Tax credits for gasification systems. This is the future mate!
Tenaska officials announced July 27 that they just won a US$417 million investment tax credit for the Taylorville Energy Center (TEC) in Illinois, which will gasify coal to produce synthetic natural gas (SNG) as well as integrated gasification combined cycle (IGCC) electric power.
“Cost savings from the tax credit will be passed through to Illinois electric utility customers under the Illinois Clean Coal Portfolio Standard Law (Clean Coal Law),” according to Tenaska.
“To qualify for the credit, the DOE [U.S. Department of Energy] was required to evaluate competing projects and certify that TEC is both technically and economically ‘feasible’ and that it can be operated to capture at least 65% of its carbon dioxide emissions. Following its evaluation, DOE certified the project and ranked TEC first among bituminous coal projects, enabling the plant to receive this significant federal tax credit.”
The TEC project, estimated to cost $3.5 billion, required an “extensive engineering study and ‘facility cost report’ prepared under the Clean Coal Law. This 1,800-page report, the work of more than a dozen nationally renowned engineering and consulting firms, concluded that the plant would result in an average projected rate impact of approximately 1.8% for the utilities’ residential customers, adding about 6 cents a day to a typical customer’s bill. It also found that TEC would reduce the state’s carbon dioxide emissions by nearly 2 million tons per year.”
Under the Clean Coal Law, purchases from TEC are not permitted to cause utility residential rates to increase by more than 2.015%. Electricity customers would see no impact on their bills until mid-2015, when the project is slated for completion.
John Thompson, director of the Coal Transition Project for the Clean Air Task Force, added that “in order to successfully tackle climate change, projects like Taylorville are essential. By committing to capture 65% of their carbon emissions and with an emissions profile comparable to natural gas, this project represents a vital step towards a commercial scale carbon storage industry and cleaner energy production in the United States.” –
Hopefully UGas gasification coal technology will be as cost effective as ADES's Clean Coal technology used to produce Refined Coal (“RC”), which reduces emissions of NOx and mercury, and qualifies for IRS Section 45 tax credits of over $6.33 per ton of coal.
The future of the Coal industry for the next few decades will depend on their ability to find the best technologies to reduce CO2 emissions so they can not only take advantage of tax credits, but avoid hefty fines for polluting the environment. Without gasification technology in place the coal industry will be done. So, pick your poison. SYMX, SYNM, ADES, etc..Any other gasfication companies, please post them. I believe this is the future of coal fired steel plants and power plants. Steel will always need Metallurgic coal, but power stations can use all grades of coal and need technologies like this one to clean it up, extract useable gas and diesel and help it burn more efficiently.
money in gasification. Look how well ADES does and it finances its facilities by borrowing money. Shares up 39 cents.
Clean Coal completed the first year of operation of two facilities that produce RC for four boilers at two power plants in the Midwest. In their first year of operation, the two new facilities generated approximately $20M in revenue and about $9M in operating income for ADA. Over the next nine years, these facilities are expected to generate between $8M-$9M in annual operating income for ADA. The Company also announced that in June, Clean Coal installed the first of 16 planned new facilities at a plant that is expected to burn up to four million tons of RC each year. Clean Coal expects to install and commence operating the remaining 11 planned RC facilities in the fall, and is establishing schedules with customers in support of that goal. Clean Coal is financing the construction and installation of the 16 new RC facilities with a $10M line of credit established with a commercial bank.
Gasify! Coal super cycle. No more nucs. Tax credits for carbon emission cuts. Aussies, and all others will follow suit.