are those that construct, retrofit, or upgrade a facility to:
- Increase the production and sale of alternative transportation fuels.
- Increase the production and sale of synthetic natural gas, chemicals, chemical feed stocks, or liquid fuels, from coal, biomass resources, or waste coal through a gasification process.
- Generate electricity for sale through alternative methods such as solar power, wind power, biomass resources, landfill methane gas, hydropower, or other renewable resources.
Eligible projects can apply to receive incentives available for up to 25 years, up to a maximum of 50% of the capital investment, via:
- Sales and Use Tax refunds up to 100% of tax paid on tangible personal property made to construct, retrofit or upgrade a facility.
- Severance Tax incentives up to 80% of taxes paid on the purchase or severance of coal.
- Tax Credits up to 100% of tax paid on corporate income or Limited Liability Entity Tax arising from the project.
- Wage Assessment incentives up to 4% of gross wages of each employee.
Additionally, Advanced Disbursement of post construction incentives using a formula based on percentage of labor component in construction and the utilization of Kentucky residents in construction phase may be available.
The Northwest Kentucky Advantage
Big Rivers & HMPL operate electric facilities in the area and an IGCC (clean coal) merchant plant is scheduled to begin construction Spring 2009.
Kentucky is the third largest coal producing state and NWKY has 21.8 billon tons in coal reserves.
Kentucky has a rich agricultural heritage and NWKY produces over half of the state’s soybeans and corn as well as 60% of its wheat crop.
NWKY is home to a soybean based Biodiesel Facility in Union County and the nation’s third largest soybean based Biodiesel Facility in nearby Daviess County.
The Commonwealth of Kentucky has identified eleven sites in this region that are well suited for coal-to-gas/coal-to-liquid projects.
Location & Transportation Advantages
Highway
Northwest Kentucky is encircled by I-64 on the North, I-65 on the East, I-24 on the South and I-57 on the West. I-69, on its way from Toronto to Houston, passes through the center of this circle in Henderson, KY, providing fast, efficient access from Northwest Kentucky to any direction in North America.
In addition, US 41 runs north to south through Northwest KY, and both US 60 and the Audubon Parkway run east to west. These excellent highways provide superior connectivity within the region and alternate quick routes to the Interstate Highways.
Rail
A primary north-south line for CSX runs through Northwest Kentucky. Several industrial parks have active rail access.
Water
The Henderson Riverport is a full-port, intermodal facility serving local, national and international industry. Located at mile 808 on the Ohio River and twenty miles from the confluence with the Green River, the Henderson County Riverport is one of the most active river ports in the Midwest and is a pivotal point for all river shipping in the Midwest. In addition to its geographical benefit, the port is a customs port-of-entry for the receiving and shipping of foreign goods and maintains FTZ status.
Low Cost of Energy
Henderson Municipal Power offers the lowest electric power rates in the U.S. Kenergy is the largest electric cooperative in the U.S. Both provide generation and distribution. In fact, Northwest Kentucky boasts multiple local power generation sources along the river. Kentucky Utilities, part of the PPL Corporation , is an award-winning private utility recognized for low cost power and high reliability.
Natural gas is available at all major sites in the area. An ample water supply is readily available across northwest Kentucky.
For an overview of energy resources and information on suppliers see our Utilities section.
Energy Companies In NWKY
Big Rivers Electric Co. (Henderson) - power generator
Kenergy (Henderson) - nation’s largest electric cooperative
Kentucky Utilities (division of E.ON, has large presence in the region)
Orbit Gas (Henderson)
Patriot Coal (Henderson)
Henderson Muncipal Power (Henderson)
Peabody Midwest (Evansville)
Vectren (Evansville) - publicly traded power company
Atmos (Signicant presence across region)
Texas Gas Transmission (Owensboro)
Southern Star (Owensboro)