FutureGen — the carbon-neutral coal power project initiated and then killed under the Bush Administration — looks increasingly likely to be resuscitated under President Obama after proponents met with Energy Secretary Steven Chu this week. There is now good reason to take a fresh look at this proposed coal gasification power plant which integrates carbon capture and storage (CCS) from the ground up.
Those words don’t come easy for this longtime FutureGen critic. But the context has changed since FutureGen was conceived in 2003, and even since Bush Energy Secretary Samuel Bodman killed it in January of 2008. While Energywise recently noted ongoing concern over FutureGen’s cost, here are five arguments that could justify heavy federal financing:
- Project scope: In its early years FutureGen was viewed as a PR exercise because it framed carbon-neutral coal as a research project, positioning the use of commercially-ready Integrated Gasification Combined Cycle power plants as a moon-shot. Chu has indicated that the project would be streamlined. My sources say one element likely to go will be plans to generate fuel-cell grade hydrogen.
- Financing: The most fundamental block to commercialization of IGCC technology was Bush’s refusal to put a price on carbon emissions, which thwarted even utilities such as AEP that wanted to build cleaner coal plants. Carbon pricing may arrive under Obama–if he can push it through Congress–but the financial collapse has now slashed utilities’ appetite to pore capital into big projects.