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Title: Crow Tribe of Indians: synfuels feasibility study. Volume III. Part A: financial analysis. Part B: legal analysis. [Crow Synfuels Project]

Technical Report ·
OSTI ID:6682019

The Crow Synfuels Project, one of the largest synthetic fuels projects currently active, is projected to cost $3.15 billion in construction costs with capitalized interest of $518 million. Total financing requirements will be $3.66 billion including inflation. The economics and risks of the Synfuels Project are such that the Project needs both loan guarantees and price guarantees from the Synthetic Fuels Corporation in order to be viable. A price guarantee at a 1982 price of $6.75 plus escalation would yield a 27% rate of return under the assumptions used in this study. With this level of price guarantee, the Project exceeds the $3 billion funding limit of the Synthetic Fuels Corporation. Therefore, the Project as proposed is not feasible unless private non-guaranteed financing is available or if it is financed with substantially greater equity than the 25% contemplated. Without increased private participation in the Project, only a substantially smaller project can meet the limits of the Synthetic Fuels Corporation guarantees. The Synthetic Fuels Corporation currently has 14.9 billion dollars in authority and cannot fund numerous large projects. The Board of Directors has decided to seek a diversity of projects. This Project is very similar to the Great Plains Project. As a result it might be difficult to receive government assistance for the Project even at a smaller scale.However, the Crow Tribe has one of the premier sites for a synfuels project. A smaller project could be accomplished under the existing government program. The Crow Tribe should take those steps necessary to attract other, smaller projects to this site.

Research Organization:
Fluor Engineers and Constructors, Inc., Irvine, CA (USA); Crow Tribe of Indians, Washington, DC (USA)
DOE Contract Number:
FG01-81RA50351
OSTI ID:
6682019
Report Number(s):
DOE/RA/50351-1300-Vol.3; ON: DE83001362
Resource Relation:
Other Information: Portions of document are illegible
Country of Publication:
United States
Language:
English