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The United States CCS Financing Overview

The Obama White House has committed to providing financial assistance to a multitude of CCS projects across the United States. In February 2009, the American Recovery and Reinvestment Act (AARA) designated $3.4 billion for CCS programs. This funding was broken down into three major sources; $1.52 billion for a competitive bidding for industrial CCS projects, $800 million for the Clean Coal Power Initiative (CCPI), and $1billion for FutureGen.

Industrial CCS Projects

There are 3 large scale industrial CCS projects that have been selected by the U.S. Department of Energy (DOE) to receive money from the ARRA:

These projects were selected for funding in October 2009 as part of a $1.4 billion effort to capture carbon dioxide from industrial sources for storage or beneficial use. The first phase of research and development included $21.6 million in Recovery Act funding and $22.5 million in private funding for a total initial investment of $44.1 million. Following successful completion of their Phase 1 activities, the three projects have now entered into Phase 2 for design, construction, and operation. The second phase of these projects includes $612 million in Recovery Act funding and $368 million in private sector cost-sharing for a total investment of $980 million.

Clean Coal Power Initiative

The Clean Coal Power Initiative ( CCPI) was created in 2002 to simultaneously protect the environment and address the long-term reliability of the US energy supply. It is a public-private cost sharing partnerships that aims to demonstrate commercial scale clean coal generation technologies. CCPI currently has five active projects in Phase 3 funding:

Funding was initially offered to Southern Energy Plant Barry but this was declined as there was problem financing the rest of the project. NRG's Plant Parish has received the grant instead.

DOE's compiled CCPI and ICCS Project Fact Sheets 2011 [PDF]

FutureGen

FutureGen is planned to be a zero emissions coal fueled power plant in Illinois. The project is coordinated by the FutureGen Industrial Alliance, a non-profit group who represents the power and coal industries. FutureGen was awarded $1 billion from the ARRA in August 2010 after significant changes were made to the project. Each of the eleven alliance members will be required to together contribute between $4-600 million over the life of the project.

US Regional Partnerships

The Department of Energy has also developed 7 Regional Partnerships. These partnerships serve to support projects in their regions with ownership from local stakeholders.

There are 3 phases to the program: Phase 1: Characterization; Phase 2: Validation; and Phase 3: Development. Phase 3, the development phase, is the implementing and operation of 9 large scale CCS projects capturing more than 1 MT CO2/ Yr and demonstration of the safe, and effective storage of the CO2 in major geologic formations in the US and Canada. Phase 3 efforts are underway throughout the partnerships and injections are in process at Cranfield. These large-scale injections represent a major expansion of the 21 small-scale geologic storage tests that the Partnerships are implementing.

• Southwest Regional Partnership (SWP): Entrada

• Southeast Regional Partnership (SECARB): Cranfield, Citronelle

• Plains CO2 Reduction Partnership (PCOR): Fort Nelson, Williston Basin

• Midwest Geological Sequestration Consortium: Decatur

• Midwest Regional Carbon Sequestration Partnership: Otsego County

• West Coast Regional Partnership: Kimberlina

• Big Sky Regional Partnership: Kevin Dome (The original project was Riley Ridge but this project is now cancelled as the project received money from the DOE but never got initiated)

Task Force on Carbon Capture and Storage

The CCS Task Force is an interagency task force on carbon capture and storage to develop a more coordinated Federal strategy to aid in the development and rapid deployment of CCS technology. The task force is responsible for delivering a plan to bring between five and ten commercial demonstration projects to fruition by 2016. For the Task Force report please click here

 

Date Modified April 3, 2012

 

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