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Released April 29, 2014 | SUGAR LAND
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Written by John Egan for Industrial Info Resources (Sugar Land, Texas)--The long-delayed, much-anticipated, $1.65 billion FutureGen 2.0 Power Project has taken several steps forward in recent weeks. Perhaps most importantly, the advanced coal combustion technology project received proposed Class VI underground injection permits for carbon sequestration from the U.S. Environmental Protection Agency (EPA) (Washington, D.C.) at the end of March.

The EPA will take public comments on the draft injection permits until May 15. These are the first Class VI underground injection permits for carbon sequestration issued by the EPA. As part of its public comment process, the EPA will hold a public hearing May 7 on the project and the draft permits. The hearing will be held at MacMurray College in Jacksonville, Illinois. On the day of the hearing, the EPA will hold two question-and-answer sessions about the project and the draft permits at MacMurray College.

On receiving the draft EPA permits March 31, Ken Humphreys, chief executive at the FutureGen Alliance (Jacksonville, Illinois), made this statement: "The FutureGen Alliance is pleased that the U.S. Environmental Protection Agency [EPA] has issued draft underground injection control (UIC) permits to construct and operate Class VI injection wells for the FutureGen 2.0 project. When finalized, the Class VI permits will allow for the permanent geologic sequestration [capture and storage] of carbon dioxide in a saline aquifer within the Mt. Simon sandstone formation. The Alliance appreciates the hard work the agency has done to complete the draft permits, and we look forward to the issuance of final permits, which will allow us to keep this near-zero emissions project on track."

In the four weeks since the EPA issued its draft injection permits for FutureGen 2.0, the agency has received only five public comments, though more are expected, an EPA source told Industrial Info. Until the EPA considers all the public comments, it will be unable to provide a timeline when the final permits will be issued, the source said, adding: "It all depends on the number of comments we receive and whether we have to go back to the FutureGen Alliance for additional information."

FutureGen may hold a key to the future of U.S. coal-fired generation. Launched in 2008, the project since has gone through several iterations. The current project envisions installing pre-combustion oxy-combustion technology on a shuttered power plant in Meredosia, Illinois. That technology will eliminate most of the carbon dioxide (CO2) emissions before the generator burns coal, but the project also will install technology to capture and sequester an estimated 97% of the CO2 emissions that are produced in the combustion process. The captured carbon dioxide would then be transported and injected deep underground via the proposed wells, which would be constructed in Morgan County, Illinois. FutureGen's goal is to capture and inject 1.1 million metric tons of carbon dioxide each year for 20 years.

The FutureGen 2.0 power station will be capable of generating up to 166 megawatts (MW) of electricity. For more on the FutureGen 2.0 project, see July 19, 2012, article - FutureGen Zero-Emissions Project Now Has Site Set for CO2 Storage; December 8, 2011, article - FutureGen to Move Forward Without Ameren's Participation; and August 10, 2010, article - FutureGen Version 2.0 Receives $1 Billion in DoE Funding.

A source close to the project said it is now in its final design stage. Pre-construction activities like site preparation and power line relocation are under way in anticipation of the start of construction. FutureGen Alliance's Humphreys reportedly predicted construction of all the project's components--including the power plant, CO2 pipeline, storage site and training facility--will begin before the end of 2014. He predicted the final EPA permits would be received by this fall. The project is scheduled to take about three years to construct, so electricity could be generated at Meredosia by year-end 2017.

"FutureGen is critical to the future of coal-fired generation in the U.S.," said Brock Ramey, manager of Industrial Info's North American Power research. "Despite its denials, the Obama administration has been waging a war on coal. EPA regulations on CO2 emissions from new and existing coal-fired generation are being developed by the EPA. It will be interesting to see if the Obama administration makes good on its $1 billion commitment to FutureGen."

In September 2010, the U.S. Department of Energy (DoE) (Washington, D.C.) committed to a $1 billion federal grant to the FutureGen Alliance under the American Recovery and Reinvestment Act (ARRA). On announcing the federal funding commitment, then-Energy Secretary Steven Chu said: "Today's milestone will help ensure the U.S. remains competitive in a carbon constrained economy, creating jobs while reducing greenhouse gas pollution. Developing innovative, cost-effective carbon capture and storage technologies is critical to the country's transition to a clean energy future." In a 2010 statement accompanying the DoE announcement, Illinois Governor Pat Quinn added: "This $1 billion federal commitment is a critical step to bringing FutureGen to Illinois. We look forward to demonstrating to the world that we can use one of our greatest natural assets in a way that protects our environment and puts more people to work."

Earlier this month, U.S. Senator Dick Durbin (D-Illinois) joined representatives of the FutureGen Alliance and 17 labor organizations to sign an agreement that the project will be built using skilled craft workers who are union members.

"The signed agreement further guarantees a reliable, highly skilled workforce of women and men for the FutureGen 2.0 project," FutureGen Alliance's Humphreys said at the April 14 event. "It also assures local unions that FutureGen 2.0 jobs will be governed by accepted union labor work rules, and that wages and benefits will be determined by a standardized project labor agreement. The agreement also helps ensure that employment opportunities and the associated economic benefits are realized right here in Morgan County, Illinois, and surrounding counties."

Humphreys continued: "There has been a tremendous amount of progress in engineering/design and a portfolio of permits--air, water, pipeline. But ultimately, that's just a stack of paper until you have a highly skilled workforce that can turn the design into reality. The project labor agreement is the mechanism that mobilizes that workforce. The agreement provides access to a highly skilled workforce that knows how to work safely, productively and cost-effectively. It also ensures that the labor workforce is sourced locally."

At the April 14 signing ceremony, Paul Moore, president of the Central Illinois Building and Construction Trades, had this comment on the labor agreement: "The budget is safe with a project labor agreement. There are no hidden costs and no cost overruns. You won't be confronted with unexpected wage demands or disputes halfway through the project. Finally, and here's the big thing, many of our brothers and sisters who have been on the out-of-work books for months or have been traveling across the country trying to find employment now have hope through this project of getting a chance to ply their craft close to home."

The labor agreement was signed by the following local unions: Asbestos Workers Local 1; Boilermakers Local 363; Bricklayers Local 8; Carpenters Local 270; Cement Masons Local 18; Electricians Local 193; Glaziers Local 1168; Ironworkers Local 46; Laborers Local 477; Millwright Local 1051; Operating Engineers Local 965; Painters Local 90; Plasterers Local 18; Plumbers and Pipefitters Local 137; Roofers Local 112; Sheet Metal Workers Local 218; and Teamsters Local 916.

A recent University of Illinois study found that FutureGen will create an average of 620 well-paying jobs for the next 24 years and bring $12 billion in overall economic benefits to Illinois. On a national basis, the benefits will be much greater. Tens of thousands of megawatts of coal-fired generation are slated for premature closure due to tightening environmental regulations. While the power industry has ample technology options to control emissions of sulfur dioxide (SO2), oxides of nitrogen (NOx), and mercury and other hazardous air pollutants, there is no commercially viable technology to either remove CO2 from coal prior to its combustion or to capture and sequester it after combustion.

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Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, three offices in North America and 10 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle™, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities.
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