DOE Releases Draft for Next Steps with Restructured FutureGen Approach

8 May 2008

The US Department of Energy (DOE) released a draft Funding Opportunity Announcement (FOA) to solicit public input on the proposed demonstration of multiple commercial-scale Integrated Gasification Combined Cycle (IGCC) or other clean coal power plants with carbon capture and storage (CCS) technology under the DOE’s restructured FutureGen approach. (Earlier post.)

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 30 January 2008 to build on technological research and development 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 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 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 extending through Wednesday, 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’s estimated investment, which would be set out in cooperative agreements or technology investment agreement(s) awarded to commercial partners, and would range from $100 million - $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 31 December 2015.  DOE anticipates $290 million (through FY ’09) will be available for initial project selection(s) under this FOA and anticipates an additional $1.01 billion in subsequent years.

DOE’s draft FOA also requires that 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 megawatts (MW) gross electricity output; and the project must be located in the United States. 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 project(s), including quantifying and assessing CO₂ capture, transport, and storage aspects for the duration of a 3-5 year demonstration of a least one million metric tons of CO₂ injected per year in a saline formation; monitoring the plume(s) of injected CO₂ for a minimum of two years after cessation of the injection demonstration, with the results of the monitoring reported to DOE; and developing information necessary to estimate costs of future CO2 management systems.

Resources

• Draft FOA Restructured FutureGen