|
"This agreement shows
vision in creating a regional, bipartisan alliance that pools our
two states' assets to realize our common goal of developing our
abundant coal reserves in an environmentally responsible manner,"
Blagojevich said. "We share a coal basin that spans the Wabash and
Ohio rivers, and we share a commitment to unlocking the full energy
potential of Illinois Basin coal through coal gasification
technology. The only way to make coal king again is to make coal
clean, which is what we are both committed to doing." "We have all
the elements that are needed for this project: the natural
resources, ideal geologic structure and a commitment to clean coal
as American's ace in the energy hole," Daniels said.
Through the agreement, Indiana supports Illinois' application to
site the state-of-the-art, public-private electric-generating
facility in Illinois, while Illinois supports carbon dioxide
sequestration projects related to FutureGen in Indiana. An ongoing
collaboration over the past two years will continue to develop
sequestration in Indiana, Illinois and Kentucky to ensure that
FutureGen can meet its near-zero emissions goal.
The FutureGen Industrial Alliance, an industrial consortium, was
recently designated by the U.S. Department of Energy to choose a
site for what is being described as the coal-fueled power plant of
tomorrow. The alliance also will select technology for the project,
hire a design-construction team for the facility and operate it when
it is complete.
The alliance and the Department of Energy will launch the site
selection effort in 2006, with an aggressive schedule to start
construction within three years and have the plant in operation in
2012.
"In conjunction with Indiana, we will make it clear to the
alliance that our coal fields should be the focal point for
deployment of coal gasification technology," Blagojevich said. "We
will continue to cultivate our already strong reputation as the
first stop for prospective developers of coal-fueled energy projects
for the next generation."
Coal represents more than 85 percent of U.S. energy reserves, and
it fuels 50 percent of U.S. electric production. Throughout the
world, coal use has grown more than five times faster than projected
in the past three years.
Public and private entities in 14 states have expressed interest
in hosting or participating in the FutureGen project, according to
the alliance. Sending a recent letter emphasizing Illinois'
advantages as a site for the prototype facility, Blagojevich joined
with U.S. Sen. Richard Durbin, D-Ill.; U.S. Sen. Barack Obama,
D-Ill.; U.S. Rep. Jerry Costello, D-Belleville; and U.S. Rep. John
Shimkus, R-Collinsville.
With Illinois' geographic and geological advantages, such as
ample coal reserves and underground carbon dioxide storage capacity,
Blagojevich also signed legislation earlier this year to support
FutureGen with the nation's most comprehensive coal development
investment package. This support includes direct grants, tax
waivers, and credits and financing incentives.
The Illinois Department of Commerce and Economic Opportunity,
through its Office of Coal Development, has been conducting
preliminary reviews of several potential sites throughout the state.
A multiyear project, FutureGen's first budget period runs through
Jan. 31, 2007. First-year spending of $10.2 million will focus on
establishing the configuration and cost of the facility and
developing a short list of potential sites.
The FutureGen Alliance is a nonprofit coalition of the world's
largest coal and energy companies. Its members have committed more
than $250 million to project development. The U.S. government would
invest about $700 million.
Members of the alliance are American Electric Power; BHP Billiton;
the China Huaneng Group; CONSOL Energy Inc.; Foundation Coal;
Kennecott Energy, a member of the Rio Tinto Group; Peabody Energy;
and Southern Company. The not-for-profit Battelle research and
development firm is serving as coordinator of the alliance.
[to top of second column] |
 Text of the agreement signed by the Illinois and Indiana
governors:
MEMORANDUM OF
UNDERSTANDING BETWEEN THE STATE OF ILLINOIS AND THE STATE OF INDIANA
DECEMBER 14, 2005
WHEREAS, the U.S.
Department of Energy has launched a $1 billion initiative, with
private sector and international support, to design, construct and
operate a nominal 275-megawatt (net equivalent output) prototype
plant that will, when operational, produce electricity and
clean-burning hydrogen with near-zero emissions and demonstrate the
effectiveness, safety and permanence of geologic carbon dioxide
sequestration; and
WHEREAS, this
full-scale prototype power plant, which has been named FutureGen,
will turn coal into a gas, employ the latest technology to remove
the resultant air pollutants (sulfur dioxide, nitrogen oxides, and
mercury), separate carbon dioxide from other gases, and inject and
permanently sequester the isolated carbon dioxide in underground
formations, all as a means of reducing greenhouse gases; and
WHEREAS, by virtue
of its capabilities, FutureGen will, according to the U.S.
Department of Energy, be one of the boldest steps our nation takes
toward a pollution-free energy future and serve as a platform to
test and evaluate new technologies as they emerge from research and
development; and
WHEREAS, there is a
high degree of confidence that the prospects for FutureGen's success
will be enhanced by multi-state collaboration with respect to site
selection, evaluation of available water sources, access to the
electrical grid, and opportunities for geological carbon
sequestration; and
WHEREAS, an
industry-based consortium, known as the FutureGen Consortium,
expects to partner with the U.S. Department of Energy to develop the
FutureGen project; and
WHEREAS, being
selected by the FutureGen Consortium as the site for the FutureGen
plant will lead to valuable opportunities to develop an
understanding of, and the necessary infrastructure to support, the
low-emissions coal gasification process as a way of meeting future
electrical generation and other fuel needs using coal—America's most
abundant fossil resource:
NOW, THEREFORE, in
consideration of the premises and of the mutual undertakings
contained herein, the State of Illinois ("Illinois") and the State
of Indiana ("Indiana," and, with Illinois, the "parties"), acting by
and through their executives, hereby agree as follows:
1. The parties will
pool their collective expertise in a joint effort to secure the
FutureGen project for that part of the Illinois Coal Basin that is
shared by the two states. With goal of ensuring environmental
quality, abundant electricity supplies and economic growth, the
parties will make all reasonable efforts to assure that the
FutureGen power plant demonstration project is sited within Illinois
and that at least one carbon sequestration demonstration project is
sited within Indiana.
2. Illinois already
has in place a variety of financial incentives, has established a
solid technical collaboration among the Illinois, Indiana and
Kentucky geological surveys, and has held initial discussions
concerning potential sites for the FutureGen plant. Indiana will
become a partner in that effort, bringing its expertise and sharing
its knowledge base in the process.
3. The parties
believe that their joint collaboration and mutual support are
essential to affording them the best opportunity to secure, for them
and their citizens, the benefits of this important federal
initiative, with the goal of continuing to utilize abundant and
low-cost coal resources and making preparations for the hydrogen
economy, while meeting concerns over the harmful effects of
emissions, including greenhouse gases.
IN WITNESS WHEREOF,
the parties have, through their duly-elected executives, entered
into this Memorandum of Understanding as of the date first written
above.
Rod R. Blagojevich
Governor of Illinois
Mitchell E. Daniels
Jr.
Governor of Indiana
[News release] |
