The power industry is risk averse. It usually has to partner with the public sector that provides funding and technical expertise. Fruitful partnerships are the result of industry's business sense combined with government's willingness to allow researchers to reach beyond their limits to innovate.
In the area of coal, the National Energy Technology Laboratory (NETL) is the go-to guy. The cornerstone of all NETL's undertakings right now is the FutureGen, which would be the most advanced coal-fired power plant ever invented. The agency's main ally is the FutureGen Alliance that is made up of major utilities made up of major utilities and coal companies. Various contractors, meanwhile, are assigned to bits and pieces of the deal.
FutureGen would be a zero-emission coal-fired power plant that could also capture and sequester carbon dioxide (CO2) emissions. It is a nearly $1 billion undertaking. Of that, the coal industry will pony up $250 million while foreign governments -- China, India and Korea are all involved -- will contribute $80 million. The U.S. government will cover the roughly $700 million balance. The initial plant would generate 275 megawatts of electricity, which if successful, could be replicated around the country.
FutureGen got its start in 2000 and was officially launched in 2004. The goal is to be up and running by year-end 2012. Essentially, there are three basic elements to the project that include the capacity to gasify coal so that it would be cleansed of all the impurities before it leaves the smokestack as well as the abilities to develop hydrogen and to capture and bury CO2, all of which would address the global warming issue.
If the hydrogen can be separated from the other the elements, it could then be used to power everything from vehicles to electric generators. And, if the carbon could be sequestered and bottled up, then it would put a shine to coal's future - and perhaps win-over the environmental community. Pilot projects show that each feature is doable. But, the challenge is integrating each of those attributes into one generation facility. It's a noble goal. According to the Department of Energy, the United States mines more than 2.8 million tons of coal each day and if it did not, the nation would have double its natural gas production. Coal remains cheap and plentiful, with 250 years worth of reserves. It comprises 51 percent of the electricity generation.
The Elements
Coal's prominence, however, is threatened by the strong emphasis on minimizing the release of heat-trapping emissions. According to the Congressional Research Service, coal is responsible for about a third of all CO2 emissions. It also releases double the other pollutants regulated by the Clean Air Act that include sulfur dioxide and nitrogen oxide. "Let's face it: We are going to use coal," says Richard Bajura, director of West Virginia University's National Research Center for Coal and Energy. "I do think coal can be carbon neutral."
To build FutureGen and to particularly sequester CO2, "we must know what the technical risks are and how to finance them and what it will all cost," adds Ken Humphreys, director of carbon management at Columbus, Ohio-based Battelle, one of the leading private enterprises at work on the project. "We are on an aggressive path to move it from a pilot scale to a fully integrated scale. I don't see it as far off."
Those two experts agree that the immediate goal is to perfect the gasification technologies - the ones that convert coal to fuel gases before the sulfur, mercury and CO2 would be removed. Right now that process is expensive and fraught with obstacles. But, if it can be proven, then the CO2 would be more concentrated and therefore much easier to capture and store.
Four such coal gasification plants are now operating: two in the United States and two in Europe. Currently, there are about 30 projects on the drawing board, although no one expects more than a handful to actually reach fruition. American Electric Power, Duke and Southern are among the utilities pursuing the technology, all with huge coal fleets.
Xcel Energy has another project in mind. It wants to construct a coal gasification plant that has the ability to capture and store carbon, and to begin the process by 2010. It is now conducting feasibility studies and acquiring partners for a 350-megawatt plant that would cost as much as $1 billion. The company said it expects the coal gasification elements to add 10-20 percent more to the typical price tag while the carbon sequestration features would contribute another 35-45 percent.
As for FutureGen, it is on target to meets its 2012 operational timeline. The FutureGen Alliance will make its final site selection this year among four places that are located in Texas and Illinois. It will soon after make its technology choices. In addition to lending money and its scientific brainpower, NETL will also try to ensure the selection process is done fairly through a series of audits.
"The project and the timeline are very realistic, but challenging," says Mike Mudd, CEO of the FutureGen Alliance in Columbus, Ohio. "It is critical we meet our deadlines. We always try to identify and resolve situations that might cause delays. If we can maintain that perspective, we will be on line in 2012."
FutureGen's partners are all determined. If the project works, it would be the ultimate energy-driven public-private partnership -- and one that would also lead to the subsequent development of other ultra-clean coal projects.
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