Air Products and Chemicals has suspended its plans for a cogeneration facility in Middletown, Ohio, US, due to rising construction costs and delays in federal regulatory issues.

The project, which is described as the first-of-its-kind in North America, would have captured the waste gas from the blast furnace at AK Steel’s Middletown plant and turned it into steam and electricity to power the plant.

The Middletown cogeneration facility would have used combined-cycle gas turbine technology.

Air Products blamed the suspension on the slow growth in the US industrial economy causing the costs of constructing the project to grow over time.

AK Steel says it remains a potential project, and a great one for energy and the environment, while adding that it does not make economic sense to continue with the project in the current economic environment.

The project had received a draft air permit from the Ohio Environmental Protection Agency in March of this year.

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