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Gold/Mining/Energy : Gasification Technologies -- Ignore unavailable to you. Want to Upgrade?

To: Dennis Roth who wrote (892)	6/10/2007 9:05:29 AM
From: Dennis Roth	Respond to of 1740

Coal plant a step ahead to cleaner air June 10, 2007 suntimes.com "The future of clean air starts now," said Doug Scott, director of the Illinois Environmental Protection Agency, after the approval of plans to build near Springfield the first large-scale commercial plant in the country to utilize an electricity-generating coal gasification process -- one that will dramatically reduce smog and mercury pollution. Everyone's for clean air, including President Bush, who at the Group of Eight meeting took his late push for it to a new level by agreeing to consider a European plan to cut greenhouse gas emissions in half by 2050; Gov. Blagojevich, who has pushed for tough new mercury emissions standards in Illinois, and both the city and state, which passed sweeping smoking bans. But as long as power companies resist spending money to overhaul their aging plants and switch from conventional coal-burning methods, we have to take statements like Scott's with a grain of salt -- or a speck of coal. That's not to say that the future that the IEPA envisions -- one in which it would take a full year for the $2 billion, 630-megawatt Taylorville Energy Center to match the amount of sulfur dioxide and nitrogen oxide pumped into the air by conventional plants in two weeks -- isn't within our grasp. Being that gasification plants can use Illinois coal -- this one would use 1.5 million tons -- utilities that switched to low-sulfur Western coal can give the local economy a boost by switching back. But there are major obstacles to overcome for these clean-air dreams to become reality. Gasification supporters are counting on the passage of a bill now being floated in Springfield that would require utilities to buy at least 5 percent of their electricity from gasification plants on a long-term basis. Though Commonwealth Edison hasn't yet said yes or no to the proposal, we could see imposing that requirement for a limited period in the early going as a way of getting this program up and running (2012 is the target date for the TEC opening). But if the Taylorville plant, to be built by Christian County Generation, and others aren't able to stand on their own after that initial period, what would be the point of giving them this early boost? There's also the nagging problem that carbon dioxide emissions, which can be captured by gasification technology, would remain at the usual levels. What to do about them? One industry solution is "carbon sequestration," pumping them underground and permanently trapping them in sandstone formations. That's already being done with natural gas. So why not do it with this plant? Especially because its purpose is to demonstrate clean air technology. None of this should distract from efforts to exploit renewable energy sources. As quaint as wind and solar power may seem, there are great possibilities in them, as recognized by another piece of legislation that would require 10 percent of the state's electricity to come from these sources by 2015. In a kind of ecological convergence, the Taylorville facility will be built among cornfields, a promising new source of energy. Whichever way the wind blows on gasification, it's clear that, finally, most Americans are on board for cleaner air, and momentum is building to make that a top priority.

To: Dennis Roth who wrote (892)	2/1/2008 7:52:03 AM
From: Dennis Roth	Respond to of 1740

Taylorville Energy Center Receives Final Air Permit, Environmental Appeals Board Denies Sierra Club Appeal January 31, 2008 12:02 PM Eastern Time businesswire.com Project Can Begin Once Illinois Lawmakers Act TAYLORVILLE, Ill.--(BUSINESS WIRE)--In a critical milestone for the development of clean coal technologies, the U.S. Environmental Appeals Board denied the Sierra Club’s appeal of the air permit granted to the Taylorville Energy Center. The project is now poised to move forward once enabling legislation is passed by the Illinois General Assembly. On June 5, 2007, following a two year application process, the Illinois EPA granted the first U.S. air quality permit for a commercially-sized Integrated Gasification Combined Cycle (IGCC) power generating facility to the Taylorville Energy Center (TEC), a $2 billion, 630-megawatt project being developed by Christian County Generation LLC (CCG). TEC would be the first clean-coal IGCC power plant built in the state, one of the first commercially sized plants of its kind in the country and among the most environmentally friendly coal plants in the world. Its technology dramatically reduces coal plant emissions and makes high-sulfur Illinois coal an environmentally viable fuel source. In denying Sierra Club’s appeal, primarily on the grounds that it failed to raise its objections in a timely way, the Environmental Appeals Board (EAB) noted that the Taylorville project’s environmental performance will set a new standard: CCG’s proposed IGCC facility is projected to have an SO2 removal efficiency of more than 99% and possibly as high as 99.8%. Similar improvements in pollutant removal will be obtained for particulate matter, nitrogen oxides, mercury and lead. EAB questioned Sierra Club’s arguments given the organization’s numerous past statements supportive of IGCC technology: For a number of years, Sierra Club has argued that IGCC technology should be adopted as the best available control technology for limiting air pollutant emissions from the burning of coal to produce electrical power. As managing member of the project, independent power producer Tenaska, Inc. is now poised to move forward once the Illinois General Assembly passes enabling legislation. “We’re pleased that the Board recognized the significant environmental and technological advances made in the development of the Taylorville Energy Center,” said Bart Ford, Vice President for Business Development at Tenaska. “Once we get this legislation passed, we’ll build this plant, bringing with it thousands of jobs and new hope for the Illinois coal industry.” In order to bring TEC and other IGCC projects to fruition in Illinois, Tenaska asked the Illinois General Assembly to change rules to allow developers to enter into long-term, cost-based contracts with large Illinois electric utilities. The proposed legislation, the Clean Coal Development Program Law, was developed jointly with the Citizen’s Utility Board (CUB) with an eye to protecting consumers. CUB supports IGCC projects like TEC because of their ability to keep prices in check by increasing the supply of baseload power. In addition to CUB, the proposal is supported by the Illinois Coal Association, Clean Air Task Force, AFL-CIO, American Lung Association of Illinois and others. On July 27, 2007, the Illinois Senate passed the Clean Coal Development Program Law 48-0. The House has yet to act on the legislation although representatives of Tenaska are currently engaged in discussions with senior staff from the offices of Illinois Speaker Michael J. Madigan and Illinois Attorney General Lisa Madigan. Commenting on the discussions, Ford added, “We feel like we are picking up some momentum now. Our talks this week in Springfield have been positive and constructive.” Phil Gonet, president of the Illinois Coal Association stressed the importance of the project: “Given the unfortunate decision yesterday on FutureGen, the Taylorville Energy Center in now critical to revitalizing the Illinois coal industry. It’s time to get this legislation done and get this project moving.” Details on the project, the technology and the law, along with numerous editorials and newspaper articles can be found at cleancoalillinois.com. =========== Challenge to Ill. Energy Plant Rejected Jan. 31, 2008, 1:53PM chron.com TAYLORVILLE, Ill. — The U.S. Environmental Protection Agency appeals board has rejected a challenge to a coal plant slated for central Illinois, clearing the way for the facility to be built once it receives final legislative approval. The Sierra Club appealed the $2 billion plant last summer, arguing the state EPA didn't do enough to limit the project's global warming emissions. But the federal regulators struck drown the appeal Monday, saying the Sierra Club raised its concerns too late in the review process. The power-generating plant, called the Taylorville Energy Center, is being built by Christian County Generation LLC. Independent power producer Tenaska is Christian County Generation's managing partner. The plant is intended to turn Illinois' high-sulfur coal into a synthetic gas for use in producing electricity and will become the state's first clean-coal plant to use what's known as the "integrated gasification combined cycle." "We're pleased that the board recognized the significant environmental and technological advances made in the development of the Taylorville Energy Center," Bart Ford, a Tenaska vice president, said in a statement Thursday. The Illinois Senate approved a measure this summer that would allow the plant's developers to enter long-term contracts with electric utilities. Tenaska officials still are negotiating with House leaders over the bill. Officials have said they hope the plant could begin operating as soon as 2012.

To: Dennis Roth who wrote (892)	2/26/2008 6:33:49 AM
From: Dennis Roth	Respond to of 1740

Illinois Proponents 'Cautiously Optimistic' on $2.5 Billion Taylorville Energy Center 2/25/2008 midwestbusiness.com CHICAGO - While proponents of cleaner burning coal in Illinois still have one large-scale project in the works, now it is up to Illinois state legislators to approve rather than the Bush administration. The proposed Clean Coal Program Law is legislation that will allow Omaha, Neb.-based builder Tenaska to continue plans for the Taylorville Energy Center, which is a $2.5 billion, 630-megawatt clean coal plant to be built in central Illinois (a mile northeast of Taylorville). If built, it will be one of the first commercially sized integrated gasification combined cycle (IGGC) power plants of its kind in the country. This process releases less harmful gases into the environment by converting burning coal byproducts into cleaner fuel. While the clean air legislation passed unanimously in the Illinois Senate on July 27, 2007, it has not seen any movement in the Illinois House since. One reason is that Illinois attorney general Lisa Madigan said the bill lacked consumer protection. "We had some ups and downs [in 2007] with the legislation," said Bart Ford, vice president of business development at Tenaska, in a MidwestBusiness.com interview. "It went over to the Illinois House for concurrence. That's really where it has been sitting since then." Ford says Tenaska has become more encouraged in the past several weeks of the legislation's potential passage. "We have reengaged the speaker's staff and the attorney general's staff. I think they are working hard at this. They are working in good faith and are capable people," Ford said, adding that he's confident all parties will find something that works for them. The reason why Tenaska can't build its plant now is that there won't be return on investment due to the fact that Illinois is a deregulated energy state. This means power companies can't enter into long-term energy contracts with a power distributor. The longest a contract can be is 36 months. Tenaska can produce the energy but will not have a buyer - such as Commonwealth Edison (ComEd) - to distribute the cleaner burning power to the consumer. If the plant were built now, Tenaska couldn't sell the energy that's produced for a profit. As the plant is said to be environmentally friendly and will be a cost benefit for consumers, many advocates are getting behind the project. These include the Illinois Lung Association, the Chicago-based Citizens Utility Board (CUB) and the Boston-based Clean Air Task Force. "If this is done correctly, we think it will lower prices for consumers," said CUB executive director David Kolata in an interview with MidwestBusiness.com. "The studies we've seen suggest that the savings could be as much as $190 million a year." CUB is in support of the Taylorville plant because of its benefit for consumers. The group worked with Tenaska on the initial legislation. "We think it's something that's good for the environment and good for economic development in central and southern Illinois. If it's financed correctly with cost-based rates, we think it's also good for consumers," Kolata said. Kolata says he is 'cautiously optimistic' as to whether or not the legislation will pass. In late Jan. 2008, Tenaska won an appeal for the plant's air quality permit. The permit was initially granted on June 5, 2007 but was appealed by the Sierra Club. John Thompson - director of the coal transition project for the Clean Air Task Force, which supports building the Taylorville plant - says the new legislative session is bringing about change. He hopes the clean coal law will pass. "I don't try to predict what the legislature will do but the dynamic has certainly changed with FutureGen being so uncertain," Thompson said in an interview with MidwestBusiness.com. "If it's not Taylorville, then what?" By STEPHANIE HULS Staff Writer steph@midwestbusiness.com

To: Dennis Roth who wrote (892)	3/2/2008 6:31:43 AM
From: Dennis Roth	Read Replies (1) \| Respond to of 1740

Omaha firm places $3 billion bet on Sweetwater power plant Coal-fired plant would capture CO2, sell it to operators for EOR projects Mella McEwen Midland Reporter-Telegram 03/02/2008 mywesttexas.com An Omaha company is placing a $3 billion bet in West Texas in hopes of hitting a trifecta. But company officials are confident they're holding a winning ticket. Tenaska Inc. has just announced plans to develop on a 1,919-acre tract east of Sweetwater and north of Interstate 20 an advanced coal-fueled electric generation plant that is also able to capture up to 90 percent of the carbon dioxide (CO2) that would otherwise be emitted into the atmosphere. The captured CO2 would be sold to oil and gas producers for use in enhanced recovery projects. Over $2 billion will be spent in construction with the total cost of the plant just over $3 billion. The plant would create up to 2,000 jobs at peak construction and over 100 permanent jobs during its operation. It would generate 600 megawatts, enough to power about 600,000 homes. David Fiorelli, president and chief executive officer of Tenaska's Business Development Group, explained that the Sweetwater site was chosen because "We wanted to be reasonably close to the EOR markets. We could have moved 50 to 100 miles west and been in the middle of the EOR market, but we felt it was important to have access to more than one rail line. We will be using a significant amount of coal from the Powder River Basin and our experience and the experience is of others is it's best to have more than one rail carrier so there is competition and you have reduced costs. This is a unique site in that we have Union Pacific and Burlington Northern Santa Fe on the borders of our property and we won't have to construct additional rail lines." When the company announced the proposed plant, Fiorelli reported that an air permit application had just been filed with the Texas Commission on Environmental Quality. Word has just been received, he said, that the commission deemed the application complete, "which sets a statutory timeframe to act on the permit. The commission now has a nine-month period to act on the application, with the ability to extend that period another three months." While the air permit application is pending, Fiorelli said the company is proceeding on other fronts. "We retained an engineering firm last year to do preliminary engineering on the coal power plant and we have retained a separate engineering firm to work on the CO2 portion of the plant." A final decision on building the plant will be made in 2009, with completion set for 2014. He said several factors will play into the final decision, including government action. "One of the things that's important to point out is the fact that we're assuming in our economics that there will be some sort of federal climate legislation related to CO2 emissions," Fiorelli said by phone from his Arlington office. He cited the Lieberman-Warner bill that would establish a carbon market and provide incentives for projects like Tenaska's Trailblazer Energy Center. He acknowledged that the Lieberman-Warner bill "could take a different form" but said company officials are confident some form of legislation will be signed into law. "Our choice was, rather than wait until a bill passes, analyze it and decide to take action, we decided the odds were strong something like Lieberman-Warner would pass were high enough that we moved into development so we would be ready to move ahead with financing and construction." The second part of Tenaska's trifecta bet is a market for the CO2 and the electricity generated at the plant. Fiorelli said the company has already had discussions with a number of operators interested in purchasing the CO2 who tell him they are anxious for new avenues of supplies. To deliver its CO2, he said the company could construct a pipeline to deliver the CO2 to customers or to an existing CO2 pipeline, or it could sell the CO2 directly from the plant site to another party experienced in transporting CO2. Company officials estimate that the volume of CO2 expected to be sold from the plant could be used to recover enough oil to add over $1 billion a year of oil production to the Texas economy. Part three of the trifecta bet is the technology, and Fiorelli said the company is confident CO2-capture technology will work. The proposed plant, he acknowledged, is a significant scale-up from what has been done before, but capture technology has developed significantly in the last 10 to 15 years and "there's no reason to think there's a limit on its improved efficiency." In fact, he said, the company is studying multiple technologies for removing CO2 that are different from each other, and discussing those technologies with vendors. The plant is so early in the permitting process, he said, that company officials don't yet have to choose a technology. Tenaska, he said, has also been watching developments in the proposed FutureGen project but the Sweetwater plant will differ in that it will use modern coal pulverization technology rather than coal gasification. But, he said, the company will likely respond to the Department of Energy's Request for Information for commercial power projects that include CO2 sequestration. "There are indications the DOE will consider sequestration from technology other than gasification," he said. "Ironically, our other project is an IGCC (Integrated Gasification Combined Cycle) plant and is located in Illinois." Tenaska has also had discussion with environmental groups, which have traditionally opposed coal-powered plants. But Fiorelli said he has found them disposed to proposals that would sequester the CO2 the power plants generate. They are also proponents, he said, of figuring out what to do with existing coal-powered plants and feel the technology developed for the Sweetwater plant could be adapted by other plants. Fiorelli is confident the $3 billion wager on Texas electricity markets will pay off. "The electricity market in Texas is overly dependent on natural gas for fuel," he said. "The market is working to add non-natural gas generation, primarily additional coal-fired plants, wind and a number of nuclear projects. There will be a move towards more non-natural gas-fired generation in Texas." ------ Mella McEwen can be reached at casell@mrt.com.