Fact Sheet: DOE to Demonstrate Cutting-Edge Carbon Capture and…

Fact Sheet: DOE to Demonstrate Cutting-Edge Carbon Capture and
Sequestration Technology at Multiple FutureGen Clean Coal Projects
FACT: The International Energy Agency's (IEA) World Energy Outlook estimates that the world's
primary energy needs will grow by 55% by 2030, with fossil fuels remaining a significant source of
global energy supply. This IEA report also predicts a remarkable 73% increase in global demand for
coal, driven largely by China and India's growing economies.

FACT: In 2007, the U.S. consumed 1.1 billion tons of coal. By 2030, U.S. demand for coal is
expected to grow by 48 percent, thus increasing to an estimated 1.7 billion tons, according to the
U.S. Department of Energy's (DOE) Energy Information Administration.

FACT: Since 2001, the Bush Administration has invested more than $2.5 billion on clean coal
research and development (R&D) technology.

FACT: Clean coal technology is a vital component of the Bush Administration's vision for a reliable,
affordable and more secure energy future, and FutureGen is one part of a comprehensive, long-term
strategy to diversify sources of energy and meet growing energy demand with clean, cutting-edge
technologies.

Today, the U.S. Department of Energy announced its intention to restructure FutureGen by
equipping multiple new clean coal power plants with advanced carbon capture and storage
(CCS) technology. On February 27, 2003, the federal government announced FutureGen, a $1
billion initiative to create a coal-based power plant focused on demonstrating a revolutionary clean
coal technology that produces hydrogen and electricity and mitigates greenhouse gas emissions.
The FutureGen project was initiated in response to the National Energy Policy of May 2001, which
emphasized the need for diverse and secure energy sources that could largely be provided by
America's most abundant domestic energy resource, coal.

While FutureGen's goal for a technological solution to produce electricity from coal in an
environmentally responsible way remains the same, the cost of the FutureGen project has almost
doubled and could rise even higher. Technological research and development (R&D) and
demonstration advancements over the past five years allow FutureGen to evolve from a large-scale
R&D testing lab to multiple commercial-scale demonstration plants.

FutureGen's restructured approach proposes federal funding for CCS technology at multiple
new commercial-scale clean coal power plants. It includes engagement with the
international community which will remain integral to advancing CCS technology on a global
scale. Under this approach, multiple commercial plants would each produce at least 300
megawatts of electricity and jointly these projects will capture and safely sequester at least
double the amount of carbon dioxide annually compared to the concept announced in 2003.
To this end, the Department today issued a Request for Information (RFI) for industry input and
plans to issue a competitive solicitation to provide financial assistance for multiple, commercial-scale
CCS demonstrations integrated with market-ready Integrated Gasification Combined Cycle (IGCC)
(or other clean technology) coal power plants. The restructured approach will focus on separating
carbon dioxide (CO2) for CCS, and does not include hydrogen production, which the concept
announced in 2003 included. Hydrogen production for commercial use will remain an important
component of the Hydrogen Fuel Initiative and other research initiatives aimed at fundamentally
changing the way we power our vehicles.

R&D research and development advancements in IGCC and CCS technology have made
FutureGen's restructured approach possible. This approach will provide more electricity from
multiple clean coal plants, at least twice as much CO2 sequestered, a more cost-effective strategy to
limit taxpayer exposure to escalating costs, and provide for wider use and more rapid
commercialization of CCS technology than the concept announced in 2003. This more focused
approach provides an all-around better investment for Americans.

Energy & Environmental Benefits:
   · Sequester at least double the amount of CO2 than the concept announced in 2003. Each
      demonstration plant would sequester CO2 at rate of approximately one million tons per year
      once operational ­ nearly enough in compressed liquid form to fill the Empire State Building
      in New York.
   · Generate enough electricity per plant to power 400,000 households.
   · Reduce emissions of sulfur dioxide, nitrogen oxide, mercury and other gases that may be
      harmful to the environment.
   · Build on technological R&D advancements that have been made since the concept was
      announced in 2003, which includes small-scale carbon sequestration projects and IGCC
      research.
   · Accelerate timeframe for full-scale commercial operation of the IGCC-CCS plants, enabling
      market use as soon as the plants are commissioned in the 2015-2016 timeframe.

Financial Benefits:
   · Limits taxpayer financial exposure. Under the restructured approach, DOE will join industry
      in its efforts to build IGCC plants by providing funding for the addition of CCS technology to
      multiple plants. Under the concept announced in 2003, taxpayers would have funded 74% of
      the total project cost, as well as potentially 74%of all cost escalations.
   · Provides demonstration of IGCC-CCS technology, enabling the FutureGen initiative to test
      the technology integration and clear hurdles associated with early technology demonstration
      to allow rapid commercial deployment after 2015.
   · Leverages the Administration's investment of more than $2.5 billion in clean coal technology
      since 2001.
   · Establishes commercial feasibility and formulates a model that industry could use to deploy
      commercial-scale plants that each sequester at least one million metric tons of carbon
      dioxide annually.

Coal ­ our nation's most abundant domestic resource ­ will remain a major source of energy
in the years to come, helping meet President Bush's goal to reduce our dependence on
foreign energy supplies. This restructured approach enables increased use of clean coal
technologies to produce baseload electricity and aims to spur greater commercial use of cutting-
edge IGCC-CCS technology.

Keeping America competitive requires reliable, affordable, and clean supplies of energy. The
President's Advanced Energy Initiative aims to reduce our reliance on foreign oil by changing the
way we power our cars, homes and businesses. Part of this effort requires continued investments in
clean coal-fired plants, revolutionary solar and wind technologies, and clean, safe nuclear energy.