DOE investing $979 million in Recovery Act funds on carbon capture and storage

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Washington, D.C., December 7, 2009 — Department of Energy Secretary Steven Chu announced the selection of three new projects with a value of $3.18 billion to accelerate the development of advanced coal technologies with carbon capture and storage at commercial scale.

The DOE said these projects would help to enable commercial deployment to ensure the United States has clean, reliable and affordable electricity.

An investment of up to $979 million, including funds from the American Recovery and Reinvestment Act, will be leveraged by more than $2.2 billion in private capital cost share as part of the third round of the DOE’s Clean Coal Power Initiative.

“By harnessing the power of science and technology, we can reduce carbon emissions and create new clean energy jobs. This investment is part of our commitment to advancing carbon capture and storage technologies to the point that widespread, affordable deployment can begin in eight to ten years,” Chu said.

Projects will demonstrate advanced coal-fired technologies that will capture and sequester or put to beneficial use carbon emissions. The selections demonstrate technologies that:

  • make progress toward a target carbon dioxide capture efficiency of 90 percent

  • make progress toward a capture and sequestration goal of less than 10 percent increase in the cost of electricity for gasification systems and less than 35 percent for combustion and oxycombustion systems;
  • capture and sequester or put to beneficial use an amount of carbon emissions in excess of the minimum of 300,000 tons per year required by CCPI.

The Clean Coal Power Initiative Round III was created in 2005 to reduce the time it would take for low-emission coal technologies to be ready for commercial use. These awards are the second installment of projects awarded under CCPI Round III. Two projects were previously selected under CCPI Round III in July 2009 to receive $408 million in DOE funds.

Clean Coal Power Initiative Round III selections announced today include:

American Electric Power Company’s Mountaineer Carbon Dioxide Capture and Storage Demonstration

American Electric Power (AEP) will design, construct and operate a chilled ammonia process that is expected to effectively capture at least 90 percent of the carbon (1.5 million metric tons per year) in a 235 MW flue gas stream at the existing 1,300 MW Appalachian Power Company (APCo) Mountaineer Power Plant near New Haven, W.V.

The captured carbon will be treated, compressed, and then transported by pipeline to proposed injection sites located near the capture facility. During the operation phase, AEP plans to permanently store the entire amount of captured carbon in two separate saline formations located about 1.5 miles below the surface. The project team includes AEP, APCo, Schlumberger Carbon Services, Battelle Memorial Institute, CONSOL Energy, Alstom, and an advisory team of geologic experts. (DOE share: $334 million; project duration: 10 years)

Southern Company’s Carbon Capture and Sequestration Demonstration

Southern Company Services will retrofit a CO2 capture plant on a 160-MW flue gas stream at an existing coal-fired power plant, Alabama Power’s Plant Barry, located north of Mobile, AL.

The captured carbon will be compressed and transported through a pipeline, and up to one million metric tons per year of carbon will be sequestered in deep saline formations. Southern Company Services will also explore and use potential opportunities for beneficial use of the carbon for enhanced oil recovery.

In addition to SCS, the project team includes Mitsubishi Heavy Industries America, Schlumberger Carbon Services, Advanced Resources International, the Geological Survey of Alabama, EPRI, Stanford University, the University of Alabama, AJW Group, and the University of Alabama at Birmingham. (DOE share: $295 million; project duration: 11 years)

Summit Texas Clean Energy’s Texas Clean Energy Project

Summit Texas Clean Energy, LLC will integrate Siemens gasification and power generating technology with carbon capture technologies to effectively capture 90 percent of the carbon dioxide (2.7 million metric tons per year) at a 400 MW plant to be built near Midland-Odessa, Texas.

The captured carbon will be treated, compressed and then transported by CO2 pipeline to oilfields in the Permian Basin of West Texas, for use in enhanced oil recovery operations. The Bureau of Economic Geology at the University of Texas will design and assure compliance with a carbon sequestration monitoring, verification and accounting program. (DOE share: $350 million; project duration: 8 years)

For more news on the U.S. Department of Energy, visit our policy and regulation topic center


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