* American Electric Power shelved similar plant in July
* DOE boosts funding from $350 million
WASHINGTON, Sept 28 The U.S. Department of
Energy said on Wednesday it will provide a Texas clean coal
plant with $450 million in funding months after a power company
shelved plans for a similar plant in West Virginia.
The DOE said in a document filed with the Federal Register
on Wednesday it will provide Summit Texas Clean Energy LLC with
$450 million through a cooperative agreement, up from its
original plan to provide $350 million.
Summit plans to design, build and operate the coal-burning
power plant which will capture about 90 percent of its
greenhouse gas emissions and keep them from reaching the
"The CO2 will be delivered through a regional pipeline
network to existing oil fields in the Permian Basin of West
Texas for use in enhanced oil recovery (EOR) by third-parties,"
the DOE said in the document.
The DOE is funding the plant through a federal clean coal
power program that was created during the administration of
George W. Bush in 2005. The program received some of its
funding under President Barack Obama's stimulus act.
Carbon capture and sequestration, or CCS, has been touted
as one possible way to reduce the country's greenhouse gas
emissions. But it has suffered a series of setbacks, including
high costs, and the failure by the U.S. Senate to pass an
energy bill that would have put a cost on emitting carbon
dioxide and other greenhouse gases.
In July, American Electric Power Co Inc (AEP.N) shelved
plans to capture heat-trapping emissions from a coal plant in
West Virginia, citing that failure to put a cost on emissions.
[ID:nN1E76D0OY]. The move was a blow to U.S. efforts to rein in
emissions from plants using CCS.
The DOE's funding of the Texas plant will cover about 26
percent of the project's total capital cost of more than $1.7
billion, and the rest is expected to come from private sources,
(Reporting by Timothy Gardner; Editing by David Gregorio)