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Illinois, Texas Enter Next Stage In Efforts To Land FutureGen

ST. LOUIS (AP) – Illinois’ duel with Texas for the world’s first new near-zero-emissions coal power plant entered its next phase when delegations from both states were briefed about what’s expected of them environmentally in trying to land the billion-dollar project.

The meetings, which opened in Pittsburgh, amounted to a road map for what the states – each with two sites vying for what’s known as FutureGen – must do in helping ensure the Energy Department drafts environmental-impact statements within a year, about one-third of the typical timeframe.

“ It’s a very accelerated process,” Jack Lain, Illinois’ economic-development chief, said by telephone during a lunchtime interview.

Lain said each state must submit environmental and geological specifics about their potential FutureGen sites by Nov. 17, two weeks before those technical, scientific details are forwarded to the Energy Department.

The briefings came a week after two Illinois sites – Effingham and Marshall – and six others were eliminated from contention, leaving locations near Mattoon and Tuscola in Illinois and near Odessa and in Jewett in Texas as finalists.

Federal officials expect to select a site by September 2007. The project has the potential to create more than 1,000 construction jobs and 150 permanent ones.

The plant, expected to be running by 2012, would turn coal into a hydrogen-rich gas to produce electricity for about 275,000 single-family homes. The process would not release carbon dioxide and other atmospheric pollutants usually associated with coal-burning plants.

Scientists have blamed the burning of fossil fuels as one of the main causes of global warming.

Illinois officials said they’re ready to back up their candidates with as much as $80 million in incentives, from grants to low-interest loans.

“We definitely think we have two winning locations,” Lain said. He was joined in Pittsburgh by Bill Hoback, chief of the state’s Office of Coal Development, and representatives of Mattoon, Tuscola and the Illinois State Geological Survey.

Texas has committed $20 million in incentives but also has assumed liability arising from FutureGen’s plan to virtually eliminate air pollution by storing carbon dioxide waste in underground reservoirs.

The FutureGen Alliance, including 10 energy companies from the United States, China and Australia, already has committed more than $250 million to the project, and the U.S. government is putting up about $700 million.




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