IGCC is finally getting underway as indicated by the following announcement. It isn't surprising that the first commercial plant will use gasifier technology developed by the government. The government is putting up nearly half of the money for the project, which seems too much, but the price for progress comes high. I assume they are justifying that because the gasifier technology has not been proven on such a large scale. Subtracting 10% for engineering from the total results in a cost of $1,759/kw. Scaling that up the 285 MW plant by the 0.7 power to 500 MW results in $1,484/kW which is close to the $1,500/W cost they are forecasting for that size IGCC plants. IGCC plants reduce emissions of SO2, NOx and mercury to much lower levels than required by EPA. Although the plant does not use sequestration of the CO2, it will reduce the CO2 emissions by 20-25% compared to more conventional plants. The reduction comes primarily from the increased efficiency of the plant. The plant was first announced in October of 2004, but the formal agreement was not signed until today.
ATLANTA, Feb. 22 /PRNewswire-FirstCall/ -- Southern Company and the U.S. Department of Energy have signed a cooperative agreement to formally launch the design and construction of an advanced 285-megawatt integrated gasification combined cycle facility in central Florida, which will be the cleanest, most efficient generating technology in the world today using coal as its fuel source.
Southern Company, in partnership with Orlando Utilities Commission (OUC) and Kellogg Brown and Root (KBR), will develop the facility through its Southern Power subsidiary, which builds, owns, and manages the company's competitive generation assets. It will be located at OUC's Stanton Energy Center in Orange County, Fla., near Orlando. ....
The plant, which is part of the energy department's Clean Coal Power Initiative, will turn coal into gas for generating electricity, while significantly reducing emissions of sulfur dioxide, nitrogen oxides and mercury. The plant will use state-of-the-art emission controls, showcasing the cleanest, most efficient coal-fired power technology in the world, including the transport gasifier technology that Southern Company, KBR, DOE and others have been developing at the Power Systems Development Facility near Wilsonville, Ala.
"OUC is enthusiastic about the potential of this new form of coal gasification," said Ken Ksionek, OUC General Manager and CEO. "We feel that this technology has the potential to be the cleanest, most efficient, least cost coal-based generation option available for the foreseeable future."
The transport gasifier offers a simpler, more robust method for generating energy from coal than other available alternatives. It is unique among coal gasification technologies in that it is cost-effective when handling low rank coal, as well as coals with high moisture or high ash content. These coals make up half the proven U.S. and worldwide reserves. In addition, the technology produces 20 percent to 25 percent less carbon dioxide, on average, than coal-based generation in place today. ....
The National Energy Technology Laboratory will manage the project for the DOE. Initial funding of $13.8 million will support project activities through March 2007. The total cost of the 10-year project is an estimated $557 million, of which the Energy Department will contribute $235 million and the remaining costs will be shared by Southern Company and the other partners. The expected date for commercial operation is 2010.
Resource: New clean coal technology plant reaches milestone with formal signing of agreement, Press release, Feb. 22, 2006