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19-April-2007 -- The Wyoming Infrastructure Authority Board of Directors took action today to join with PacifiCorp in a public-private partnership to develop an integrated gasification combined cycle power plant. The two parties have agreed to a memorandum of understanding to further explore the development of a demonstration project to the next level of detail at one or more sites in Wyoming using one or more gasification technologies.
PacifiCorp, through its Rocky Mountain Power division, serves 957,000 electric customers in Wyoming, Idaho and Utah, and through its Pacific Power division, serves 714,000 customers in Oregon, Washington and California.
The decision by the board culminates a six-month effort to establish a coal gasification demonstration partnership in Wyoming. The Wyoming Infrastructure Authority issued a request for proposals last July and received 17 responses from companies in Wyoming and around the country. After a comprehensive evaluation, the PacifiCorp proposal emerged as a leading candidate to establish a development partnership.
"I'm excited to see the Wyoming Infrastructure Authority get underway with plans for a clean coal IGCC power plant in Wyoming," U.S. Senator Craig Thomas said. "Their effort marks a positive step toward a plan that I initiated with Section 413 of the 2005 Energy Policy Act. Constructing this plant at altitude in the West will enable our state to remain a significant contributor to the advancement of clean coal technologies that will address the concerns about carbon dioxide emissions. In addition to our vast coal reserves, our state has the geology required to sequester these emissions and a willingness to continue providing the next generation of energy for our country."
Wyoming Senator Mike Enzi called the demonstration plant "the kind of clean coal project we need to show that Wyoming's coal can continue to be used in an environmentally sound manner to help supply the nation with clean and reliable energy using its abundant coal reserves."
"I applaud the Wyoming Infrastructure Authority's efforts to maintain Wyoming's status as our nation's top energy provider through the proactive development of a demonstration coal gasification plant in our state," stated U.S. Representative Barbara Cubin.
"With its nationally important energy sector, Wyoming should be poised to be at the cutting edge of new clean energy technologies," said Governor Dave Freudenthal. "The scope and scale of this coal gasification project will take a concerted and sustained effort by all parties to bring it to fruition, but I'm optimistic that this innovative project has a bright future. I appreciate the effort of all respondents to the authority's RFP and look forward to working not only with PacifiCorp on this project, but with other companies whose proposals may have merit but did not fit the requirements of this process."
Under terms of the partnership, the authority will immediately begin to work with the Wyoming Congressional delegation, other members of Congress and the U.S. Department of Energy, to secure federal funding under Section 413 of the Energy Policy
Act of 2005. Section 413 authorizes a contribution of federal funds to support an IGCC coal gasification commercial demonstration project using western coals at altitude.
PacifiCorp is committing to fund one or more detailed feasibility studies to further develop its proposal. Each feasibility study will be with alternative IGCC technology suppliers or consortia. The feasibility studies also will identify alternatives for the sequestration of carbon dioxide emissions that will be captured at the operating facility.
The proposed facility is planned for PacifiCorp's Jim Bridger Plant complex near Point of Rocks, Wyoming. The Bridger site is an existing generating site with four operating coal units. The new 500-megawatt demonstration plant will be designed to utilize Wyoming Powder River Basin coal and other Wyoming coals and will meet the other objectives described in Section 413 of the Energy Policy Act to demonstrate IGCC technology at altitude on a commercial scale. The plant also will be planned and operated with carbon dioxide capture and sequestration, either through enhanced oil recovery or some other form of geologic sequestration.
"The WIA Board was very deliberate in its process to select an IGCC development partner," said Chairman Michael Easley. "The PacifiCorp proposal was chosen for a partnership because it is a strong candidate for successfully demonstrating the technology can emerge and be a viable alternative for electric utilities in western states."
"We are pleased to be working on this project and hope it will be funded and built," said Richard Walje, president of PacifiCorp's Rocky Mountain Power division. "As we plan to meet the growing demand for electricity in the states we serve, we are supportive of cooperative ventures between government and private interests to find new environmentally responsible ways to generate electricity. The work to bring this project on line will certainly help to mature carbon control technologies and make them ready for widespread use by utilities in the future."
The Wyoming Infrastructure Authority was formed in 2004 by the state of Wyoming. The authority's mission is to diversify and expand the state's economy through improvements in Wyoming's electric transmission infrastructure to facilitate the consumption of Wyoming energy.
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