Released November 09, 2009 | SUGAR LAND
en
Written by John Egan for Industrial Info Resources (Sugar Land, Texas)--Dallas Mayor Laura Miller got national media attention a few years ago when she led a successful effort to block TXU Corporation (Dallas, Texas) from building 11 new coal-fired power plants in Texas. But Miller doesn't hate coal. In fact, after leaving office she joined Summit Power (Bainbridge Island, Washington), a power plant developer that plans to build a 400-megawatt (MW) integrated gasification combined cycle (IGCC) power plant in West Texas. The plant will capture and sequester up to 3 million tons of carbon dioxide annually in enhanced oil recovery (EOR) projects in the Permian Basin. About 90% of the generator's carbon dioxide emissions will be captured.
Later this month, Summit Power is scheduled to learn whether the U.S. Department of Energy (DoE) will provide funding for its project in "round 3" of the DoE's Clean Coal Power Initiative. Summit Power sought $350 million from the DoE; the project will cost an estimated $1.7 billion. DoE officials declined to provide Industrial Info with any details about funding, timelines, or applicants for round 3 clean coal funding.
Miller insisted that the project, named the Texas Clean Energy Project, will move forward, with or without DoE funding. "If we receive DoE funding, it will take about 12 months to do the front-end engineering and design (FEED) work, which means we could break ground during the fourth quarter of 2010," she said in an interview. Under that timeline, the 400-MW generator could be operational by the fourth quarter of 2014. If Summit Power's project is not selected for clean-coal funding, the developer plans to apply for investment tax credits and production tax credits, which would likely delay its in-service date. "If we don't receive DoE funding, we're still going to build this plant," said Miller, who is Summit Power's Director of Projects for Texas.
Earlier this year, Texas lawmakers passed a bill extending up to $100 million in franchise fee credits to the first three in-state IGCC projects that capture and permanently store at least 70% of their carbon dioxide emissions. EOR projects also will receive tax incentives for using power plant carbon dioxide emissions in their projects. "Texas has the opportunity to be ground zero in the country for carbon capture and sequestration," Miller told The Dallas Morning News earlier this year.
Siemens AG (NYSE:SI) (Munich, Germany) is the primary provider for the project's gasifiers, power island, and controls. Siemens has a longstanding relationship with Summit Power, having supplied much of the equipment for the developer's other power generation projects, which total 5,000 MW. Fluor Corporation (NYSE:FLR) (Irving, Texas) will provide design engineering for the project. The University of Texas' Bureau of Economic Geology will monitor the sites where the carbon dioxide is stored to ensure that the greenhouse gas remains underground. Next month, Summit Power plans to file the project's air quality permit application with Texas regulators.
The IGCC project has been supported by several environmental organizations, including the Natural Resource Defense Council (NRDC), Environmental Defense, Public Citizen, and the Clean Air Task Force, Miller said. She's hoping that this level of support for a coal power plant from environmental organizations, as well as broad support from business leaders, will differentiate its project from others seeking DoE funding. "Environmental organizations have supported very few applications for Clean Coal funding, and we're very grateful that they supported the Texas Clean Energy Project," Miller said.
In an interview, Miller told Industrial Info that the project, when operational, will have three equally sized revenue streams: electricity sales, CO2 sales, and urea sales. Summit Power is negotiating with a potential power buyer now, she said. It plans to transport the urea by-product by train and sell it into the open market. The urea is a by-product of the gasification process.
Last month, the developer took care of the carbon dioxide emissions, inking a deal with Blue Source to sell them the plant's CO2 emissions. Blue Source will market those emissions to EOR projects in the Permian Basin. "Ultimately, the project may generate more revenue from CO2 sales than power sales," she said.
"There is a huge demand for CO2 in EOR projects in the Permian Basin," Miller continued. "Our project is located in Penwell, about 15 miles west of Odessa, right in the heart of the Permian Basin. We don't have to worry about transporting the CO2 great distances." She estimated that the nearest EOR project is about a mile from the proposed power plant.
"Being part of an advanced, clean-coal power project is a lot different from life as a big city mayor, where you are asked to do 50 ribbon-cuttings a day," Miller said with a chuckle. "People who knew me when I was fighting TXU are a little surprised when I tell them I am trying to get an advanced, clean coal power plant built in Texas. I'm working to find a solution to something that's bothered me for a long time."
Summit Power is a privately held power-plant developer founded by former high-ranking Energy and Interior Department officials from the Reagan administration. Its forte to date has been gas-fired generation, of which it has developed more than 4,000 MW. Summit Power also has developed about 800 MW of wind projects. The Texas Clean Energy Project will be its first coal-fired power project. Once the plant is built, Summit Power will try to sell it to a power plant operator.
View Plant Profile - 1079967
View Project Report - 1012503
Industrial Info Resources (IIR) is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy related markets. For more than 26 years, Industrial Info has provided plant and project opportunity databases, market forecasts, high resolution maps, and daily industry news.
Later this month, Summit Power is scheduled to learn whether the U.S. Department of Energy (DoE) will provide funding for its project in "round 3" of the DoE's Clean Coal Power Initiative. Summit Power sought $350 million from the DoE; the project will cost an estimated $1.7 billion. DoE officials declined to provide Industrial Info with any details about funding, timelines, or applicants for round 3 clean coal funding.Miller insisted that the project, named the Texas Clean Energy Project, will move forward, with or without DoE funding. "If we receive DoE funding, it will take about 12 months to do the front-end engineering and design (FEED) work, which means we could break ground during the fourth quarter of 2010," she said in an interview. Under that timeline, the 400-MW generator could be operational by the fourth quarter of 2014. If Summit Power's project is not selected for clean-coal funding, the developer plans to apply for investment tax credits and production tax credits, which would likely delay its in-service date. "If we don't receive DoE funding, we're still going to build this plant," said Miller, who is Summit Power's Director of Projects for Texas.
Earlier this year, Texas lawmakers passed a bill extending up to $100 million in franchise fee credits to the first three in-state IGCC projects that capture and permanently store at least 70% of their carbon dioxide emissions. EOR projects also will receive tax incentives for using power plant carbon dioxide emissions in their projects. "Texas has the opportunity to be ground zero in the country for carbon capture and sequestration," Miller told The Dallas Morning News earlier this year.
Siemens AG (NYSE:SI) (Munich, Germany) is the primary provider for the project's gasifiers, power island, and controls. Siemens has a longstanding relationship with Summit Power, having supplied much of the equipment for the developer's other power generation projects, which total 5,000 MW. Fluor Corporation (NYSE:FLR) (Irving, Texas) will provide design engineering for the project. The University of Texas' Bureau of Economic Geology will monitor the sites where the carbon dioxide is stored to ensure that the greenhouse gas remains underground. Next month, Summit Power plans to file the project's air quality permit application with Texas regulators.
The IGCC project has been supported by several environmental organizations, including the Natural Resource Defense Council (NRDC), Environmental Defense, Public Citizen, and the Clean Air Task Force, Miller said. She's hoping that this level of support for a coal power plant from environmental organizations, as well as broad support from business leaders, will differentiate its project from others seeking DoE funding. "Environmental organizations have supported very few applications for Clean Coal funding, and we're very grateful that they supported the Texas Clean Energy Project," Miller said.
In an interview, Miller told Industrial Info that the project, when operational, will have three equally sized revenue streams: electricity sales, CO2 sales, and urea sales. Summit Power is negotiating with a potential power buyer now, she said. It plans to transport the urea by-product by train and sell it into the open market. The urea is a by-product of the gasification process.
Last month, the developer took care of the carbon dioxide emissions, inking a deal with Blue Source to sell them the plant's CO2 emissions. Blue Source will market those emissions to EOR projects in the Permian Basin. "Ultimately, the project may generate more revenue from CO2 sales than power sales," she said.
"There is a huge demand for CO2 in EOR projects in the Permian Basin," Miller continued. "Our project is located in Penwell, about 15 miles west of Odessa, right in the heart of the Permian Basin. We don't have to worry about transporting the CO2 great distances." She estimated that the nearest EOR project is about a mile from the proposed power plant.
"Being part of an advanced, clean-coal power project is a lot different from life as a big city mayor, where you are asked to do 50 ribbon-cuttings a day," Miller said with a chuckle. "People who knew me when I was fighting TXU are a little surprised when I tell them I am trying to get an advanced, clean coal power plant built in Texas. I'm working to find a solution to something that's bothered me for a long time."
Summit Power is a privately held power-plant developer founded by former high-ranking Energy and Interior Department officials from the Reagan administration. Its forte to date has been gas-fired generation, of which it has developed more than 4,000 MW. Summit Power also has developed about 800 MW of wind projects. The Texas Clean Energy Project will be its first coal-fired power project. Once the plant is built, Summit Power will try to sell it to a power plant operator.
View Plant Profile - 1079967
View Project Report - 1012503
Industrial Info Resources (IIR) is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy related markets. For more than 26 years, Industrial Info has provided plant and project opportunity databases, market forecasts, high resolution maps, and daily industry news.
