Obstacles continue in the construction of a new coal-fired power plant in southwest Kansas after a federal court in Washington dismissed an appeal by Sunflower Electric.

Kansas granted a permit to Sunflower to build the new plant in 2010, after the Republican-controlled Legislature ratified an agreement between then Democratic Gov. Mark Parkinson and Sunflower Electric Power Corporation.

After 3 years, Sunflower is still fighting to build the 895-megawatt plant outside Holcomb, KS. An appeal to overturn a federal judges ruling that put the $2.8 billion project on hold was rejected Tuesday by a three-judge panel of the U.S. Court of Appeals for the District of Columbia.

Last year U.S District Judge Emmett Sullivan ordered a complete environmental study before granting any approvals to Sunflower for the project. Sullivan ordered the Rural Utilities Service, which is part of the U.S. Department of Agriculture to complete the study. The federal agency must sign off on decisions about the plant because it provided past financial support to Sunflower and oversaw corporate reorganizations.

Sunflower spokeswoman Cindy Hertel said the company is still reviewing the decision. Because Emmett’s decision directing the Rural Utilities Service to do a study didn’t amount to a final order, the appeals-court panel said it didn’t have the jurisdiction under federal law to hear an appeal.

Part of the new capacity of the power corporation would be reserved for a Sunflower partner, Tri-State Generation and Transmission Association Inc., of Westminster, Colorado. Supporters of the project have said exporting power would be beneficial to the state economy due to the exporting of product but environmentalists view the plant as unnecessary for meeting Kansans’ power needs

Sunflower supplies electricity for about 400,000 Kansans and its new plant would have enough capacity to meet the peak demands of 448,000 households.