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St. Louis Post-Dispatch

Lee Enterprises

Sunday, June 14, 2009 8:37 PM CDT
Project back on track, but alliance must put up millions

By HERB MEEKER, Staff Writer
hmeeker@jg-tc.com

FutureGen Alliance must produce hundreds of millions of dollars more for building its power plant that burns coal more cleanly.

The federal government has committed $1.073 billion, mostly from the American Recovery and Reinvestment Act, to restart the FutureGen project at Mattoon. In turn, FutureGen Alliance must raise up to $800 million as its share of the renewed private-public partnership agreement announced by Secretary of Energy Steven Chu on Friday.

The agreement comes after several months of discussions between the alliance, a group of energy-related companies and governments, and the Department of Energy.

FutureGen Alliance Chief Executive Officer Michael J. Mudd said the alliance and DOE will work together through the rest of the year to refine the facility’s design to reduce cost and technical risk. He explained several technology configurations will be considered and upcoming discussions with equipment vendors, the engineering team and economics will shape the final design of the facility.

The alliance’s total anticipated financial contribution is $400 million to $600 million, based on a goal of 20 member companies each contributing $20 million to $30 million over a four- to six-year period. Adding new members to the Alliance, which now numbers 13 companies is part of the goal for raising the private share under the new financing plan.

Chu said that FutureGen project could become “a flagship facility” to demonstrate carbon or greenhouse gas capture and storage at a commercial scale. He added developing this technology is critically important for reducing greenhouse gas emissions in the United States, and around the world.

Yet a final decision rests with the DOE on whether FutureGen moves forward. That decision is expected sometime in January 2010. That would be two years after DOE under the Bush Administration canceled support for the energy project.

But Mudd and other FutureGen supporters believe the decision will be different this time around.

“The Alliance is extremely grateful to Secretary Chu and DOE, for the tremendous support and tenacity of Sen. (Richard) Durbin and project champions on Capitol Hill. Further, the hard work and resources that Coles Together, the State of Illinois and the people of Illinois have contributed to make Mattoon an attractive site is commendable,” said Mudd.

“The jobs created at FutureGen will result in important technology to reduce emissions from coal-fueled power plants at home and around the world. The Alliance is honored to work in partnership with such unwavering supporters, and remains committed to testing and proving CCS technology so future generations can have cleaner energy for a secure future.”

Even with the final hurdle for approval next year Durbin said the announcement of the agreement between DOE and FutureGen Alliance is great news for Illinois, the country and the world.

The federal government withdrew support for FutureGen in January 2008, citing rising costs of almost $2 billion at the time. However, the estimated cost now is $2.4 billion, including $1.9 billion for the construction phase, Durbin said. It will take three to four years to get the plant online for generating up to 275 megawatts of electricity.

“The important news here is we’re back in business,” Durbin said during a Friday press conference in Washington. “A lot of people walked away from this. But the important thing is we’ve reached this point. I feel positive on the outcome.“

U.S. Rep. Tim Johnson agreed the news is welcomed.

“Today’s news represents a very positive and long overdue development for the FutureGen project. I applaud the FutureGen Alliance and the Department of Energy for coming to an agreement that brings us closer to construction of this much-anticipated project in Mattoon,” said Johnson. “The people of Coles County and Illinois have invested their time and energy into this project over many years. It’s been a heartbreaking process at times but they have kept the faith and their leaders have maintained the momentum even when the process seemed to be moving backward.”

A Record of Decision from DOE on approving the FutureGen site is expected by the end of June as part of the renewed public-private partnership on FutureGen at Mattoon on a site west of the city. That approval has been withheld for more than 18 months.

Contact Herb Meeker at hmeeker@jg-tc.com or 238-6869.

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Harry Potter wrote on Jun 13, 2009 7:13 AM:

" FutureGen Alliance Chief Executive Officer Michael J. Mudd said the alliance and DOE will work together through the rest of the year to refine the facilitys design to reduce cost and technical risk.

Technical risk?

I thought we were told that all the risks had been eliminated.

This whole deal is nothing more than another inflated popcorn factory. Remember that scam?

Where are all the disgruntled Jack Pierce's and the Tom Andre's over this bloated pork project? "

kamfong wrote on Jun 13, 2009 7:45 AM:

" The carrot on the stick,out in front of the donkey trick. "

soybeanpod wrote on Jun 13, 2009 1:26 PM:

" Ditto the technical risk and why it was considered safe before???? We need to be told honestly, the truth.

Also, just hope the coalition does not go crying to the federal government needing more money that they can't come up with on their own. The Federal government is having trouble already trying to sell their new bonds on the auction market. No buyers, and possibly a lower credit rating down the road for us to pay with more inflation and higher taxes. "

HerChild wrote on Jun 13, 2009 2:18 PM:

" OMG- This is the biggest farce ever!
Let's pay millions for...an experiment that will kill us all...so that others may learn from our mistakes? OMG! "

Mike P wrote on Jun 13, 2009 7:31 PM:

" The state absolved potential liability, but this is considered to be a chemical plant. There is no way to eliminate risks, if any arise or something happens, they can't be held responsible.

Hope all the supporters look past the lottery type windfall, and understand exactly what is proposed to be on this poorly selected sight. I hope the new administration, gives it a good look, well beyond the previous administrations. This isn't a supersized pellet stove, it is explained pretty well in several places by simply googling futuregen.

We still have no idea how waste, slag, and pollutants generated by this kind of thing will be handled, stored, or removed. Carbon gas is the least of this projects potential issues. "

Laramie wrote on Jun 14, 2009 4:45 AM:

" This whole deal is nothing more than another inflated popcorn factory. Remember that scam?

Last I heard they were raising Orgasmic Soy Beans, or some such thing. ;););););) "

Jim1969 wrote on Jun 14, 2009 6:16 AM:

" Too bad someone can't figure out a way to harness all the hot air and BS coming out of the various state capitols as well as DC. If they did we would have enough energy to last for the next 20,000 years. "

The Question wrote on Jun 14, 2009 7:47 AM:

" A strictly accurate headline would read, "FutureGen gets nothing" "

Rohn Gordon wrote on Jun 14, 2009 1:05 PM:

" I still question "if this is so great why isn't investors falling head over heels to invest in it?" "

Old Grumpy wrote on Jun 14, 2009 4:14 PM:

" FutureGen is very much like the convention center proposed for the I-57 TIF District. People who have all the money want someone else to foot the bill so they can make more money.

Now that they have demanded and received absolution for any liability they still want our tax money to build it! What a racket. "

Harry Potter wrote on Jun 15, 2009 6:56 AM:

" People who have all the money want someone else to foot the bill so they can make more money.

Yeah Grumpy, remember who it was that was pushing for this deal? And of course us little people were expected to pick up the tab. I suppose a convention center would require a lot of phones. "

Locke wrote on Jun 15, 2009 9:05 AM:

" I wonder if FutureGen would have the same level of support, say, if it was over on the southeast side of Mattoon?

Probably not. "

Bernie wrote on Jun 15, 2009 10:58 AM:

" How many other businesses require an agreement that they will not be sued for damages before they open?

Take one carbon sequestration plant, add one small seismic event (like the one we just had), and we have created a recipe for disaster. "

Bernie wrote on Jun 15, 2009 11:02 AM:

" A carbon dioxide bubble erupted out of a lake in Africa a few years ago, killing over 3000 people. "

medic57 wrote on Jun 15, 2009 11:07 AM:

" Locke

There's some good groung they were going to use for a school, I'm sure the people who live in that general area wouldn't mind FutureGen.

As far as a new Convention Center goes, maybe Paris Hilton will come to visit. Nothing like having a few thousand Paparazzi hanging around for a couple of days. "

The Question wrote on Jun 15, 2009 11:53 AM:

" I wonder if FutureGen would have the same level of support, say, if it was over on the southeast side of Mattoon?
Probably not.
---
If the "experiment" goes up the spout, they won't be able to hide, either, Locke. They will swirl down the drain with the rest of the residents. "

Harry Potter wrote on Jun 15, 2009 5:59 PM:

" Paris Hilton?

Sarah Palin is to politics what Paris Hilton is to show business. They're both a couple of walking punch lines. "

medic57 wrote on Jun 16, 2009 7:29 PM:

" Maybe we could get Perez Hilton and Carrie Prejean to show up for the grand opening of FutureGen. I am pretty sure her values are much closer to midwest values than California. She did NOTHING wrong, she was ask her opinion, which she gave honestly, and lost because of it. It was a loaded question just to make her lose. I would imagine that even though she has been dethrowned as Miss Claifornia, more people know her than the new Miss California. "

medic57 wrote on Jun 16, 2009 7:37 PM:

" FutureGen will make hundreds of millions of profits, let them build it themselves. "

unknownjoe wrote on Jun 16, 2009 11:50 PM:

" I saw a white elephant once. Very similar me thinks. "

CLICK TO ENLARGE

This is an artist's rendition, released by the FutureGen Alliance, of the FutureGen power plant. Energy Secretary Steven Chu said Friday that DOE is moving forward on the futuristic coal-burning power plant that the Bush administration had declared dead. The plant will be built in Mattoon. Associated Press