Coal industry backs US FutureGen

Washington (Platts)--12Sep2005

A group of large coal producers and consumers has formed a nonprofit
organization that is forging an agreement with the US Department of Energy to
build the world's first zero-emission coal power plant. Details of the
FutureGen Industrial Alliance were detailed in a draft press release
distributed inadvertently by the National Mining Association. 

FutureGen plans had been delayed by the inability of industry and the
government to agree on financing. But Ken Humphries of Battelle, the
coordinator of the alliance, said last week that DOE and the alliance plan to
announce a financial agreement in October. 

Under a plan published early last year, the 275-MW project would cost
$950-mil, with DOE contributing $620-mil, industry $250-mil, and other
countries $80-mil and be built by 2015. Sources said China is among the
countries interested in joining. The alliance was established informally
several years ago. Its incorporation "makes it clear to everyone that industry
is now organized, it's capitalized and it's ready to move ahead with the
department," Humphries said. 

The alliance consists of American Electric Power, BHP Billiton Energy Coal
Co., CONSOL Energy, Foundation Coal, Kennecott Energy, Peabody Energy and
Southern Company. Several states are said to be interested in hosting the
plant, but any site will be subject to environmental reviews that could take
several years.

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