News

Excelsior Energy Files PPA Petition for Mesaba IGCC

Excelsior Energy has filed a petition with the Minnesota Public Utilities Commission for approval of a 603 megawatt Power Purchase Agreement to provide Northern States Power with electricity from its Mesaba IGCC Project under development in Minnesota. Download the press release announcing the petition. The full petition can be accessed through the Excelsior website.

FutureGen Industrial Alliance, DOE Enter into Agreement (12/6/05)

The FutureGen Industrial Alliance,. Has announced that it has entered into a cooperative agreement with the U.S. Department of Energy (DOE) to develop and site in the United States the $1 billion FutureGen gasification-based plant.

The Alliance has voluntarily committed to more than $250 million to develop the plant. Initial plans call for announcing a site selection process in 2006, construction to begin within three years and startup in 2012. The linked press release provides additional details, including a list of Alliance members.

EIA Sees Much Higher Oil Prices; Stronger Role for Coal; Lower LNG Imports Than in Prior Forecasts (12/14/05)

The newly released preliminary 2006 Annual Energy Outlook from the U.S. Energy Information forecasts dramatically higher oil prices than did the 2005 edition. The U.S. price for imported oil is projected to be approximately $54 per barrel in 2025, $21 per barrel higher than the prior forecast.

This is expected to lead to greater coal use, including the manufacture of coal-liquids in the U.S. during the forecast period.

The 2006 Outlook also foresees much lower imports of LNG in 2025 than the prior year's report: from 6.4 tcf to 4.1 tcf.

The preliminary 2006 AEO is available on the EIA web site. The complete version will be available in February 2006.

(source: EIA)

Power-Gen IGCC Presentations Available (12/12/05)

The presentations from the Power-Gen International IGCC session, held December 8 in Las Vegas, NV, are now available in the web site's Library. We wish to thank Pennwell for allowing the Council to post the files.

World Gasification Survey Report Available (11/22/05)

The report on the 2004 World Gasification Survey , first released at the 2005 Gasification Technologies Conference, is available in PDF format on this site. If you wish to receive a hard copy version of the report, please email Ms. Marie Kent ( mkent@gasification.org ) with your name and mailing address.

Peabody Energy and ArcLight Capital Explore Sites for Major Coal-to-Natural Gas Project (11/2/05)

Peabody Energy today announced that it has entered into a memorandum of understanding with ArcLight Capital Partners, LLC to advance project development of a commercial-scale coal gasification project in Illinois that would transform coal into pipeline- quality synthetic natural gas. The initial project would be designed with ConocoPhillips "E-Gas(TM)" Technology, featuring an oxygen-blown gasification system. ConocoPhillips and Fluor have begun preliminary engineering design work for the project. View the full press release here.

AEP IGCC FEED Package Moves Forward (9/29/05)

American Electric Power has signed an agreement with GE Energy and Bechtel Corporation to begin the front-end engineering design (FEED) process for a commercial-scale IGCC plant in the 600-megawatt range. This is the third gasification-based FEED package announced this year, following that of Cinergy/Vectren (see immediately preceding article) and the Southern Illinois Clean Energy Center in April. See the AEP, and GE/Bechtel press releases for details.

Cinergy Beginning FEED Package for Indiana Coal-Based IGCC (9/20/05)

Cinergy/PSI announced today that it has decided to begin the preliminary engineering and design of a commercial, integrated gasification combined cycle (IGCC) generating station in partnership with Vectren Corporation. The companies will now negotiate a contract with General Electric Company and Bechtel Corporation for a 600 MW plant in Southwestern Indiana. The full preliminary engineering and design study is expected to take about a year and will result in site-specific data for construction of the plant. A final decision on construction will be made after the engineering study is complete and regulatory approvals have been received. See the linked press release for more information.

FutureGen Industrial Alliance Created (9/15/05)

Its seven founding members have announced the creation of the FutureGen Industrial Alliance, a non-profit company that will partner with the U.S. Department of Energy to facilitate the design, construction and operation of the gasification-based near-zero emissions coal-based polygeneration power plant. The Alliance is working with the DOE to reach a final agreement for the FutureGen initiative. Once the agreement is completed the parties will proceed to site selection and plant design. The FutureGen Industrial Alliance press release provides additional information about the FutureGen effort and the Alliance.

President Signs Energy Policy Act of 2005 (8/11/05)

Linked are the 2005 Energy Policy Act as well as a summary of the gasification-related sections.

IGCC Tax Credit Enacted in Indiana (5/10/05)

Indiana Governor Mitch Daniels signed into law on May 9 a bill authorizing the "Coal Gasification Technology Investment Tax Credit". The amount of the state tax credit would be equal to 10 percent of the first $500 million invested in a qualifying IGCC facility and 5 percent of investment above that amount. The credit will apply to newly constructed IGCC facilities in Indiana that use 100% Indiana coal. See the attached document for the details of the new law. Search for "Chapter 29" to find information on the gasification tax credit. The credit takes effect January 1, 2006.

GTI and Siemens Westinghouse Demonstrate Ultra-Cleaning of Syngas (5/6/05)

Gas Technology Institute (GTI) has successfully completed a series of tests in support of a Siemens Westinghouse Power Corporation (SWPC) program for the development of novel syngas cleaning systems. The objective is to economically achieve the most stringent cleanup requirements for sulfur species, halide species, mercury, and particulate matter in advanced, near-zero emission, efficient multi-production energy plants. See the attached press release for more information.

Coal Gasification Project Enters Design Phase (4/15/05)

ConocoPhillips announced on April 4 that work has begun on the Front End Engineering Design (FEED) package for the Southern Illinois Clean Energy Center, an Integrated Gasification Combined Cycle (IGCC) facility. The facility will use ConocoPhillips' E-Gas Technology to process Illinois coal, generating approximately 600 megawatts of electricity and 95 million cubic-feet-per-day of pipeline-quality substitute natural gas at a minemouth site in Williamson County, Ill. Under the E-Gas Technology alliance agreement, the FEED package will be executed by ConocoPhillips and Fluor Corporation, using. Siemens SGT6-5000F combustion turbines. Currently 178 of these turbines operate on natural gas in North America. The conversion to the IGCC application will be modeled on similar Siemens hardware that operated successfully for 125,000 hours in conjunction with the E-Gas Technology gasification system at other facilities. For more information, see the attached press release.

Suncor Oil Sands Upgrader Proposal Includes Gasifier (3/23/05)

Suncor Energy's application to build a new, $5.9 billion oil sands upgrader, filed on March 14 with Alberta government regulators, includes a request to construct and operate a petroleum coke gasifier as a component of the project's fuel supply. The gasifier is expected to process about 20 percent of the proposed upgrader's petroleum coke into synthesis gas, which would be used to supply hydrogen and fuel for the new plant. The driving force for the gasifier is to reduce reliance on natural gas at the plant and to add value to petcoke generated at the plant. The company also said it plans to pursue strategies such as carbon dioxide capture and geological sequestration, but gave no timetable for other details. Construction of the gasifier would add an incremental $600 million to the total cost of the project. Suncor officials cautioned, however, that this cost estimate is very preliminary and subject to change. A decision by the Alberta regulators is expected to take approximately two years and construction of the new facility is slated to begin in 2007. See the press release from Suncor for additional details.

EPA Issues CAIR (3/13/05)

On Thursday, March 10, one day after the Senate Environment and Public Works Committee deadlocked over the Bush administration's "Clear Skies" proposal, the Environmental Protection Agency enacted a broad new rule targeting airborne pollutants from power plant emissions in 28 states. The Clean Air Interstate Rule (CAIR), which will be phased in over the next decade, sets limits for the release of sulfur dioxide and nitrogen oxides from power-plant smokestacks in Midwestern and eastern states and the District of Columbia. To comply with the new regulations, many plants will be required to install new scrubbers and other emissions-capture equipment. Plants that cannot meet the deadlines will be allowed to buy credits from those that are ahead of schedule. The Senate committee could not resolve differences on how to balance environmental and consumer concerns against the cost to industry in the Clear Skies bill. For more CAIR details visit the EPA site. Next in line: the EPA plans to release a rule restricting mercury emissions from power plants.

U.S. DOE IGCC R&D; Budget Up for Coming Fiscal Year (2/09/05)

The newly released fiscal year 2006 budget providing funds for the U.S. Department of Energy's fossil energy research and development program provides $56.45 million for IGCC, a 23% increase over the prior fiscal year. The linked document provides details on funding levels and program/project descriptions for the Central Systems program, under which IGCC operates.

Wabash River IGCC Under New Ownership (2/09/05)

Global Energy Inc. and Wabash Valley Power Association have announced that they have formed SG Solutions LLC which will own and operate the Wabash River IGCC plant in West Terre Haute, Indiana. SG Solutions LLC (SGS) is owned 50/50 by Wabash Valley Power Association and Wabash River Energy, a unit of Global Energy Inc. See the attached press release for further details. In a related matter, Cinergy/PSI has entered into a memorandum of understanding with the Wabash Valley Power Association to purchase gas produced from the plant. See the attached press release for further details. Top of the page