The FutureGen Alliance wants to buy part of an oil fired power plant in Illinois, USA, from Ameren Energy Resources Company (AER) so that it can continue its plans to develop a near-zero emissions power plant known as FutureGen 2.0.
The Alliance says that it is negotiating with AER over the purchase of part of the Meredosia Energy Centre, which is to host the $1.65 billion project. AER owns the Meredosia facility but said recently that it wanted to reduce its role in the FutureGen 2.0 project.
The Alliance also wants to take over a co-operative agreement between AER and the US Department of Energy (DOE) that would provide around $1 billion of stimulus funds to the project.
“Contingent upon DOE’s approval, we have an opportunity to lead the entire program, build on potential cost savings, and bring the power plant on-line in 2016 as planned,” said Ken Humphreys, chief executive officer of the FutureGen Alliance.
AER was to have been responsible for the power plant portion of the FutureGen 2.0 project, while the Alliance has committed to building the infrastructure for transporting and storing carbon emissions. Cost estimates submitted to the DOE earlier this year show that repowering the Meredosia power plant will cost $1.1 billion while building the carbon dioxide (CO2) infrastructure will cost $550 million.
The project partners say that they have identified potential cost savings of around $450 million that will be evaluated in the coming months. AER was to have been responsible for paying around 20 per cent of the private sector’s contribution to the retrofit of the Meredosia power plant.
The company said in November that it would not be able to meet its obligations, but said that it would make the plant available for the project.
FutureGen 2.0 will involve the upgrade of a unit at Meredosia to a coal-fired oxy-combustion plant that can capture around 90 per cent of carbon emissions. The CO2 will be transported by pipeline to a permanent storage facility.
The FutureGen Alliance consists of 11 members, including Peabody, Rio Tintom Consol Energy, Louisville Gas & Electric and Kentucky Utilities.
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