Wednesday, September 01, 2010
 
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FutureGen Alliance stays with clean coal project

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[September 01, 2010]  CHICAGO -- The federal government's proposal to develop a multibillion-dollar clean coal project will move forward with the support of a coalition of energy companies.

"The alliance is pleased that DOE and Sen. Durbin have been able to preserve the $1 billion in funding for advancing clean coal technologies and the associated jobs," said Steve Winberg, chairman of the FutureGen Alliance, a coalition of energy companies. "We look forward to working with them and our new partners in making FutureGen 2.0 a success."

The Tuesday announcement came as a relief to those involved in the project, who had worried that the U.S. Department of Energy's decision to change projects could jeopardize the group's involvement.

"This keeps clean coal technology alive in Illinois," said Phil Gonet, president of the Illinois Coal Association. "It adds one more tool to put Illinois coal to work."

The Department of Energy caused quite a stir earlier this month when it announced that plans to build a new clean coal plant in Mattoon were being scrapped in order to retrofit an existing oil-fired plant 120 miles west in Meredosia. Mattoon officials balked at the government's offer to house waste in the town.

FutureGen board members had a secret meeting in Washington, D.C., on Tuesday to debate whether or not to remain with the project they had spent seven years nurturing. Ultimately, the board decided to remain in partnership with the department, a move hailed by Sen. Dick Durbin, D-Ill., who helped steer the project to Illinois.

"The vote by the FutureGen Alliance (Tuesday) affirmed what the Department of Energy, the state of Illinois and so many potential Illinois community partners already know -- FutureGen 2.0 is an exciting opportunity to create jobs in Illinois and put our state on the cutting edge of clean coal research," he said.

In September the department will send $1 billion to Ameren -- which owns the Meredosia plant -- the alliance and several other parties involved in the project. That money will be used to help develop the retrofitting, which is expected to break ground in 2012. Officials are scouting several areas across the state to store waste.

As one clean coal project moves forward, the fate of another rests in the hands of the General Assembly.

The Illinois Commerce Commission will deliver a much-anticipated report to lawmakers on Wednesday about the costs and concept of the Taylorville Energy Center, a clean coal plant designed to convert coal to natural gas and store waste beneath the earth’s surface.

The $3.5 billion plant employs technology similar to the original FutureGen concept and is distinct from 2.0 in that it already has an idea of what to do with its carbon emissions. Project developers are hoping to pump the waste 6,000 feet below the surface and funnel carbon through a pipeline to the Gulf states, where it can be used to extract oil from wells.

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Dave Lundy, spokesman for Tenaska Energy, the Nebraska company behind the project, said Illinois is the ideal location for carbon capture because of its mix of porous rocks to absorb carbon and thick cap rock to trap it. It is no accident that Taylorville is located dead center between Mattoon and Meredosia.

"The center of Illinois is the absolute perfect spot in the world for carbon sequestration," he said.

Lundy is excited that FutureGen is moving forward and hopes Taylorville's plant can as well.

"Illinois really has the opportunity to become the headquarters of the most advanced coal development technology in the world," he said.

FutureGen has attracted the attention of those involved in the Tenaska project. Taylorville Mayor Greg Brotherton has said publicly that he hopes to collaborate with FutureGen developers.

The project has run into objections from several groups, which argued that the project would raise energy rates. Attorney General Lisa Madigan capped rate increases at 2 percent over the next 30 years in an effort to curb concerns.

If lawmakers approve the project, building will begin next year and the plant is expected to be operational by 2015.

[Illinois Statehouse News; By BILL McMORRIS]

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