DOE Releases FOA for Restructured FutureGen Approach

May 21, 2008 // Published as a news service by IHS

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 announced a restructured approach to its FutureGen project on Jan. 30, 2008 to build on technological R&D advancements in CCS technology achieved over the past five years, changing market conditions for clean coal technology, as well as efforts to limit taxpayer exposure and maximize the U.S. federal government's investment in this cutting-edge technology.

The 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 megawatts (MW) of power - with CCS technology and, with multiple projects funded, is expected to at least double the amount of carbon dioxide (CO2) sequestered compared to the concept announced in 2003.

The draft FOA is intended to provide an opportunity for public review and comment until 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 estimated investment, which would be set out in cooperative agreements or technology investment agreements 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 Dec. 31, 2015.

DOE anticipates $290 million (through Fiscal Year 2009) will be available for initial project selections under this FOA and anticipates an additional $1.01B in subsequent years.

The draft FOA requires:

• At least 50% 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.
• The project must be located in the U.S.

In addition, the projects must be designed to achieve a goal of approximately 90% capture of carbon content in the syngas or flue gas and must achieve a minimum capture rate of 81%. Under the draft FOA, projects must also remove at least 90% of the mercury emissions based on mercury content of the coal, at least 99% of the sulfur emissions based on sulfur content of the coal and reduce nitrogen oxide and particulate emissions to very low levels.

To ensure safe and permanent sequestration, DOE requires a number of monitoring and verification performance requirements for FutureGen projects, including:

• Quantifying and assessing CO2 capture, transport and storage aspects for the duration of a three to five year demonstration of a least one million metric tons of CO2 injected per year in a saline formation.
• Monitoring the plumes of injected CO2 for a minimum of two years after cessation of the injection demonstration, with the results of the monitoring reported to DOE.
• Developing information necessary to estimate costs of future CO2 management systems.

The restructured FutureGen approach will focus on the challenges associated with avoidance and reduction of carbon emissions and criteria pollutants through sequestration.

Technical, economic and operational results from multiple projects will inform and guide the promulgation of regulations related to wide-scale carbon sequestration activities and at the same time will help establish technologies and protocols for CO2 monitoring, mitigation and verification, said DOE.

The restructured FutureGen program is a cost-shared collaboration between the U.S. federal government and industry to accelerate commercial deployment of IGCC or other advanced clean coal-based power generation technology with CCS.

According to DOE, widespread replication of this technology by the private sector and global community would help to meet energy and environmental needs by expanding the use of an abundant energy resource in environmentally responsible ways, facilitating economic growth and increasing living standards in a way that maximizes federal investment and limits taxpayer risk.

"After reviewing dozens of constructive comments on our restructured approach to FutureGen, we are pleased...to issue a draft solicitation as we take steps to demonstrate the commercial potential of cutting-edge carbon sequestration technology," Undersecretary 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 [the U.S.'s] rapidly growing demand for energy using our most abundant energy resource in an environmentally responsible way."

Source: U.S. Department of Energy Office of Fossil Energy.