Clean Coal - It is Possible

AEP to receive federal stimulus funding for CCS project

AEP selected to receive DOE funds to advance carbon dioxide capture and storage to commercial scale

American Electric Power was notified by the U.S. Department of Energy (DOE) that it was selected to receive funding through the Clean Coal Power Initiative Round 3 to pay part of the costs of installing the nation’s first commercial-scale carbon dioxide capture and storage system on its Mountaineer coal-fired power plant in New Haven, W.Va. The DOE announced the funding today.

AEP will immediately begin negotiating terms with the DOE to receive $334 million to assist with the installation of the system that will use a chilled ammonia process to capture at least 90 percent of the carbon dioxide from 235 megawatts of the plant’s 1,300 megawatts of capacity. The captured carbon dioxide, approximately 1.5 million metric tons per year, will be treated and compressed, then injected into suitable geologic formations for permanent storage approximately 1.5 miles below the surface. The system will begin commercial operation in 2015, according to the company’s application for funding.

The $334 million requested by AEP is about half of the estimated cost of the system.

“We’re pleased that the DOE selected our project for funding,” said Mike Morris, AEP chairman, president and chief executive officer. “It demonstrates the agency’s recognition that commercialization of carbon capture and storage technology is an essential component in a successful climate strategy for this nation, which relies on coal-fired generation for about half of its electricity supply.

“Customers of utilities in the U.S. and abroad will benefit from the work we are doing at our Mountaineer Plant,” Morris said. “The first use of any technology comes at a higher cost than subsequent uses. The DOE funding will reduce the costs our customers face for the first commercial deployment of this technology, which will lead to lower future costs for customers of AEP and other utilities as companies retrofit existing coal-fired plants to address carbon dioxide emissions.

“We greatly appreciate the support we’ve received from West Virginia’s Washington delegation and state officials as we pursued funding to push this important technology to commercial scale,” Morris said.

For this commercial-scale project, AEP has formed a diverse technical advisory committee that includes recognized experts in the field of geologic carbon dioxide storage. This group will include participants from Schlumberger Limited, Battelle Memorial Institute, Lawrence Livermore National Laboratory, Massachusetts Institute of Technology, The Ohio State University, West Virginia University, The University of Texas, West Virginia Geological Survey, Ohio Geological Survey, CONSOL Energy, and the West Virginia Department of Commerce Division of Energy. Additionally, Battelle and Schlumberger will work directly with AEP to design and deploy the carbon dioxide storage system at Mountaineer. AEP is also in discussions with other potential international partners for the project.

AEP and Alstom began operating a smaller-scale validation of the technology in September at the Mountaineer Plant. That system captures up to 90 percent of the carbon dioxide from a slipstream of flue gas equivalent to 20 megawatts of generating capacity. The captured carbon dioxide, more than 100,000 tons a year, is being compressed and injected into suitable geologic formations for permanent storage approximately 1.5 miles below the surface. No federal funds are being used for the validation project.

Science Scene - Carbon Capture, is there a future?

As you read and hear about the potential for use of the stimulus funds, please recognize that some of the stimulus will be going toward things that will really help our environment, and based on the jobs and technology, will also help stimulate our economy. Some of these initiative are shorter term (i.e., cash for clunkers), and some are longer term. An example of the longer term can be found from the following press release from my company.

COLUMBUS, Ohio, Aug. 20, 2009 – American Electric Power (NYSE: AEP) will apply for funding from the U.S. Department of Energy Clean Coal Power Initiative Round 3 to pay part of the costs of installing the nation’s first commercial-scale carbon dioxide capture and storage system on its Mountaineer coal-fired power plant in New Haven, W.Va.

The application deadline is Monday (8/24/09). AEP’s application will seek $334 million, about half the estimated cost of installing the system that will use a chilled ammonia process to capture at least 90 percent of the carbon dioxide from 235 megawatts of the plant’s 1,300 megawatts of capacity. The captured carbon dioxide, approximately 1.5 million metric tons per year, will be treated and compressed, then injected into suitable geologic formations for permanent storage approximately 1.5 miles below the surface.

The system will begin commercial operation in 2015, according to the company’s application for funding.“Commercialization of carbon capture and storage technology is an essential component in a successful climate strategy for this nation, which relies on coal-fired generation for about half of its electricity supply,” said Michael G. Morris, AEP’s chairman, president and chief executive officer. “Coal is a low-cost, abundant domestic fuel source, but its use is a significant source of carbon dioxide emissions.

“First-movers like AEP who push the commercialization of technology will face higher costs than those who wait for others to act, costs that would be borne by our customers,” Morris said. “But without efforts like ours, the availability of solutions for reducing carbon dioxide emissions from coal-fired power plants will be needlessly delayed. It’s an appropriate use of federal stimulus funds to spur the advancement of this technology and to offset the financial penalty facing our customers and our company for taking the initiative.”

For this commercial-scale project, AEP is forming a diverse technical advisory committee that includes recognized experts in the field of geologic carbon dioxide storage. This group will include participants from Schlumberger Limited, Battelle Memorial Institute, Lawrence Livermore National Laboratory, Massachusetts Institute of Technology, The Ohio State University, West Virginia University, The University of Texas, Ohio Geological Survey, CONSOL Energy, and the West Virginia Department of Commerce Division of Energy. Additionally, Schlumberger will work directly with AEP to design and deploy the carbon dioxide storage system at Mountaineer.

AEP and Alstom will begin operating a smaller-scale validation of the technology in September at the Mountaineer plant. That system will capture up to 90 percent of the carbon dioxide from a slipstream of flue gas equivalent to 20 megawatts of generating capacity. The captured carbon dioxide, more than 100,000 tons a year, will be compressed and injected into suitable geologic formations for permanent storage approximately 1.5 miles below the surface.

No federal funds are being used for the validation project.

What the Stimulus Means for You :o)

So, what are we going to get for $800 Billion, and is there a chance that us average citizens will see anything? Below are the details that we can expect:

A bigger paycheck: Starting in April, you can expect to see a little bit more in your paycheck, and income tax reduction of $400 for individuals and $800 for couples. Assuming this is for the whole year, it should be $50 to $60 per month.

A bonus for retirees: If you collect social security, look for a $250 check this summer.

Relief from the AMT: A $500 increase in the alternative minimum tax (AMT) exemption for individuals, to $46,700, and a $1000 increase for couples, up to $70,950.

A tax break on new wheels: If you buy a new car, light truck, motorcycle or motor home this year and spend up to $49,500, you can deduct state and local sales taxes (average is 6%). Individuals who make less than $125,000 and families making less than $250,000 qualify.

An incentive for home buyers: A tax credit of up to $8,000 for first-time buyers has been extended through November. If you buy in 2009, you will not have to pay the credit back. For all homeowners, the cap on credits for energy-efficiency improvements, such as new windows or insulation, has been raised from $500 to $1,500.

A break on college tuition: A beefed-up Hope (now American Opportunity) credit will max out at $2,500, up from $1,800. Qualifying income limits rise to $80,000 for singles and $160,000 for couples. Does your college student need a PC? You can use money in your 529 account to buy one - or Internet access - this year or next.

Lifeboats for the laid-off: Those who remain on their former employer's health-insurance plan will get a 65% subsidy for up to nine months. The first $2,400 in unemployment -insurance benefits this year will be tax-exempt.

Stimulus Package - Will Nuclear Get a Fair Shake?

US NEWS: --SENATE APPROPRIATORS APPROVED $50 BILLION IN LOAN GUARANTEE authority in fiscal 2009 for new nuclear power plants and other clean energy technology projects. The appropriators approved the provision January 27 as part of a stimulus package intended to create more jobs and reinvigorate the economy. A report accompanying the legislation, S. 336, said the loan guarantee authorization would supplement the levels previously approved for the loan guarantee program. It said the committee was providing additional authorization because of the "strong interest in the program and the large number of pending applications."

Under the program, there is currently $18.5 billion available for power reactor projects, which the industry says would cover construction of no more than three new nuclear units, and $2 billion available for nuclear fuel cycle facilities. DOE said it initially received 19 applications to build 21 new reactors, but the department hasn't disclosed how many of those applicants completed the second part of the filing process by last month's deadline. House appropriators did not include a similar provision to expand loan guarantees for nuclear projects in their version of the stimulus legislation.

Differences between the House and Senate versions would have to be ironed out by members of a congressional conference committee.