CATF wants federal PPA?

July 12th, 2010

Oh, how bizarre can it get.  Sometimes, I’m left speechless in disbelief.   We all know about Clean Air Task Force’s toadying for coal, they’re the Clean Air Task FArce, but this?  It’s just going too far.

CLEAN AIR TASK FORCE THINKS THE FEDS SHOULD SIGN A PPA FOR FUTUREGEN ELECTRICITY!

Really, here’s a quote from the Press Release:

Use an Executive Order or similar means to require the federal government to buy electricity from the proposed FutureGen plant in Mattoon, Illinois. This recommendation would provide the financial certainty needed for the project to break ground.

And I’m sure that Tom Micheletti, of Excelsior Energy/Mesaba Project infamy, is not happy about this, not happy about it because they’re proposing the FutureGen and not Mesaba:

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IGCC plants have problems getting Power Purchase Agreements because they are NOT economical, even with all the federal and state subsidies, with all the perks, with all the circumvention of regulation, as the ALJ’s noted in their Recommendation to the PUC on the Mesaba Project PPA, it’s just TOO COSTLY!  And, plus, it’s NOT in the public interest!

ALJ RECOMMENDATION – DENIAL OF PPA

But there goes Clean Air Task Farce saying the feds, US, we the taxpayers, should buy up the FutureGen electricity?  Give me a break!  Really, here it is from the horse’s mouth(the other end of the horse is further below) — this CATF press release just out:

REPORT CALLS FOR COMPREHENSIVE ARRAY OF NEW DEMONSTRATION PLANTS, $20 BILLION IN NEW FUNDING

Here’s the entire CATF report:

The Carbon Capture and Storage Imperative

Contact the White House, Executive Office of the President, and tell the staff what you think of CATF’s brilliant idea and what you think of CATF’s lobbying for coal:

CLICK HERE TO SEND A MESSAGE TO THE WHITE HOUSE

And this article about it:

Expert: Feds should buy FutureGen’s power output

A respected environmental advocacy group has recommended the federal government alter the funding strategy for FutureGen.

John Thompson, director of the Coal Transition Project of the CATF, a non-profit organization based in Boston dedicated to reducing atmospheric pollution, believes the Obama administration should commit $1 billion in stimulus money to another carbon capture sequestration facility in Indiana with a 630 megawatt electrical capacity and commit instead to purchasing the electrical output over 20 or 30 years of the 250 megawatt FutureGen power plant proposed for a site west of Mattoon.

“FutureGen needs a commitment from the administration that is ironclad. This is a way to ultimately break the logjam on FutureGen funding. The stimulus money would be better spent at the Edwardsport IGCC project in Indiana that is more than 50 percent complete,” Thompson said in a phone interview Friday morning, referring to recommendations on coal energy solutions in a 70-page report send to President Barack Obama’s Carbon Capture and Sequestration Task Force.

The final decision by the Department of Energy on FutureGen funding has been postponed by at least six months. Last month, FutureGen Alliance CEO Mike Mudd said there is a gap between funding commitments by DOE and the alliance corporate partners of several hundred million dollars for the clean energy project with an estimated price tag of more than $2 billion.

Thompson, who lives in Southern Illinois, and his colleagues on the CATF believe federal support through a full-term energy purchase totaling several billion dollars would overcome concerns on cost overruns and other factors holding up a final agreement on FutureGen so far.

“We’re not trying to say FutureGen is a lower priority. But the facts are what they are,” Thompson explained. “The dangerous aspect of using stimulus money is what if there are cost overruns on FutureGen. It could come up short on construction or during the early stage of operations. We are worried it will become an orphan.”

Thompson said a federal electrical output purchase agreement from a FutureGen plan means the project really has a future. It can be a key part of the effort to institute carbon capture and sequestration in energy production.

He said CCS efforts in the United States have felt pressure from different sources, ranging from utilities reluctant to commit on a major scale to environmental groups wanting to phase out coal use as soon as possible.

“This has been delayed too long. The federal government needs to finally step up. With a stroke of the pen, the Obama administration can say the controversy is over,” Thompson said.

The CCS Task Force is expected to offer its recommendations in coming weeks, possibly in August. Thompson fears the political climate might cause more delays due to opposition to global warming warnings.

“The response in Washington is to rein in spending just at the time we need to complete these CCS projects. Almost of of them are in an advanced stage to break ground or fold up and blow away,” Thompson said. “The Republicans are saying global warming does not exist and many Democrats are saying we can solve our energy problems with wind power. This will require uncomfortable truths that won’t go away. And the public must realize coal won’t go away.”

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