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Political BLOG |
 July 2008
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Kentucky state government is partnering with some private companies to try and find a way to sequester the carbon dioxide left over from coal liquification. Coal advocates and environmentalists agree that coal won't flourish as a future "clean energy" source until companies can safely deal with the CO2 emissions. Governor Beshear Announces Public-Private Partnership to Test Geology for Carbon Storage Peabody Energy, ConocoPhillips, E.ON U.S. will work with Kentucky Geological Survey on Carbon Storage Research FRANKFORT, Ky. (June 30, 2008) - Gov. Steve Beshear today announced that the state is partnering with the newly created Western Kentucky Carbon Storage Foundation to advance the science of long-term carbon storage opportunities in the commonwealth. Peabody Energy, ConocoPhillips and E.ON U.S. formed the non-profit Foundation to work with the Kentucky Geological Survey in a project that includes drilling a well to test the Knox and Mount Simon geological formations at a site in Hancock County. "The importance of carbon dioxide sequestration research for our state's and the nation's energy future cannot be overstated," said Gov. Beshear. "Kentucky has been a strong supporter of efforts to develop partnerships and projects such as this one, and the results from this testing are crucial in our quest to develop and implement clean coal technologies and become a world leader in energy production." The Geological Survey, based at the University of Kentucky, will lead project research in conjunction with other state agencies. The Foundation will provide technical assistance along with the majority of project funding. An agreement on a well site is expected to be signed within several weeks. "Proving the feasibility of carbon storage in deep saline reservoirs is important for Kentucky's future," said Jim Cobb, State Geologist and Director of the Geological Survey. "The Kentucky General Assembly made this test possible through passage of the 2007 energy bill. We are happy to be working with the Foundation and our industry partners whose participation is vital to the success of this research." The test is responsive to Kentucky's legislative mandate calling for research on Kentucky's carbon storage potential. It includes drilling a well and injecting a small amount of carbon dioxide into formations as much as 8,300 feet below the surface and will analyze the suitability of long-term geologic storage. Drilling is anticipated to occur this winter, with the carbon dioxide injection test in spring 2009. The project will also include significant monitoring by the Geological Survey. Peabody and ConocoPhillips are progressing with a joint feasibility study for a large, commercial scale coal gasification project that would produce substitute natural gas. The plant would be fueled by a new coal mine to be located in western Kentucky. An analysis of multiple long-term carbon dioxide solutions is part of the feasibility study. Peabody Energy is the world's largest private-sector coal company, with 2007 sales of 238 million tons and $4.6 billion in revenues. Its coal products fuel approximately 10 percent of all U.S. electricity generation and 2 percent of worldwide electricity. ConocoPhillips is an integrated energy company with interests around the world. Headquartered in Houston, Texas, the company has approximately 32,800 employees and $183 billion of assets. E.ON U.S. is a subsidiary of E.ON A.G., the world's largest investor-owned energy services provider. E.ON US owns and operates Louisville Gas and Electric Company, a regulated utility that serves 318,000 natural gas and 390,000 electric customers in Louisville and 16 surrounding counties, and Kentucky Utilities Company, a regulated electric utility in Lexington that serves 518,000 customers in 77 Kentucky counties and five counties in Virginia. 1 CommentsLeave a comment |
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WHAS11.com Political Blog
WHAS11 Reporters blog the latest political news from the campaign trail and beyond. 
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Billions on FutureGen have been invested with
NO RESULTS
by: Jim Anderson Stivers
In a previous post I mentioned the Feds had abandoned the Carbon Capture experiment. Billons were invested . . . but no conclusive results.
Why does Kentucky vision with the few millions allocated, Kentucky can find the discovery that the Federal Government and Private Enterprise have already spent on . . . trying to CAPTURE CARBON EMISSIONS.
READ THIS .. .
CCS also poses a potential threat to health, ecosystems and the climate, the report argues. A big CO2 leak from CCS plants during storage or in transit could result in the asphyxiation of people or animals. Even small but ongoing leaks will negate the CCS process of limiting the amount of CO2 released into the atmosphere. Carbon dioxide also dissolves to form an acid. While it is unclear how severe these risks will be given that there is not yet an operational plant, they are potential hazards.
Rochon logs some now abandoned, but expensive, efforts to set up CCS plants in Norway and the US. FutureGen, the Bush administration’s flagship CCS project in the US, was hailed in 2003 as the first coal plant with near-zero emissions. Yet after delays and budget blow-outs the US government pulled the plug this January. The plant was supposed to be online in 2012, but never left the development phase.
FutureGen was a public-private project that included the US Department of Energy, American Electric and Power Service Corp, Anglo American, BHP Biliton, Rio Tinto and China’s largest coal-fired power company China Huaneng Group. Not only did the state of Illinois, where the plant was being built, chip in with a US$17 million grant, a sales tax exemption on building materials and $50 million for project loans, it passed laws to protect FutureGen from financial and legal liability in the event of an unanticipated release of CO2. The state government even agreed to indemnify FutureGen from lawsuits and to pay for its insurance policies, Rochon noted.
In 2007, the DOE reassessed the project after costs had risen by 85% in three years to $1.8 billion. “FutureGen collapsed despite being promised an unprecedented level of support: a total of $1.3 billion of public funds, and being shielded from any legal responsibility. The debacle should serve as a warning to governments and industry considering investing in CCS”, Rochon stated.