Construction of the project at its existing power plant site in Edwardsport, Indianna, could begin as early as mid-2007 at an estimated cost of $1.3 - $1.6 billion.
Both companies are working with GE Energy and Bechtel Corp on an engineering and design study for the plant, which is expected to be completed by the second quarter of 2007.
Upon completion of the IGCC project, the coal and oil-fired units built between 1944 and 1951 will be retired.
Duke Energy Indiana president Kay E. Pashos commented: “In the Midwest, coal is plentiful and low-cost, and finding ways to burn it cleanly is fundamental to meeting our customers’ demand for power.”
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