Illinois' Industrial Project Spending Remains Bright Despite FutureGen Setback

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Researched by Industrial Info Resources (Sugar Land, Texas)--For the time being, economics and politics have combined to put the kibosh on the FutureGen project in Mattoon, Illinois. After five years of development, the U.S. Department of Energy is stating that the project is too costly. This decision will, in all likelihood, postpone the construction of a clean coal zero-emissions plant in the U.S. by at least three years. Developed by a consortium of leading international coal and energy companies known as the FutureGen Alliance, the cost to build the 275-megawatt clean coal project escalated from $1 billion to $1.8 billion. The cost escalation is common throughout the Power Industry as raw materials and services have skyrocketed in recent years. The cancellation brings back memory of the cancellation of the Super Conducting Super Collider project in 1993. The Texas-sited project's price tag increased from $4.4 billion to $12 billion. The project was canceled shortly after construction began. The Energy Department's restructuring of the FutureGen project comes after five years of research and a lengthy site-selection process. Only last month, the department selected Mattoon as the preferred site.

In spite of the FutureGen cancellation, Illinois remains one of the busiest states in the nation for industrial project development. In fact, Illinois is the third-largest state for future industrial project spending after California and Texas. Illinois has more than 340 projects totaling about $37 billion planned to begin construction in 2008 or beyond.

Click on the image to view a chart showing the breakdown of project spending in Illinois by industry.

The Power Industry accounts for 64% of the planned project spending in the state. Access to coal is one of Illinois' strong points and has resulted in numerous clean coal and coal-gasification projects. In addition to coal-fired power projects, there are also several wind and nuclear projects, including plans for a $3 billion nuclear unit addition by Exelon Nuclear (Clinton, Illinois) at the company's Clinton Nuclear Power Station.

After the Power Industry, the Alternative Fuels Industry accounts for the most project spending activity. Access to corn-farming land has resulted in more than $4 billion in planned ethanol and biodiesel projects in the state.

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