DOE commits $1 billion in Recovery Act funding to FutureGen 2.0

Washington, D.C., September 29, 2010 – U.S. Energy Secretary Steven Chu announced that the Department of Energy has signed final cooperative agreements with the FutureGen Industrial Alliance and Ameren Energy Resources that formally commit $1 billion in Recovery Act funding to build FutureGen 2.0.

According to the DOE, the FutureGen 2.0 project will help to position the U.S. as a leader in innovative technologies for reducing carbon emissions from existing coal-fired power plants.

As part of this new initiative, the DOE will partner with the FutureGen Industrial Alliance to select an Illinois host community for the carbon storage site as well as a geologic sequestration research complex and a craft labor training center.

This site could eventually become a regional CO2 storage site in downstate Illinois. The project partners estimate that FutureGen 2.0 will bring 900 jobs to Illinois and another 1,000 to suppliers across the state.

“Today’s milestone will help ensure the U.S. remains competitive in a carbon constrained economy, creating jobs while reducing greenhouse gas pollution,” said Secretary Chu. “Developing innovative, cost effective carbon capture and storage technologies is critical to the country’s transition to a clean energy future.”

“This $1 billion federal commitment is a critical step to bringing FutureGen to Illinois. We look forward to demonstrating to the world that we can use one of our greatest natural assets in a way that protects our environment and puts more people to work,” Illinois Governor Pat Quinn said.

In August, DOE announced its intention to fund FutureGen 2.0 as part of an integrated strategy to repower America’s coal industry. Ameren Energy Resources, Babcock and Wilcox, and Air Liquide Process and Construction, Inc. are leading the project to repower Ameren’s 200 MW Unit 4 in Meredosia, Illinois with advanced oxy-combustion technology.

The plant’s new boiler, air separation unit, CO2 purification and compression unit will deliver 90 percent CO2 capture and eliminate most SOx, NOx, mercury, and particulate emissions.

The Ameren Energy Resources team estimates that the retrofitting of the plant is expected to create about 500 construction jobs and allow Ameren to add about 50 workers to the plant staff, once the repowered unit is operational.

The FutureGen Industrial Alliance and the Ameren, B&W, and Air Liquide team are developing a technical cooperation agreement to ensure coordination among each element in FutureGen 2.0 and to provide the foundation for rapid commercial deployment for this exciting new technology once this facility is operational.

The FutureGen Industrial Alliance, working with the State of Illinois, will develop a permanent CO2 sequestration facility, research and visitors facilities, and a labor training center at the site. The Alliance will also build a CO2 pipeline network from Meredosia to the sequestration site.

The pipeline and storage site will transport and store more than 1 million tons of captured CO2 per year. The project partners estimate the new pipeline network is expected to create additional construction and permanent jobs.

The pipeline network, along with the storage site to be selected in early 2011, will help to lay the foundation for a regional CO2 network. The Illinois storage site will be used to conduct research on site characterization, injection and storage, and CO2 monitoring and measurement.

The DOE is working with the FutureGen Industrial Alliance, with details to be announced in the coming weeks, to develop a competitive process to select the host for the CO2 storage site, the visitors complex and training center, and vendor(s) to build the pipeline and the injection and monitoring wells.

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