U.S. DOE puts out the call for new CCS projects

The U.S. Department of Energy has released an official funding opportunity announcement to invest $1.3 billion in multiple commercial-scale carbon capture and storage projects as part of the department's restructured FutureGen program.

In January, the DOE announced that it had pulled out of funding the existing, single FutureGen project after costs spiraled upward to $1.8 billion (see FutureGen goes FutureBust).

The Energy Department was responsible for the majority of the funding of the original FutureGen, which was supposed to be a $1 billion project.

The FutureGen Alliance, made up of 13 energy and mining companies from around the world, recently reiterated its decision to try to keep the original project alive.

Last December, the alliance picked a site in Illinois for the project, designed to gasify and store carbon deep underground, as well as produce hydrogen (see FutureGen to build plant in Mattoon, Ill.).

Instead of funding one big project, the DOE has said it will look for new, multiple, 300 megawatt projects across the country.

"This announcement brings us one step closer towards the installation of carbon sequestration technology on commercial-scale clean coal power plants," said Bud Albright, under secretary of energy.

The DOE said it's looking to invest in integrated gasification combined cycle or other clean coal power plants with carbon capture and storage technology.

The department said it expects $290 million will be available for funding of selected cost-shared projects through fiscal 2009, with an additional $1.01 billion to be available in subsequent years, subject to appropriations by Congress.

Commercial operation of the DOE-funded CCS projects is expected by the end of 2015.

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