US DOE Signs Cooperative Agreement for New Hydrogen Power Plant

6 November 2009

The US Department of Energy (DOE) has signed a cooperative agreement with Hydrogen Energy California LLC (HECA) to build and demonstrate a hydrogen-powered electric generating facility, complete with carbon capture and storage, in Kern County, Calif. (Earlier post.)

HECA, which is owned by Hydrogen Energy International, BP Alternative Energy, and Rio Tinto, plans to construct an advanced integrated gasification combined cycle (IGCC) plant that will produce power by converting fuel—a blend of 75% coal and 25% petroleum coke—into hydrogen and carbon dioxide (CO₂). The hydrogen will be used to fuel a combustion turbine, enabling net generation of 250 megawatts of electricity, enough power for more than 150,000 homes.

Approximately 90% of the CO₂ produced from the gasification process, or about 2 million tons per year, will be transported via pipeline to the Elk Hills oilfield, less than four miles away, and sequestered in an enhanced oil recovery (EOR) application.

The proposed plant will maximize use of non-potable water for its power production needs, preserving California’s limited fresh water sources.

The project is part of the Clean Coal Power Initiative (CCPI), a cost-shared collaboration between the federal government and private industry to increase investment in low-emission coal technology by demonstrating advanced coal-based power generation technologies prior to commercial deployment. The project will be cost-shared and administered by DOE’s Office of Fossil Energy and the National Energy Technology Laboratory.

The estimated capital cost for the project is approximately $2.3 billion. The federal cost-share is limited to $308 million, or just under 11% of the total project costs. The project consists of three phases: project definition (phase I), design and construction (phase II), and demonstration (phase III). Sequestration of 2 million tons per year of CO₂ is slated to begin by 2016.