Durbin, Johnson and Lavin Work with Local Tuscola and Mattoon Officials to Outline Citiies' Strategies to Win New FutureGen Plant

DURBIN, JOHNSON AND LAVIN WORK WITH LOCAL TUSCOLA AND MATTOON OFFICIALS TO OUTLINE CITIES' STRATEGIES TO WIN NEW FUTUREGEN PLANT

Thursday, August 10, 2006

[TUSCOLA AND MATTOON] - U.S. Senator Dick Durbin (D-IL), U.S. Representative Tim Johnson (R-IL), DCEO Director Jack Lavin and others met today with local officials in Tuscola and Mattoon to discuss the recent selection of a local site as a finalist for the location of a $1 billion, first-of-a-kind, near-zero emissions coal-fueled power plant known as FutureGen. In today's meeting, local, state and federal officials came together to discuss potential next steps for the project.

"FutureGen is the number one federal energy priority for downstate Illinois, and we are here today to work with local, state and federal officials to make downstate Illinois the number one choice for the FutureGen Alliance," said Durbin. "Tuscola and Mattoon have the coal and the commitment needed to make this vision a reality."

"I am encouraged at the coordination among local, state and congressional offices," Johnson said. "There are certain elements that must be in place to make this project occur, such as the geology, transportation network, a positive policy framework and economic incentives. From both sides of the aisle, our leaders have worked hard to make this happen. There are less tangible assets in these communities that may be less quantifiable but are nonetheless essential ingredients, and those involve the integrity and Midwestern work ethic of the people who will build and operate this state-of-the-art facility that is so critical to our economies and our environment."

Two weeks ago, The Department of Energy selected two Illinois communities - Tuscola and Mattoon - to move forward to the next step of the selection process. Sites were evaluated on criteria, including the size of the site, the site's access to transportation routes, and the site's proximity to geographically well-suited areas. Since April, teams of renowned U.S. and international scientists have reviewed the proposals from 12 communities vying for the FutureGen project.

FutureGen is a $1 billion government-industry project which will produce the first emissions-free coal generation plant of its kind. The Department of Energy developed a short list of the most qualified states earlier this year, and is expected to make a final site selection in mid- to late- 2007.

The President's FY2007 budget made a commitment of $54 million for FutureGen. An additional $200 million will become available on October 1, 2007 to support continued funding. Non-Federal sources will be required to match funds for initial planning and research at least 20 percent.

Illinois has almost one-eighth of the coal reserves in the United States and one-quarter of the nation's bituminous coal reserves. The Illinois coal industry produces approximately 35 million tons of coal and generates more than $1 billion in gross revenues. Currently, recoverable coal reserves in the state of Illinois amount to more than 30 billion tons. The valuable mineral underlies 65 percent of the state's surface.

Durbin and Johnson noted that Illinois geology is also well suited for the carbon-trapping technology that the FutureGen project would need to develop. Illinois is home to oil and gas reserves and deep saline aquifers that can capture and sequester carbon dioxide.

In addition, Southern Illinois University operates its Coal Research Center in Carbondale- one of the top such centers in the country - which conducts a wide range of studies that deal with the commercial development of coal. The center's work includes improvements of coal cleaning processes, the reduction of air pollution from coal-fired power plants, the reduction of solid waste residues from coal burning, and the development of products from those residues.

In early December of 2005, Secretary Bodman announced that the Department of Energy would be moving forward with the project, after signing an agreement with the FutureGen Industrial Alliance, a group of coal and energy companies with investment commitments to the project. The FutureGen Initiative was initially announced by President Bush in February 2003. Over the next year, site selection, design activities, and environmental analyses will lay the groundwork for final project design, construction, and operation.

http://durbin.senate.gov/record.cfm?id=261648&&