SOLDOTNA - Agrium announced it will not be moving forward with coal gasification for its Nikiski plant on the Kenai Peninsula.
Agrium's Lisa Parker said that escalating equipment and construction costs, the downturn in the economy and increased interest rates made the project more difficult.
A decision on the plant's future will be announced later.
Agrium will not be taking the plant down at this time, she said.
The remaining employees at the plant will have jobs until June.
After that, Parker said there would probably be only four or five employees finishing Agrium's environmental work at the facility.
Last fall, Agrium announced that it was no longer going to be producing urea and ammonia at the Nikiski facility. At that time, the staff was reduced to only those working on the potential for coal gasification.
Parker said half of the workers who were laid off last fall at Agrium have found other employment.