Summit Power aims for September financial close on Texas IGCC

Summit Power Group is hoping for a financial closing in the September time frame on its coal-fueled Texas Clean Energy Project, with a construction groundbreaking shortly after, said project official Laura Miller in a March 26 e-mail response to an inquiry from GenerationHub.

The Texas Clean Energy Project (TCEP) is what the company refers to as a “NowGen” facility that will incorporate carbon capture and sequestration (CCS) technology in a first-of-a-kind commercial power plant. TCEP will capture 90% of its carbon. The current schedule for the plant to go commercial is late 2016.

The company has said TCEP’s configuration and proven components also make it a “reference plant design” for the electric power and chemical sectors worldwide. TCEP will generate power through integrated gasification combined cycle (IGCC) technology while also producing other commercial products from gasified coal, including urea for fertilizer, sulfuric acid, and compressed CO2 for enhanced oil recovery (EOR) in the Permian Basin.

TCEP will be sized to produce at least 400 MW gross output from the power island, but normal baseload operation is designed to be 377 MW, the project website said. Of that, 105.7 MW will be used on site to run the major project equipment. Another 15.7 MW will be used to compress CO2 and an additional 42.2 MW will be used to produce urea for fertilizer. The remaining 214 MW will be used to serve electric utility loads in Texas, mainly a 200-MW power contract with CPS Energy.

The total cost of TCEP will be more than $2.5bn. Out of that, $450m will be provided by the U.S. Department of Energy (DOE) under its Clean Coal Power Initiative.

The TCEP is one of only a handful of coal-fired power projects still on the drawing boards of U.S. power producers, now that Obama Administration rules on emissions (air, water and combustion wastes) are getting so tight. A pending U.S. Environmental Protection Agency rule, for example, would limit new coal-fired plants to the CO2 emissions of new gas-fired plants, which pretty much means CCS technology would need to b e installed on any new coal plant. That rule, which is not out in final form yet, does grant a grace period for currently proposed coal projects to get into construction before the requirement kicks in. The TCEP would apparently comply with the proposed EPA rule even without the grace period.

About Barry Cassell 20414 Articles
Barry Cassell is Chief Analyst for GenerationHub covering coal and emission controls issues, projects and policy. He has covered the coal and power generation industry for more than 24 years, beginning in November 2011 at GenerationHub and prior to that as editor of SNL Energy’s Coal Report. He was formerly with Coal Outlook for 15 years as the publication’s editor and contributing writer, and prior to that he was editor of Coal & Synfuels Technology and associate editor of The Energy Report. He has a bachelor’s degree from Central Michigan University.