July 12, 2024 -  A high-profile story in the Wall Street Journal raised serious questions about the viability of an Omnis Fuel Technologies plan to take over the Pleasants Power Station and generate energy using a hydrogen byproduct of the company’s graphite production operations.

The question explored by the article was whether the approach, which could be cutting edge, is actually financially viable. Omnis is developing technologies that could be subject to benefits under the federal Inflation Reduction Act, like hydrogen and carbon sequestration.

Pleasants is a 1300 megawatt two-unit coal power plant located on the Ohio River near Belmont, Pleasants County. About 150 people work at the plant, which began operations in 1979.

It has been in and out of financial peril in recent years, with state officials stepping in to provide a tax break and then trying to steer the plant toward new ownership, which wound up being Omnis.

The plant was set for mothballing last year when Omnis stepped in and the plant back up, promising an investment of $800 million in West Virginia for a project estimated to result in 600 jobs.

Gov. Jim Justice expressed excitement over the fire-up during remarks last year before business leaders gathering at The Greenbrier resort. While Justice appeared on stage, a big video screen showed the puffs from the power plant up against blue sky.

“Pleasants Power Plant — a power plant, a coal-fired power plant — is taking new life, and it’s taking new life right in front of our eyes,” Justice told the crowd.

Today, Justice agreed with that assessment, saying his administration had supported retention of the jobs at the plant and the use of coal, a prominent West Virginia energy resource. When asked during a news briefing by reporter Mark Curtis of WOWK television whether he has concerns based on the Wall Street Journal reporting, Justice acknowledged the need to keep a critical eye on the plant’s development.

“They buy coal from West Virginians and absolutely they keep 200 folks plus employed in Pleasants County. You keep the plant running and you make electricity,” Justice said.

Justice described the state’s direct involvement as a $50 million forgivable loan. “They have the obligation as far as repayment, and we’ll see.”

Regarding the technology at the heart of the Omnis plan, the governor said “that was just a bonus to me. I have told the powers that be that we’re involved. I’ve said beware and watch 15,000 times. With all that being said, to me the security we have behind all this is rock solid. Really and truly, if we could be on the cutting edge to bringing the hydrogen era right up to speed in this nation and world it would be great.

“But from my standpoint, what did the mathematics need to be centered around? It needed to be centered around the fact that we were going to keep people in coal jobs, we were going to buy coal, we were going to make electricity and we were going to sell electricity. And we were going to continue to employ 200 folks in Pleasants County.”

He concluded, “So I think we’ve done the right thing and time will tell about whether or not the hydrogen situation works out and the science works out. I’ve tried to be, not necessarily skeptical, but I don’t believe in somebody coming in and trying to sell you a pie in the sky. That’s why we have all these safeguards and backups.”

In 2020, the company hired Michelle Christian, who had been involved with economic development in West Virginia and the surrounding region in a range of capacities, as vice president of government relations.

Christian is no longer with Omnis. This past March, she filed a federal lawsuit against Omnis over several aspects of her work experience, detailing clashes over whether the company was presenting realistic information to government officials and the public.

Lawyers for Omnis have filed a motion to dismiss the case.

Christian’s lawsuit contends that between June and August 2023, she began asking company leader Simon Hodson questions about the network of companies surrounding Omnis “and how certain things did not make sense financially.”

The filing states, “Plaintiff was concerned about Hodson and the Defendant Omnis companies making false representations to state and federal officials in order to receive funds and assistance
in the form of government loans and grants.

“Plaintiff’s concerns peaked when she realized that Hodson and the Omnis companies had made so many misrepresentations to government officials that it would be extremely difficult for Plaintiff to support the claims without further understanding so she continued to ask Hodson questions.”

The lawsuit indicates the conflict reached a climax last August 30 when Christian “finally confronted Hodson about the truthfulness of statements he was making to state and federal government officials, openly objecting to his ongoing efforts to defraud government officials for investment funds.

“This was not an off handed conversation, but lasted several hours; Plaintiff accused Hodson of lying to the Federal Department of Energy and the West Virginia Government, and insisted she would not lie on his behalf.”

That day, August 30, was the same day West Virginia officials announced Omnis would be powering back up the Pleasants plant.

By Sept. 9, according to the lawsuit, Christian was no longer working at Omnis.