Taylorville energy center gets OK to begin construction
Associated Press
Published June 5, 2007, 5:11 PM CDT
chicagotribune.com
TAYLORVILLE, Ill. -- A planned $2 billion, 630-megawatt plant that would turn high-sulfur Illinois coal into a synthetic gas for use in producing electricity has received its air permit, officials announced Tuesday.
But hurdles still remain before the plant is constructed and operational.
Gov. Rod Blagojevich said in a statement the Illinois Environmental Protection Agency issued the permit to Christian County Generation LLC for the Taylorville Energy Center, the power-generating plant expected to use what's known as the integrated gasification combined cycle.
Using such technology, clean-burning synthetic gas that is created would be used to produce electricity. And unlike conventional coal-fired power plants, IGCC plants have the potential to cut greenhouse gas emissions by capturing carbon dioxide that can be permanently injected below ground for storage -- a process called sequestration.
The project, near this central Illinois city of roughly 11,300 residents, still requires lawmaker help. Rep. Gary Hannig, a Taylorville Democrat, has sponsored the Clean Coal Program Law, which would let developers enter into long-term, regulated cost-based contracts with large Illinois electric utilities.
If that measure passes this session, construction on the plant could begin later this year, with operations beginning as soon as 2012, officials say.
The plant, once built, also would require an EPA operating permit before being fired up, said Maggie Carson, a spokeswoman for the Illinois EPA.
The project would create 1,500 construction jobs, 120 permanent jobs at the plant and 160 new mining jobs to supply the 1.8 million tons of Illinois coal needed each year to power more than 600,000 households, Blagojevich said.
"This is a landmark day for the state of Illinois and the Taylorville Energy Center. This permit sets the standard by which other IGCC power plants will be judged," said Greg Kunkel, vice president of independent power producer Tenaska, Christian County Generation's managing partner.
A Northern Illinois University study released last month found that the plant, once running, would add $356 million a year to the area's economy.
"Our analysis indicates central Illinois will also benefit from a regional ripple effect that will create hundreds of new positions in industries such as retail, hospitality and health care." John Lewis, a Northern Illinois University economist and the report's lead author, has said.
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Christian County Generation LLC: cleancoalillinois.com
Copyright © 2007, The Associated Press
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Tenaska obtains Illinois clean-coal plant permit
Tue Jun 5, 2007 5:35pm ET
today.reuters.com
NEW YORK, June 5 (Reuters) - Tenaska Inc. said on Tuesday that Illinois' state environmental agency issued an air permit for the nation's largest clean-coal power plant, moving the $2 billion project a step closer to construction.
At 630-megawatts, the proposed Taylorville Energy Center, an integrated gasification combined cycle (IGCC) plant, would be more than twice as large as existing IGCC demonstration plants in the United States. Construction could begin this year in Christian County in central Illinois, if Tenaska can obtain favorable legislation.
Commercial operation could begin in 2012.
"This plant will be the standard by which others will be judged," said Bill Braudt Jr., general manager of business development for privately-held Tenaska, based in Omaha, Nebraska.
Because the plant will burn Illinois coal and use advanced coal technology to reduce emissions, it has garnered support from a number of groups, including the Illinois governor, mining, environmental and consumer groups.
The state has pledged $500 million in low cost bonds to help finance the plant.
"It does help to have this tremendous support," Braudt said.
The IGCC process turns coal into a gas before so that sulfur and mercury can be removed before the gas is burned to produce electricity.
Taylorville is being designed to allow for the capture of carbon dioxide emissions in the future when the technology becomes available.
The construction permit is a "big milestone," Braudt said. The next hurdle needed to advance the project is a change in state law to allow Illinois utilities to sign long-term contracts for power.
"You can't pay for a $2 billion plant in three years," Braudt said.
Illinois lawmakers have extended their session to deal with issues surrounding rising power prices as the state attempts to complete a transition to a competitive power market.
In exchange for financial assistance from the state, Tenaska, an independent power producer, will recover its investment in Taylorville through a regulated rate set by the state, rather than a market-based rate.
"We believe the most likely way to get Taylorville built will be to accept a regulated rate of return," Braudt said.
One analysis shows the Taylorville plant could save Illinois consumers $190 million a year by displacing higher-cost, natural gas-fired generation, Braudt said.
© Reuters 2007. All Rights Reserved. |
