Indiana teams with Illinois for FutureGen
BY CALEB HALE
THE SOUTHERN
southernillinoisan.com
Figuring two states can make a better pitch than one, Illinois and Indiana have teamed up in a bid for the federal government's $1 billion FutureGen project.
Officials in both states announced Wednesday they had signed a memorandum of understanding stating if the U.S. Department of Energy and the FutureGen Industrial Alliance decide to bring the low-emission, coal-fired power plant to the Midwest, the plant would be located in Illinois, while the carbon dioxide sequestration project - an integral part of the process - would be done in Indiana.
Hoosier state Gov. Mitch Daniels said Gov. Rod Blagojevich has shown dedication to bringing FutureGen to Illinois, and Illinois has "appealing geologic features" to support the energy generation facility. Likewise, Daniels said Indiana can play a key role in carbon sequestration.
"We have all the elements that are needed for this project: the natural resources, ideal geologic structure, and a commitment to clean coal as America's ace in the energy hole," Daniels said.
Blagojevich said the agreement should send a strong signal to the federal government the Midwest is ready to support a next-generation project of energy production through the Illinois coal basin.
"We share a coal basin that spans the Wabash and Ohio rivers, and we share a commitment to unlocking the full energy potential of Illinois Basin coal through coal gasification technology," Blagojevich said. "The only way to make coal king again is to make coal clean, which is what we are both committed to doing."
The Illinois-Indiana partnership may be an indicator the state is pointing the federal government toward the eastern border of Illinois for FutureGen, particularly along the Wabash or Ohio rivers.
Illinois Department of Commerce and Economic Opportunity Coal Director Bill Hoback said it makes financial sense to have carbon sequestration sites close to the power plant.
"It's going to be important that it be somewhere where there is not a large cost in moving the carbon dioxide. It may be along the river," Hoback said.
He stressed, however, the final decision on location would fall to the energy department and alliance. First they have to agree to locate FutureGen in Illinois at all. Illinois is one of 14 states that have expressed interest in hosting the project.
Federal officials and the alliance will begin forming a site selection list next year. Construction on the project is slated to begin within three years, with an operational start date by 2012. Federal investment on FutureGen is $700 million. Another $250 million is being applied by the coalition of private industries.
Hoback said Indiana's backing of Illinois for the power plant site only strengthens the state's position in the running. He indicated the state is in similar discussions with other states for partnerships.
caleb.hale@thesouthern.com
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