First U.S. Commercial-Scale Carbon Capture, Storage Project Advances

June 15, 2009 // Published as a news service by IHS

The DOE will issue a record of decision on the project by the middle of July. From the end of July 2009 through early 2010, the two parties agreed to the following actions:

• Rapid restart of preliminary design activities.
• Completion of a site-specific preliminary design and updated cost estimate.
• Potential additional subsurface characterization.
• Expansion of the FutureGen Alliance sponsorship group.
• Development of a complete funding plan.

Following the completion of detailed cost estimate and fundraising activities, the DOE and the FutureGen Alliance will make a decision either to move forward or to discontinue the project early in 2010.

However, both parties agreed that a decision to move forward is the preferred outcome. They plan to reach a revised cooperative agreement that will include a funding plan for the full project, according to the DOE.

Funding will be phased and conditioned based on completion of a National Environmental Policy Act (NEPA) review.

The DOE's total anticipated financial contribution for the project is $1.073 billion, $1 billion of which comes from American Recovery and Reinvestment Act of 2009 funds for carbon capture and storage research.

The FutureGen Alliance's total anticipated financial contribution is $400 million to $600 million, based on a goal of 20 member companies each contributing a total of $20 million to $30 million over a four- to six-year period.

The group, with support from DOE, will pursue options to raise additional non-federal funds needed to build and operate the facility, including options for capturing the value of the facility that will remain after conclusion of the research project, potentially through an auction of the residual interests in the late fall.

"The FutureGen project holds great promise as a flagship facility to demonstrate carbon capture and storage at commercial scale," said DOE Secretary Steven Chu. "Developing this technology is critically important for reducing greenhouse gas emissions in the U.S., and around the world."

Source: U.S. Department of Energy (DOE).