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SunCoke Energy has received preliminary approval to build a $340 million coke plant in Ohio, which would provide coke to AK Steel’s Middletown Works. Ohio state regulators issued a final air pollution control permit on Tuesday, containing the most stringent requirements in the country for coke-making facilities and setting a new standard for similar coke-making facilities.

The proposed plant would also generate electricity from steam created in the coke-making process, which would be sold to AK Steel as well. Officials from AK Steel said the new plant would help insure the viability of its Middletown Works. If the plant is built, AK Steel will have a 20-year supply agreement with SunCoke.