Alberta and Swan Hills Synfuels close on $285M in funding for CO2 capture from underground coal gasification project
The Government of Alberta and Swan Hills Synfuels recently signed a final funding agreement for a carbon capture and storage (CCS) project that will capture carbon dioxide (CO2) from an underground coal gasification (UCG)process. The two had signed a letter of intent on the funding in December 2009. (Earlier post.)
The in-situ coal gasification project will tap into a deep, unmineable coalbed near Swan Hills and convert the coal into syngas which will then be used to fuel a power plant. The project will also capture up to 1.3 million tonnes of CO2 per year that will be used for enhanced oil recovery in the area.
We are excited to be building a baseload generating plant that will provide the reliability and economic stability that coal-fired power has brought to Alberta for many years, but with greenhouse gas emissions lower than that of comparable natural gas-fired generation.—Martin Lambert, CEO of Swan Hills Synfuels
The province has committed $285 million to the Swan Hills Synfuels project as part of its $2 billion CCS funding program. Construction is expected to begin in 2013 with carbon capture beginning in late 2015.