State Hopes to Land Big Coal Project: Congress Approves $18 Million for Billion-Dollar, Zero-Emission Plant That Would Be World's First
Nov 26 - Charleston Daily Mail
DAILY MAIL STAFF
West Virginia is among the contenders to be the site of the plant, which has
an estimated overall cost of $1 billion.
The $18 million, which is just a start, came through an overall spending bill
passed by Congress over last weekend.
"It's very helpful. It allows the project to be on schedule," said
Bill Raney, the president of the West Virginia Coal Association. "Of
course, we'd love to have it sited in West Virginia. It's a tremendous step in
the right direction."
The project, called FutureGen, would combine federal and private money for
the clean coal plant. The plant would achieve its zero emissions through a
combination of pollution controls and injecting carbon dioxide into an
underground storage area.
The result would be emissions-free hydrogen power generated from coal,
supporters say.
West Virginia development officials have stated their intention to contend as
a location for the project.
The state Development Office, through its Energy Efficiency Office, has
started studying West Virginia sites capable of storing carbon dioxide. The
office also has been working to identify regional hydrogen markets.
The $18 million investment by Congress is a positive sign, said Jeff Herholdt,
manager of the Energy Efficiency Office.
"On any other initiative, $18 million would be substantial," he
said. "When you're comparing it to the overall cost of buying all the
pieces, it is a small amount. But that is what is needed at this juncture.
"We need the $18 million for design work that is an important part of
FutureGen. The creators have a pretty ambitious plan, so there's substantial
design work that's going to have to go into coming up with the specific plan for
accomplishing this goal."
The project relies on a combination of government funding and private
backing. FutureGen is expected to include a consortium of private companies that
would be responsible for at least 25 percent of the cost.
Anticipated members of the consortium include American Electric Power, CONSOL
Energy, Kennecott Energy, The North American Coal Company, Pacific Corporation,
Peabody Energy, Foundation Energy, Southern Company and TXU.
Once the consortium is formed officially, West Virginia could apply to be the
site for the project, Herholdt said.
"We think these projects are the future of the West Virginia energy
industry," Herholdt said. "We look forward to a hydrogen economy where
West Virginia's energy reserves can have a wider role in meeting our nation's
energy needs."
The $18 million demonstrates congressional support and should be enough
funding for at least this year, said Richard Bajura, the director of the
National Research Center for Coal and Energy at West Virginia University.
The White House actually asked for 13 times the amount actually funded.
"Congress is supporting the program, they're just not earmarking funding
in advance," Bajura said.
The National Mining Association believes this year's funding is a vote of
confidence by Congress in the project, said Luke Popovich, a spokesman for the
association.
"This is another downpayment on this project," Popovich said.
"It's a further commitment. With this $18 million, we're confident there is
still the commitment to continue this important research project."
But the mining association and representatives of private companies would
like for Congress to provide even more backing, he said.
Congress had another $237 million for clean coal technology that once had
been specified for FutureGen, Popovich said. That money still could be used for
the project, but it isn't specified at this point, he said.
"I think Congress has been reluctant to be that specific in earmarking
the rest of this money to FutureGen," he said. "But with this $18
million, we're confident there is still the commitment to continue with this
important research project.
"As far as the private sector is concerned, we believe the ball is in
the government's court on FutureGen."
Contact writer Brad McElhinny at bradmc@dailymail.com or 348- 4872.