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US energy secretary, Steven Chu, announces US$ 3 billion investment for CCS

US energy secretary, Steven Chu, has announced the selection of three new projects, with a value of US$ 3.18 billion, to accelerate the development of advanced coal technologies with CCS at commercial-scale. Chu made today’s announcement on a conference call with the Governor Joe Manchin of West Virginia, Senator Jay Rockefeller, and president of American Electric Power Co. Inc., Mike Morris. These projects will help to enable commercial deployment to ensure the US has clean, reliable, and affordable electricity and power. An investment of up to US$ 979 million, including funds from the American Recovery and Reinvestment Act, will be leveraged by more than US$ 2.2 billion in private capital cost share as part of the third round of the Department of Energy’s Clean Coal Power Initiative (CCPI).

'By harnessing the power of science and technology, we can reduce carbon emissions and create new clean energy jobs. This investment is part of our commitment to advancing CCS technologies to the point that widespread, affordable deployment can begin in eight to ten years,' said Chu.

Projects involved in the CCPI should demonstrate advanced coal-based technologies that will capture and sequester, or put to beneficial use, carbon emissions. The selections demonstrate technologies that:
  • Make progress toward a target CO2 capture efficiency of 90%.
  • Make progress toward a capture and sequestration goal of less than 10% increase in the cost of electricity for gasification systems and less than 35% for combustion and oxycombustion systems.
  • Capture and sequester or put to beneficial use an amount of CO2 emissions in excess of the minimum of 300,000 tpa required by CCPI.

The CCPI Round III was created in 2005 to reduce the time it would take for low-emission coal technologies to be ready for commercial use. Today’s awards are the second installment of projects awarded under CCPI Round III. Two projects were previously selected under CCPI Round III in July 2009 to receive US$ 408 million in DOE funds.

CCPI Round III selections announced today include the following:

American Electric Power Co. Inc.
Project Title: Mountaineer carbon dioxide capture and storage demonstration

American Electric Power (AEP) will design, construct and operate a chilled ammonia process that is expected to effectively capture at least 90% of the CO2 (1.5 million tpa) in a 235 MW flue gas stream at the existing 1300 MW Appalachian Power Co. (APCo) Mountaineer power plant near New Haven, West Virgina. The captured CO2 will be treated, compressed and then transported by pipeline to proposed injection sites near the capture facility. During the operation phase, AEP plans to permanently store the entire amount of captured CO2 in two separate saline formations located approximately 1.5 miles below the surface. The project team includes AEP, APCo, Schlumberger Carbon Services, Battelle Memorial Institute, Consol Energy, Alstom and an advisory team of geologic experts (DOE share: US$ 334 million; project duration: 10 years).

Southern Co. Services Inc.
Project Title: Southern Co. carbon capture and sequestration demonstration

Southern Co. Services (SCS) will retrofit a CO2 capture plant on a 160 MW flue gas stream at an existing coal-fired power plant: Alabama Power’s Plant Barry, north of Mobile, Alabama. The captured CO2 will be compressed and transported through a pipeline, and up to one million tpy of CO2 will be sequestered in deep saline formations. Southern Co. Services will also explore and utilise potential opportunities for beneficial use of the CO2 for enhanced oil recovery (EOR). In addition to SCS, the project team includes Mitsubishi Heavy Industries America, Schlumberger Carbon Services, Advanced Resources International, the Geological Survey of Alabama, EPRI, Stanford University, the University of Alabama, AJW Grou, and the University of Alabama at Birmingham (DOE share: US$ 295 million; project duration: 11 years).

Summit Texas Clean Energy LLC
Project Title: Texas Clean Energy project (TCEP)

Summit Texas Clean Energy LLC will integrate Siemens gasification and power generating technology with carbon capture technologies to effectively capture 90% of the CO2 (2.7 million tpa) at a 400 MW plant to be built near Midland-Odessa, Texas. The captured CO2 will be treated, compressed and then transported by CO2 pipeline to oilfields in the Permian Basin of West Texas, for use in EOR operations. The Bureau of Economic Geology (BEG) at the University of Texas will design and assure compliance with a state-of-the-art CO2 sequestration monitoring, verification and accounting programme (DOE share: US$ 350 million; project duration: 8 years).

Published on 05/01/2010


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