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Department of Energy pulls plug on $1.8 billion carbon burying project; cites cost overruns, delays

January 31, 2008

The U.S. Department of Energy will pull the plug on an $1.8 billion project to build a power plant that stores carbon emissions underground. The FutureGen project, which had aimed to build its first facility in Mattoon, Illinois, has been beset with delays and cost overruns.

FutureGen is a public-private partnership to design, build, and operate the world’s first coal-fueled, near-zero emissions power plant, at an estimated net project cost of US $1.5 billion. The commercial-scale plant will prove the technical and economic feasibility of producing low-cost electricity and hydrogen from coal while nearly eliminating emissions. It will also support testing and commercialization of technologies focused on generating clean power, capturing and permanently storing carbon dioxide, and producing hydrogen.

Yesterday, FutureGen Alliance CEO Michael J. Mudd said “The Alliance, which is an independent non-profit entity, has proposed new solutions to address cost concerns, is committed to its cooperative agreement with DOE, and will continue to work with Congress, the State of Illinois, foreign governments, and other stakeholders to keep FutureGen moving ahead at Mattoon, Ill.

“FutureGen will be a commercial-scale power plant with carbon capture and sequestration, which is one of its hallmarks. Carbon capture and sequestration is an important technology, but it must be integrated with advanced power plant technology so that we understand the full system cost, performance and operating strategies.

“FutureGen can deliver the needed technology with urgency. It will take four to five years for DOE to evaluate new proposals, place contracts, and conduct environmental reviews for new projects. FutureGen has crossed these hurdles and is positioned for success.”

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    Written by Jim Lane · Filed Under Research 

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