FutureGen Clean Coal Plant Again in America's Future

Energy Secretary Steven Chu announced Friday that the multi-billion dollar public-private FutureGen project could move forward, based on completion of a new site-specific design, detailed cost estimate and fundraising activities.

Planned for a site near the town of Mattoon, Illinois, the clean coal plant is a public-private partnership between the U.S. Energy Department and the FutureGen Industrial Alliance, Inc, a nonprofit consortium of 20 American and international energy companies.

"This important step forward for FutureGen reflects this administration’s commitment to rapidly developing carbon capture and sequestration technology as part of a comprehensive plan to create jobs, develop clean energy and reduce climate change pollution." said Secretary Chu.

"The FutureGen project holds great promise as a flagship facility to demonstrate carbon capture and storage at commercial scale," said Chu. "Developing this technology is critically important for reducing greenhouse gas emissions in the U.S., and around the world."

Artist's drawing of a portion of the FutureGen clean coal plant (Image countesy FutureGen Alliance)

The Department of Energy’s total anticipated financial contribution for the project is $1.073 billion, $1 billion of which comes from Recovery Act funds for carbon capture and storage research, the secretary said.

The FutureGen Alliance’s total anticipated financial contribution is $400 million to $600 million, based on a goal of 20 member companies each contributing a total of $20 million to $30 million over a four to six year period.

After five years of discussions and planning and a year-long competition for site selection, the location in Mattoon was chosen just before the Bush administration's Energy Secretary Samuel Bodman pulled the financial rug out from under the project. (ENS, January 31, 2008)

The new agreement comes after several months of discussions between officials from the Alliance and the Department of Energy, said FutureGen Alliance Chief Executive Officer Michael Mudd.

Under the agreement, the Alliance and Department of Energy will work together through the rest of the year to refine the facility’s design to reduce cost and technical risk.

Several technology configurations will be considered and upcoming discussions with equipment vendors, the engineering team and economics will shape the final design of the facility, said Mudd.

"The agreement that was reached by the Department of Energy and the FutureGen Alliance is an historic moment for both our state and our country," said Assistant Senate Majority Leader Dick Durbin, an Illinois Democrat, who protested the Bush administration's decision to kill the project.

"In my time in Congress, I can't recall a project that has greater scientific and practical significance than FutureGen, not to mention the enormous economic benefit it will have in Illinois. I want to thank Secretary Chu for his leadership along with my colleagues in the Senate, members of the Illinois Congressional Delegation and the State of Illinois for working with me to keep this project alive for the Obama administration."

"This is a positive development and fantastic news for Coles County, and if the promise of this technology holds true, the entire country," said Congressman Tim Johnson, an Illinois Republican whose congressional district includes Mattoon. "The people of Coles County and Illinois have invested their time and energy into this project over many years. It’s been a heartbreaking process at times but they have kept the faith, their leaders have maintained the momentum even when the federal government turned its back on them."

The FutureGen coal plant could be built on this site at Mattoon, Illinois. (Photo by America's Power)

Under the terms of the provisional agreement between the federal government and the FutureGen Alliance, the Department of Energy will issue a Record of Decision on the project by the middle of July.

From the end of July 2009 through early 2010 the project will restart preliminary design activities and complete a site-specific preliminary design and updated cost estimate.

The Alliance will seek to expand the sponsorship group and develop a complete funding plan.

Following the completion of the detailed cost estimate and fundraising activities, the Department of Energy and the FutureGen Alliance will make a decision either to move forward or to discontinue the project early in 2010.

Both parties agree that a decision to move forward is the preferred outcome and plan to reach a revised cooperative agreement that will include a funding plan for the full project.

Funding will be phased and conditioned based on completion of an environmental review as required by the National Environmental Policy Act.

Contingent upon an acceptable total project cost and funding, Mudd says the Alliance expects to begin equipment procurement and construction in 2010.

"The Alliance is extremely grateful to Secretary Chu and DOE, for the tremendous support and tenacity of Senator Durbin and project champions on Capitol Hill," said Mudd, who also commended Coles County, the state and the people of Illinois.

"The jobs created at FutureGen will result in important technology to reduce emissions from coal-fueled power plants at home and around the world," said Mudd. "The Alliance is honored to work in partnership with such unwavering supporters, and remains committed to testing and proving CCS technology so future generations can have cleaner energy for a secure future."

Copyright Environment News Service (ENS) 2009. All rights reserved.