Facts:

Main developer: Summit Power

Summit Power Group is developing a 400MW, integrated gasification combined cycle (IGCC) plant at Penwell, Texas, which will also incorporate CCS technology. As of early 2012, the project - known as the Texas Clean Energy Project (TCEP) - was expected to be fully operational in 2015. A 6-month delay to groundbreaking was also reported at this time.

Milestone EPC and operational contracts were signed in December 2011. Other progress includes major utility firm CPS Energy signing an agreement in January 2012 to purchase about 200MW of power from TCEP - the first US purchase of low-carbon power by a utility from a coal-based power plant fitted with carbon capture. The project FEED study has been carried out by Fluor Corporation, which is no longer involved in the initiative.

The project will be sited above the Permian Basin in West Texas, where the world’s largest and most active enhanced oil recovery (EOR) operations are in progress. It will be the first coal-fired power facility in the US to combine both IGCC and CCS, and could well be a world first. The US Department of Energy considers it a major demonstration project in its pursuit of clean energy.

The technologies and components to be used have already proven in commercial operation, including twin Siemens gasifiers, which will be modified to use syngas from gasified coal to fuel the power plant. This process will, in itself, have significantly fewer emissions than a conventional coal-fired plant and aims for a 90% capture rate - or 2.5 million tonnes per year of CO2. Some of the power output will be used to run project equipment, compress CO2 and produce other products, including ammonia.

Siemens and Linde have joined forces to provide engineering, major equipment and construction for the project. The air separation technology is widely used for commercial production of pure gas from the atmospheric constituents of air. The Rectisol gas clean-up process has been in use for decades. The Haber ammonia production process is almost 100 years old and is used in ammonia plants.

Financing

The total capital cost of the project is estimated at $2.2 billion. In December 2009, US Energy Secretary Stephen Chu announced that TCEP would receive a $350 million and, in August 2010, it was awarded a further $100 million. The awards comprise funding from both the Clean Coal Power Initiative and the American Recovery and Reinvestment Act.

Timing

The project reached a major milestone in February 2012 when it finalised EPC contracts with Siemens Energy, Selas Fluid Processing Corporation and SK Engineering & Construction - with a total value of around $2 billion. A 15-year operations and maintenance contract was also signed with Linde’s Gases Division. Around the same time, there were local reports that the groundbreaking date was six months behind schedule.

A DoE decision in October 2011 has cleared the way for public funds to be spent beyond engineering and design studies. A final investment decision is now anticipated in early 2012 with project construction following.

Siemens, Fluor and Selas Fluid Processing Corporation began the FEED study on 30 June 2010, and an environmental impact statement is being prepared for the US Department of Energy. Construction was scheduled for the fourth quarter of 2011, but has yet to begin. The project is expected to become operational in 2015. TCEP received its air quality permit in December 2010.

More information and press releases

Groundbreaking delayed, Odessa American, February 2012

Contract milestones, February 2012

TCEP power supply deal, January 2012

Summit press release on award of air quality permit, 29 December 2010

Summit press release, launch of FEED study,  19 July 2010

US Dept of Energy announces support, 4 December 2009

Contact

Laura Miller, director Texas Projects, 001-214 763 0600, email lmiller@summitpower.com

 

Storage:

A capture rate of 90 per cent – or 2.7 million tonnes of CO2 per year – is expected. The captured gas will be treated, compressed and then transported by pipeline to oilfields in the Permian Basin of West Texas, for use in enhanced oil recovery operations.

The Bureau of Economic Geology (BEG) at the University of Texas will be designing a CO2 sequestration monitoring, verification and accounting programme that will help achieve not just EOR but CCS for that contributes to climate policy goals.

Companies involved

Homepage:

http://texascleanenergyproject.com/

News about Texas Clean Energy Project (TCEP)