The Department of Energy (DOE) today announced it has received proposals for projects in a new generation of clean coal projects, valued at nearly $6 billion, in the latest phase of the President’s Clean Coal Power Initiative (CCPI). 

“Industry has enthusiastically responded to the Department’s latest clean coal solicitation calling for technologies that would help make it possible for coal to remain a cornerstone of our domestic energy portfolio, particularly for power generation, and to continue that role into the long-term future,” Secretary of Energy Spencer Abraham said today. “We are pleased these latest proposals encompass an advanced generation of technologies that will help us meet national priorities set forth by President Bush in his Clear Skies and Global Climate Change objectives.”

The Round 2 proposals represent the second wave of technologies offered by industry in response to President Bush's pledge to invest up to $2 billion in federal funding over 10 years to advance technologies that can help meet the nation's growing demand for electricity while simultaneously providing a secure and low-cost energy source and protecting the environment. Earlier this year, eight projects were selected in Round One, the initial phase of the CCPI.

These newest proposals request about $1 billion in federal cost sharing for projects. Those eventually selected will demonstrate (1) coal gasification system advances that enhance efficiency, environmental performance and reliability, and (2) advancements that support the President's Clear Skies Initiative to reduce power plant emissions, particularly mercury, by about 70 percent by 2018, and the Global Climate Change Initiative to reduce carbon emissions growth over the next ten years.

The projects will also support the technical foundation for the FutureGen Initiative to create the world's first zero-emissions, coal-based power and hydrogen production plant, which will include carbon dioxide removal and sequestration.

Ninety-seven percent of the proposals offer advancements for power generation based on commercial demonstrations of gasification technology and improvements to efficiency, reliability, availability, environmental performance, and economic performance. These proposals also present opportunities to demonstrate potential readiness of energy technologies for carbon dioxide management. 

Other proposals offer approaches for mercury and multi-pollutant control and for efficiency improvements that encompass coal treatment methods and post-combustion technologies, as well as integrated combustion and control system advancements applicable to needs of the existing fleet and future energy plants.  These environmental technologies have potential applicability to diverse sizes of coal combustion operations.

DOE will review each proposal received under the CCPI Round 2 solicitation against criteria established in the solicitation as prerequisites for detailed evaluation. Those prerequisites include the proposer’s plan to share at least 50% of the total allowable cost of the proposed project, commitment to repayment of the government’s investment in the demonstration project, and other aspects of the proposed project, including project site, coal use, and electricity production.  Qualifying proposals will be subject to detailed evaluation, and DOE anticipates announcement of selections by the end of 2004.

Following is a list of CCPI Round 2 proposers and the location of their projects:

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      Alaska Cowboy Coal Power Consortium, Anchorage, Alaska
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      Basin Electric Power Cooperative, Stanton, North Dakota
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      Breen Energy Solutions, Pittsburgh, Pennsylvania
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      ClearStack Combustion Corporation, Hutsonville, Illinois
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      EnviRes LLC, East St. Louis, Illinois
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      Excelsior Energy Inc., Hoyt Lakes, Minnesota
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      FuelCell Energy, Inc., Kingsport, Tennessee
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      Medicine Bow Fuel & Power LLC, Medicine Bow, Wyoming
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      Minnesota Power, St. Louis County, Minnesota
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      NeuCo, Inc., Baldwin, Illinois
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      Peabody Energy, Milan, New Mexico
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      Pegasus Technologies, Inc., Jewett, Texas
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      Southern Company Services, Orange County, Florida

Additional information on the proposals is available from the Energy Department's National Energy Technology Laboratory's web site at www.netl.doe.gov/coalpower/.