US CCS Background
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.
There are 3 industrial demonstration projects that are funded by the USA Government to test large-scale industrial scale CCS. The three projects are expected to capture and store a total of 6.5 million tons of CO2 per year, and increase domestic production of oil by more than 10 million barrels of oil per year by the end of the demonstration period in September 2015.
The projects were initially selected in October 2009 to obtain funding from a $1.4 billion effort to capture CO2 from industrial sources for storage or beneficial use. The first phase of research and development included $21.6 million in ARRA funding and $22.5 million in private funding for a total initial investment of $44.1 million. After a successful completion the projects moved onto phase 2 includes design, construction, and operation. Phase 2 costs includes $612 million in ARRA funding and $368 million in private sector cost-sharing for a total investment of $980 million. Descriptions of the projects follow:
Decatur- Arthur Daniels Midland Company (Operating since 2011)
Port Arthur- Air Products (Operating since 2013)
Lake Charles- Leucadia Energy (Cancelled in 2014)
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 $686 million in Recovery Act funding and $368 million in private sector cost-sharing for a total investment of $980 million.
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. In December 2009, the U.S. Department of Energy announced the selection of three new projects with a value of $3.18 billion to accelerate the development of advanced coal technologies with carbon capture and storage at commercial-scale. These projects will help to enable commercial deployment to ensure the United States has clean, reliable, and affordable electricity and power. An investment of up to $979 million, including funds from the American Recovery and Reinvestment Act, will be leveraged by more than $2.2 billion in private capital cost share as part of the third round of the CCPI.
Currently the DOE share for the remaining three projects is $1.03 billion (of a total of over $6 billion for total expected costs). With the withdrawal of three CCPI Round 3 projects, DOE’s share of the total program costs shrank from over 22% to approximately 17%.
Active projects in the CCPI
NRG's Energy WA Parish Petra Nova Project (Currently under construction)
Withdrawn Projects from the CCPI
Basin Electric's Beulah
DOE's compiled CCPI and ICCS Project Fact Sheets 2011 [PDF]
FutureGen was 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.
FutureGen was awarded its Class VI CO2 injection well permits from the EPA in 2014.
The project was officially cancelled in 2016 after loosing its DOE financing in 2015. The DOE financing was withdrawn because of a deadline under the 2009 federal stimulus package, DOE had pledged $1 billion to complete the $1.65 billion initiative. With the lack of government funding the project was unable to proceed and was cancelled.
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): Farnsworth -Operating
• Midwest Geological Sequestration Consortium: Decatur- Operating
• Midwest Regional Carbon Sequestration Partnership: Northern Reef Trend
• Big Sky Regional Partnership: Kevin Dome
•West Coast Regional Partnership: Kimberlina - Dormant
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