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7 May 2008 -- The U.S. Department of Energy (DOE) released a draft funding opportunity announcement (FOA) to solicit public input on the demonstration of multiple commercial-scale Integrated Gasification Combined Cycle (IGCC) or other clean coal power plants with cutting-edge carbon capture and storage (CCS) technology under the Department's restructured FutureGen approach. The draft solicitation outlines the planned scope of the project, evaluation criteria, terms and conditions and cost sharing requirements for public-private cooperation under FutureGen.
DOE restructured its FutureGen project in January soon after private-sector backers of the program selected Matoon, Ill., as the project site. With federal support for the Mattoon project withdrawn, its future remains cloudy.
DOE said its restructured approach aims to accelerate the near-term deployment of advanced clean coal technology by equipping new IGCC or other clean coal commercial power plants (that generate at least 300 MW of power) with CCS technology. With multiple projects funded, FutureGen is expected by DOE to at least double the amount of carbon dioxide (CO2) sequestered compared to the concept first announced in 2003.
"After reviewing dozens of constructive comments on our restructured approach to FutureGen, we are pleased today to issue a draft solicitation as we take steps to demonstrate the commercial potential of cutting-edge carbon sequestration technology," Under Secretary of Energy Bud Albright said. "Each of these plants will sequester at least one million metric tons of carbon dioxide annually and will help meet our nation's rapidly growing demand for energy using our most abundant energy resource in an environmentally responsible way."
The draft FOA is intended to provide an opportunity for public review and comment beginning today and extending through Wednesday, May 21, 2008. Input from interested parties will be considered in the development of the final solicitation, which DOE expects to release in mid-summer 2008, with selection of projects targeted for December 2008.
The draft FOA outlines DOE's estimated investment, which would be set out in cooperative agreements or technology investment agreement(s) awarded to commercial partners, and would range from $100 million to $600 million per project. Subject to compliance with the National Environmental Policy Act, the draft FOA envisions commercial operation of IGCC or other clean coal power plants equipped with CCS technology to begin as soon as the plants are commissioned by December 31, 2015. DOE anticipates $290 million (through FY '09) will be available for initial project selection under its FOA. An additional $1.01 billion could be available in subsequent years.
DOE's draft FOA also requires that at least 50 percent of the energy output of the project's energy conversion system must be used to produce electricity; the project must produce at least 300 MW gross electricity output; and the project must be in the United States. In addition, the projects must be designed to achieve a goal of approximately 90 percent capture of carbon content in the syngas or flue gas and must achieve a minimum capture rate of 81 percent. Under the draft FOA, projects must also remove at least 90 percent of the mercury emissions based on mercury content of the coal, at least 99 percent of the sulfur emissions based on sulfur content of the coal, and reduce nitrogen oxide and particulate emissions to very low levels.
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