Project: Kemper County IGCC
Company/Alliance: Mississippi Power, Southern Energy, KBR
Location: Kemper County, Mississippi
Feedstock: Coal: Mississippi lignite
Size: 582 MW: 3.5 Mt of CO2 captured annually
Capture Technology: Pre-combustion IGCC plant using TRIG™ technology (65% capture)
CO2 Fate: Pipeline for onshore EOR
Timing: Construction started June 2010, Project start-up date in May 2015
The Kemper County is now projected to cost almost $5.6 billion. Initially the project was estimated to cost $2.4 billion.
Mississippi Power received a $270 million grant from the Department of Energy for the project (CCPI Phase 2) and $133 million in investment tax credits approved by the Internal Revenue Service. Although by missing its projected deadline it will loose some tax benefits.
April 2013: Southern Company announced that it has withdrawn it's application for a federal loan guarantee for the power plant its subsidiary Mississippi Power is building in Kemper County. Southern says that Mississippi Power can borrow money elsewhere at a lower rate than available under the loan from the U.S. Department of Energy, cutting the costs of the plant.
July 2013: Mississippi Power Company announced that the cost is increasing at least another $160 million.
October 2013, Southern announced that the construction deadline of May 2014 would not be met, although it was expecting to have project completion later in 2014. The 60 miles of CO2 pipeline for EOR were complete as were the 5 miles of natural gas pipeline.
April 2014: A cost increase of $235 million puts the project cost at $5.5 billion. More than double the original projected cost.
September 2014: Additional cost increase of $30 million to pay for material and labor during the plant's startup phase, including contract workers to help test equipment and systems
Kemper County, one of the US flagship CCS projects has been beset with delays and cost-increases. Currently the price tag is at $5.5 billion. Additional delays and set-backs have caused Southern Company to postpone the start-up until May 2015. The cause of these cost increases and time delays are due to a number of causes, including miscalculating pipe thickness, length, quantity and metallurgy. After these changes to the pipes were made, additional changes needed to be done to the support structures.
The Kemper County CCS project is being used as one of two examples used by the EPA to demonstrate the feasibility of CCS on coal-fired power plants in order to reduce their CO2 emissions. Under the US EPA’s proposed guidelines, future coal plants would need to emit no more than 1,100 pounds of carbon dioxide per megawatt-hour of power produced. The Kemper County CCS project will emit well below that amount.
The pulverized coal power station will be a new construction with a base lignite capacity of 524 MW and NG Capacity 58 MW. The plant will capture 65% of total emissions resulting in 3.5 million tons per year. The Kemper County energy facility will have fewer particulate, sulfur dioxide and mercury emissions than traditional pulverized coal plants.
This project was one of two selected in the second round of the US Department of Energy's Clean Coal Power Initiative. It received US$270 million in funding to demonstrate advanced power generation systems using IGCC technology.
Transport Integrated Gasification (TRIG™) technology was developed by Southern Company and KBR in conjunction with the DOE. It is a coal-gasification method designed to be cleaner and cheaper than its competitors. TRIG technology is designed to work efficiently with lower rank coals, for example the Mississippi Lignite. The Kemper County IGCC Project is a scale-up of a test plant already in operation at the Power Systems Development Facility (PSDF) in Wilsonville, AL.
The Kemper County IGCC plant is situated in close proximity to an estimated 4 billion tons of mineable Mississippi lignite. Mississippi lignite is a low rank coal with high moisture of high ash content. These type of coals make up half the proven reserves in the US and worldwide. It is estimated that 160 million tons of coal will be needed for Kemper IGCC to operate for 40 years. The project is also located very close to mature Mississippi oil fields.
The Mississippi Commission voted April 29, 2010 to allow the plant to go forward if Mississippi Power Company (a division of Southern Company) agreed to cap costs at $2.4 billion. MPC had previously proposed a cost cap of $3.2 billion.
Project Link: Mississippi Power Kemper County IGCC website
Other Sources and Press Releases:
Costs rise by another $30 million at Kemper plant (September 2014)
Intended showcase of clean-coal future hits snags (May 2014)
Southern agrees to coal research with Chinese firm (April 2014)
Kemper plant will not meet construction schedule (October 2013)
Miss. Power says more overruns likely at Kemper (July 2013)
SOUTHERN CEO ON KEMPER: COMPANY MAY HAVE ‘MISSED THIS ONE’ (June 2013)
Carbon Capture and Sequestration: Research, Development, and Demonstration at the U.S. Department of Energy (June 2013)
S&P DOWNGRADES SOUTHERN CO.’S OUTLOOK DUE TO KEMPER WOES (May 2013)
Southern Co replaces executives in wake of Kemper cost overrun (May 2013)
SOUTHERN OFFICIAL BACKS COMPANY’S INVESTMENT IN KEMPER IGCC PLANT (May 2013)
Southern decides against federal loan for Kemper coal plant (April 2013)
MISS. POWER SAYS KEMPER ON BUDGET; SIERRA CLUB QUESTIONS COSTS (March 2013)
Mississippi allows Southern Co to keep building $2.8 billion coal plant (March 2012)
Miss. Supreme Court reverses Southern Co coal project approval (March 2012)
Mississippi Power will keep building Kemper County (March 2012)
KRB TRIG technology web page
DOE CCPI project fact sheets 2011 [PDF]
Denbury enters into Kemper County CO2 contract (March 2011)
Kemper County Brochure [PDF]
US Energy Secretary wants Kemper approval (May 2010)
Mississippi Power receives additional federal support (May 2010)
Mississippi Power going ahead with plant (May 2010)
IGCC power plant costs released (March 2010)
Date Modified September 15, 2014