Karthaus – The $650 million project that included the construction of a waste coal co-generation plant in Karthaus has died on the vine, according to Ray Savel, president of the Quehanna Industrial Development Corporation in Karthaus.

“What makes us so mad is the two years that we put into this project,” Savel stated.  Sithe Global Power company had invested nine years and  $49 million in the project.

Local television reports that claimed Sithe Global never applied for a government-backed loan were completely false, according to Savel.

“The company (Sithe Global Power) asked for a federally backed loan guarantee,” said Savel. “The project was $650 million and they were asking for a guarantee of at least $383  million. They did apply, but our Pennsylvania Senators Specter and Casey wouldn’t help because it was a coal-fired plant. I guess Obama doesn’t want any coal powered projects.”

Savel said the project is not completely dead, at least not yet.

“We’re sitting on a lot of natural gas,” he said. We’re thinking about a gas-fired plant. But even if we applied today it would be two years to get approvals. This is an important project.”

A frustrated Savel wondered aloud about the government’s efforts top create jobs.

“Where are these jobs?” he asked. “I don’t know if Washington really wants Americans to have jobs. This project was an American fuel that would create a product that China couldn’t take.”

He said that his organization was hoping to put pressure on Washington to reconsider the loan guarantee decision.