FutureGen Project Restructuring

Published Fri, 2008-05-09 14:08 Energy

The FutureGen project restructuring aims to demonstrate cutting-edge carbon capture and storage (CCS) technology at multiple commercial-scale Integrated Gasification Combined Cycle (IGCC) clean coal power plants. Under this strategy, the U.S. Department of Energy (DOE) will join industry in its efforts to build IGCC plants by providing funding for the addition of CCS technology to multiple plants that will be operational by 2015. This approach builds on technological research and development advancements in IGCC and CCS technology achieved over the past five years and is expected to at least double the amount of carbon dioxide sequestered compared to the concept announced in 2003.

This restructured approach allows DOE to maximize the role of private sector innovation, provide a ceiling on federal contributions, and accelerate the Administration’s goal of increasing the use of clean energy technologies to help meet the steadily growing demand for energy while also mitigating greenhouse gas emissions. Under this plan, DOE’s investment would provide funding for no more than the CCS component of the power plant – not the entire plant construction, compared with the FutureGen concept announced in 2003 where the federal government would incur 74% of rising costs. This would allow for commercial operation of IGCC power plants equipped with CCS technology to begin as soon as the plants are commissioned, between 2015 and 2016.

The FutureGen concept announced in 2003 planned the creation of a near-zero emissions, 275 MW power plant that produced hydrogen and electricity from coal on a smaller-than-commercial-scale, serving as a laboratory for technology development. Today’s announcement builds on advancements in technology made since 2003 and allows for electricity to be produced and greenhouse gas emissions sequestered at a rate and scale that offers tremendous potential for commercial viability. The restructured approach will focus on separating carbon dioxide (CO2) for CCS, and does not include hydrogen production, which the concept announced in 2003 included; however, hydrogen production for commercial use will remain an important component of DOE’s other energy initiatives. Also, engagement with the international community will remain an integral part of DOE’s efforts to advance CCS technology on a global scale.

The four sites – two in Illinois and two in Texas – evaluated in the Department’s Environmental Impact Statement issued in November 2007, including the site announced by the FutureGen Alliance in December 2007, Mattoon, IL, may be eligible to host a commercial-scale IGCC plant with CCS technology. The site analysis and characterization data at these sites may be applicable to future environmental analyses under this restructured approach. More than one site may be selected as a host for the commercial demonstration of CCS technology and DOE encourages applicants to include these four sites in their consideration for this restructured approach. Also, the FutureGen Alliance’s 13 member companies may compete with all the other applicants.

This restructured approach builds on the Administration’s investment of more than $2.5 billion in clean coal technology since 2001, which includes small-scale carbon sequestration projects and IGCC research that have advanced our understanding of the potential for clean coal technology. It is also consistent with a key recommendation of last year’s Massachusetts Institute of Technology Study, “The Future of Coal,” which indicated that “the main purpose of the [FutureGen] project should be to demonstrate commercial viability of coal-based power generation with CCS.” The Administration’s Clean Coal Power Initiative, as well as awards of $1.65 billion in clean coal tax incentives, and the use of loan guarantees, are other key components of DOE’s efforts to demonstrate the potential of advanced clean coal technologies to meet growing energy demand.

Environmental Impact Statement, FutureGen Project DOE conducted public meetings near each of the four alternative sites and reviewed and evaluated all oral and written comments received during the 45-day comment period.

Keep FutureGen at Mattoon

Submitted by Lawrence (not verified) on Fri, 2008-05-09 15:18.

Keep FutureGen at Mattoon Moving forward
The United States is facing an enormous challenge to address climate change, and the original FutureGen project at Mattoon, Ill. is a reasonable and necessary investment to advance near-zero emission coal-fueled power technology with carbon capture and sequestration (CCS).

Paul Thompson, chairman of the FutureGen Alliance, testified before the Senate Energy and Water Development Appropriations subcommittee and said that the Alliance is very mindful of the fact that federal dollars are a limited and valuable resource, but believes that FutureGen at Mattoon is a good investment for our nation. FutureGen at Mattoon offers the opportunity to advance many technologies faster and further than any other project in the world and it would be a huge mistake to move backward on the progress we have already made.

The Department of Energy (DOE) has cited higher costs and a changing marketplace as reasons for restructuring the FutureGen program. The increase in costs is due to inflation and not scope changes, which DOE acknowledged when they signed the Cooperative Agreement that governs the project in March 2007.

It is difficult to understand why these costs were acceptable in March 2007, but in January 2008 they formed the primary basis for their proposal to restructure the program. The Alliance is effectively managing costs, is contributing nearly $400 million toward the project and continues to reiterate its offer to the DOE to explore reasonable avenues to mitigate the federal government’s exposure, Thompson said.

Furthermore, the marketplace for clean coal power plants has changed, but not for the better. There are numerous proposed clean coal power plants, but many of them will not be built due to cost and regulatory uncertainty. In the last year, the number of projects has declined, so the market is not as stable as the DOE has suggested.

Given the lack of clarity in DOE’s restructured plan and the five years of delay that would result, early action to advance CCS technology through FutureGen at Mattoon is a necessary and wise national policy to address climate change. DOE’s proposal to restructure FutureGen has many business and technical issues and it’s under-funded. Making the necessary investments on the front-end to advance the technology is a smart national strategy.

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