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Wyoming seeks $1 bln clean coal power plant project

Posted on: Thursday, 4 May 2006, 13:09 CDT

SAN FRANCISCO (Reuters) - Wyoming has proposed a site in the coal-producing Power River Basin for a $1 billion project to build the world's cleanest coal-burning power plant.

Gov. Dave Freudenthal submitted the state's application on Wednesday to build the FutureGen project as part of a consortium of the U.S. Department of Energy and big utilities and mining companies, including American Electric Power, Southern Co., and Peabody Energy.

The 275-megawatt plant would burn coal to produce electricity as well as hydrogen. The project would separate heat-trapping greenhouse gases from the plant's exhaust and inject them into underground reservoirs to prevent them from entering the atmosphere.

The Bush administration is looking to hydrogen as an energy source to fuel a new breed of clean-running cars to help reduce dependence on oil.

"We have been at the forefront of energy production for many years, and the state has several of the physical characteristics needed to make this work," Freudenthal said.

Wyoming proposed a 640-acre site in the Powder River Basin with two of the largest coal mines within 10 miles.

Carbon dioxide produced by the plant could also be used in nearby enhanced oil recovery operations, Freudenthal he said.

Other states including Pennsylvania, Kentucky, Ohio, Texas, Colorado, Illinois and West Virginia also are contenders for the project.

A short list of plant locations is expected late this summer for environmental reviews with a final selection expected about a year after.

Construction could begin in 2009, with operations beginning in 2012, the governor's office said.


Source: REUTERS

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