US technology company Powerspan is take the development of its carbon dioxide capture technology forward with the help of $50 million in new financing from a group of new and returning investors.
Powerspan says that it will use the investment to commercially deploy its ECO2 capture technology, which it started developing in 2004 in co-operation with the US Department of Energy’s National Energy Technology Laboratory. Its new backers include Tenaska Energy, Alliance Bernstein LP and Persimmon Tree Capital LP.
Powerspan’s ECO2 technology is designed to capture CO2 emissions from coal fired power plants using an ammonia-based scrubbing process. It is currently undergoing pilot tests on a 1 MW scale at a power plant in Ohio and Powerspan is planning to launch a commercial-scale demonstration in North Dakota in 2012.
Returning investors include FirstEnergy Corp, Fluor Corporation and NGEN Partners LLC. Powerspan has secured the financing as the US Congress prepares to debate proposed legislation on a nation-wide greenhouse gas emissions trading scheme.
“This financing round further validates Powerspan as a leading provider of carbon capture technology,” said Powerspan CEO Frank Alix. “CO2 capture technology is a vital climate change mitigation tool for reducing CO2 emissions from coal-fired power plants, the world’s leading source of electricity.”
“Tenaska has assumed a leadership role in the development of power plants with carbon capture and sequestration technologies,” said Mike Lebens, President and CEO of Tenaska’s Engineering & Operations Group. “We view our financial commitment to Powerspan as a sound investment in a promising CO2 capture technology along with an opportunity to learn more about that cutting-edge technology as we explore future development projects in the energy industry.”
Powerspan is currently testing its ECO2 technology at FirstEnergy’s R. E. Burger plant in Shadyside, Ohio. In March 2008 it announced plans to carry out a 120 MW commercial demonstration at Basin Electric’s Antelope Valley Station (AVS) near Beulah, North Dakota.
The AVS demonstration project is designed to capture approximately 1 million tons of CO2 per year. The captured CO2 will be fed into an existing pipeline and used for enhanced oil recovery purposes.
