An American Indian tribe has struck a 50-year deal with an Australian company to build a $7bn (£3.6bn) plant that would convert coal into liquid fuel.
The development between the Crow tribe of
One of the first projects of its kind in the
Various other coal-to-fuel projects are planned for states, including
Mining-free zone
Construction will begin in several years and will use coal from a mine that is yet to be developed on the Indians’ reservation.
The tribe has 12,000 members and the Crow will pocket up to 50% of the profits from the plant after investors make up their costs.
It is estimated the tribe could receive up to $1bn a year – a major economic boost given its annual budget is currently $26m.
The Crow’s reservation is located above some of the
To date, the area has remained largely free of mining.
Self-sufficiency
Both the tribe and Australian-American Energy have anticipated opposition from environmental groups, and have said the Many Stars plant will be able to capture 95% of the carbon dioxide it emits.
But Crow chairman Carl Venne said this was a chance for the community to escape poverty.
"People have to realise this is one of the poorest counties in the whole nation," said Venne.
"It means we will become self-sufficient as a tribe," he added.
The
Australia-American Energy is a subsidiary of Australian Energy.
Australian Energy chief executive, Allan Blood, has already embarked on two similar projects in