DETROIT – DTE Energy on Tuesday said it had shut down production at all nine synthetic fuel facilities it operates because of volatility in oil prices and the lack of federal legislation that would have provided the company with what it called certainty for production economics this year.
DTE Energy holds a majority interest in two of the nine synthetic fuel
production facilities and minority interests in the remaining seven
facilities. The company has produced about 8 million tons of synfuels so far in
2006.
Synthetic fuel facilities chemically change coal, including
waste and marginal coal, into a synthetic fuel as determined under
applicable Internal Revenue Service rules. The production and sale of
synthetic fuel produced at these facilities generates production tax
credits under the Internal Revenue Code.
Synthetic fuel production may resume, depending on various factors,
including a reduction in oil prices or the enactment of potential federal
legislation. DTE Energy retains production flexibility that could allow it
to make up lost production during the remainder of 2006 if the current
shutdown remains limited.
