San Francisco, June 21, 2011 — Summit Power Group's Texas Clean Energy Project will enter into a 25-year power purchase agreement with the country's largest municipally owned natural gas and electric utility, CPS Energy, which announced the agreement at a press conference today with San Antonio Mayor Julian Castro.
The company will purchase 200 MW of power from TCEP, an integrated gasification combined cycle 400 MW power/poly-gen plant that will capture 90 percent of the carbon dioxide, 99 percent of the sulfur, more than 95 percent of the mercury, and eliminate more than 90 percent of the nitrogen oxides produced by the process.
The power off-take arrangement marks a major milestone for TCEP, which has already marketed its other two major commercial products, urea fertilizer and compressed carbon dioxide for use in enhanced oil recovery in the West Texas Permian Basin, and plans to break ground in Penwell, Texas, outside Odessa by the end of the year, with a startup date in late 2014 or early 2015.
TCEP received its final air quality permit from the Texas Commission on Environmental Quality last December with no opposition or requests for a hearing.
CPS announced partnerships with the companies as part of its New Energy Economy vision and to help offset the mothballing of the utility's coal-fired J.T. Deely Power Plant by 2018, about 15 years earlier than planned, with clean coal, solar, natural gas, and energy efficiency and conservation.