US DOE to Invest Up to $989M in Three Carbon Capture and Sequestration Projects; Total Project Value of $3.18B
The US Department of Energy has selected three new projects with a total value of $3.18 billion to accelerate the development of advanced coal technologies with carbon capture and storage at commercial-scale. DOE’s 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 Department’s Clean Coal Power Initiative (CCPI).
Projects selected today demonstrate advanced coal-based technologies that will capture and sequester or put to beneficial use carbon emissions. The selections demonstrate technologies that:
Make progress toward a target CO2 capture efficiency of 90%;
Make progress toward a capture and sequestration goal of less than 10% increase in the cost of electricity for gasification systems and less than 35% for combustion and oxycombustion systems;
Capture and sequester or put to beneficial use an amount of CO2 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. The new 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. (Earlier post.)
Clean Coal Power Initiative Round III Selections include:
American Electric Power Company, 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% of the CO2 (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, WV. (Earlier post.)
The captured CO2 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 CO2 in two separate saline formations located approximately 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 Services, Inc., Southern Company Carbon Capture and Sequestration Demonstration. Southern Company Services (SCS) will retrofit a CO2 capture plant on a 160 megawatt flue gas stream at an existing coal-fired power plant, Alabama Power’s Plant Barry, located north of Mobile, AL. The captured CO2 will be compressed and transported through a pipeline, and up to one million metric tons per year of CO2 will be sequestered in deep saline formations.
Southern Company Services will also explore and utilize potential opportunities for beneficial use of the CO2 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, LLC, Texas Clean Energy Project (TCEP). Summit Texas Clean Energy, LLC will integrate Siemens gasification and power generating technology with carbon capture technologies to effectively capture 90% of the carbon dioxide (2.7 million metric tons per year) at a 400 megawatt plant to be built near Midland-Odessa, TX. The captured CO2 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 (EOR) operations.
The Bureau of Economic Geology (BEG) at the University of Texas will design and assure compliance with a state-of-the-art CO2 sequestration monitoring, verification and accounting program.
DOE share: $350 million; project duration: 8 years.