Future of FutureGen Clean Coal Plant Looks Dim

Energy Secretary Samuel Bodman informed the Illinois Congressional Delegation at a meeting in Washington on Tuesday that the Energy Department plans to disband the FutureGen Alliance and is planning to take the clean coal initiative in another direction.

"In 25 years on Capitol Hill, I have never witnessed such a cruel deception," said U.S. Senator Dick Durbin. "For five years, the Department of Energy has urged our state and others to pursue, at great expense and sacrifice, this critically important energy project. When the City of Mattoon, Illinois was chosen over possible locations in Texas, the Secretary of Energy set out to kill FutureGen."

"After our meeting today it is clear that Secretary of Energy Sam Bodman has misled the people of Illinois, creating false hope in a FutureGen project which has no intention of funding or supporting," Durbin said Tuesday.

FutureGen is a public-private partnership between the U.S. Energy Department and the FutureGen Industrial Alliance, Inc, a non-profit consortium of 12 American and international energy companies.

After an almost five-year long site review process, the FutureGen Alliance announced on December 18, 2007 that Mattoon, Illinois would be the site of the first low emissions coal project in the United States. Mattoon was chosen over sites in Tuscola, Illinois; Jewett, Texas; and Odessa, Texas.

Following the announcement, the Department of Energy did not immediately approve the Mattoon site, citing high costs.

FutureGen Alliance chief executive Michael Mudd today said FutureGen is not dead.

"The Alliance, which is an independent non-profit entity, has proposed new solutions to address cost concerns, is committed to its cooperative agreement with DOE, and will continue to work with Congress, the State of Illinois, foreign governments, and other stakeholders to keep FutureGen moving ahead at Mattoon, Illinois," said Mudd.

The Alliance remains committed to keeping FutureGen on track," he said. "We owe it to the people of Illinois, to the Alliance members who have contributed significant funds and resources to bring the project to this stage and to society which depends on technology to provide clean, affordable and secure energy."

The 275 megawatt prototype FutureGen plant was planned to integrate advanced technologies for coal gasification, electricity production, emissions control, capture and permanent storage of the greenhouse gas carbon dioxide, and hydrogen production at a commercial scale.

"The final decision must be made by President [George W.] Bush who announced FutureGen in 2003 and even referred to this critical technology research in his State of the Union speech last night." said Durbin.

"To say I am extremely disappointed in the outcome of this meeting is an understatement," said Illinois Congressman Tim Johnson. "But let me stress that this battle is not over. I have requested a meeting with the White House and have commitments from the Congressional Delegation to continue this fight through the legislative process."

"Secretary Bodman's response this morning was a slap in the face," said Johnson. "This is the worst form of bureaucratic arrogance and insensitivity that I have seen in all my years in government. One can only speculate where we'd be today if a Texas site had been chosen."

Illinois Governor Rod Blagojevich accused the energy secretary of deceiving the people of Illinois.

An artist's concept of the FutureGen power plant. (Image courtesy DOE)

"Secretary Samuel Bodman is not only jeopardizing the benefits FutureGen promises to deliver, but he deceived the people of East Central Illinois who spent time and resources competing for the project," said the governor. "We’re not giving up the fight to make FutureGen a reality in Illinois."

"On November 30, 2007, the Department of Energy sent a letter reaffirming that the project was moving forward as planned. Only after it became clear that an Illinois site would be chosen over a Texas site, the department suggested the project be delayed and now today, that it be dismantled," the governor said.

"Just last night during his State of the Union Address, President Bush said that environmentally responsible energy is essential to keeping our economy growing, and that his budget provides strong funding for leading-edge technology, including clean coal," Blagojevich said.

"Secretary Bodman’s decision to reverse course on the most important clean coal project to date represents a striking contradiction to the president’s comments. I urge President Bush, who initiated FutureGen in 2003, to stand by the project and move it forward," said the governor.

Blagojevich is asking that all the presidential hopefuls, including U.S. Senator from Illinois Barack Obama, to let Illinois voters know where they stand before voters cast their ballots on February 5.

Senator Obama has not yet commented on the FutureGen dismantlement, and calls to his office for comment were not immediately returned.

"The Illinois Congressional delegation is going to make the case for FutureGen directly to the president," said Senator Durbin. "We will not go down without a fight."

FutureGen is a public-private partnership between the U.S. Energy Department and the FutureGen Industrial Alliance, Inc, a non-profit consortium of 12 international energy companies.

The Energy Department planned to contribute more than $1 billion for the project with remaining costs shared among members of the FutureGen alliance which includes Australian, British, and Chinese partners as well as large U.S. companies such as American Electric Power, Peabody Energy, Rio Tinto Energy America, and Southern Company.

The Alliance is responsible for design, construction, and operation of the facility. The DOE is responsible for independent oversight and coordinating participation of international governments.

Alliance member companies had planned to put nearly $400 million toward the project's cost and bring technical expertise and power plant engineering and construction experience to this effort.

The FutureGen Initiative, announced by President George W. Bush on February 27, 2003, is based on recommendations in the National Energy Policy issued in May 2001.

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