Univ. of Kentucky Creates Consortium to Seek Coal Carbon Dioxide Emissions

April 27, 2009 -- LEXINGTON, Ky. − The University of Kentucky Center for Applied Energy Research (CAER) has created a consortium with government agencies, electric utilities and their research organizations to seek cost-effective technologies to reduce and manage carbon dioxide emissions from coal-fired power plants. It is anticipated that Kentucky state government and the industrial partners will provide $24 million over 10 years to support the research.

At a news conference today, accompanied by representatives from the industrial partners, Kentucky Gov. Steve Beshear and UK Pres. Lee T. Todd Jr. announced the consortium, which builds on ongoing carbon management research at CAER initiated by E.ON US in 2006.

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The consortium is designed to split the cost of research into large-scale carbon dioxide capture systems, which often has shown itself to be too expensive and high risk for a single utility or government agency to undertake. By teaming the state, UK, several electricity-generating companies and the utilities’ national research organization, the consortium will share the costs and risks over the 10-year life of the project.

The founding industry members of the consortium are E.ON US, Duke Energy, Kentucky Power Co., East Kentucky Power Cooperative and the Electric Power Research Institute (EPRI). Each member will contribute $200,000 a year to the consortium.

The Kentucky Department of Energy Development and Independence has shown its support with a one-to-one match up to $1 million annually, as approved by the Kentucky General Assembly in the 2008 budget.

Kentucky House Majority Leader Rocky Adkins (D-Sandy Hook) said, “I am proud to have sponsored legislation that addresses carbon capture research and creates this new consortium. Kentucky, as a major coal producing state, must stay in the forefront of energy issues and develop technologies to reduce carbon emissions. This collaboration will help us do that by continuing the work of the CAER on an even larger scale."

State Energy Sec. Len Peters explained the reason for the state’s support. “To achieve our goal of being a national energy leader, Kentucky must address carbon dioxide emissions from our coal-based electric generating units. With effective carbon management, we can utilize our abundant natural resources in an environmentally sound manner. Partnerships such as this further the Governor’s comprehensive energy plan, which aims to reduce Kentucky’s overall carbon dioxide emissions 40 percent by 2025.”

“Most experts agree that carbon limitations will be imposed on fossil fuel-burning power plants in the future. Teaming with the state program will benefit the partner utilities in their response to a carbon-constrained world,” said Rodney Andrews, director of CAER.

The consortium will pursue three major carbon management research projects:

* Post-combustion carbon dioxide capture, using a pilot plant at CAER that was funded by E.ON US;

* Large-scale carbon dioxide capture, in a portable unit to be constructed and operated at the power plants of consortium industry members; and

* Development of a new combustion technology process for solid fuels like coal and biomass that could provide a more efficient power production technology for next-generation power plants.

Gov. Beshear enthusiastically embraced the consortium concept. “Given the unique challenges Kentucky faces in a carbon-constrained world, our state will have to make a concerted effort to control emissions of carbon dioxide, while recognizing that coal is a vital part of our energy mix. This partnership between our utilities and CAER provides a way to efficiently mobilize our limited resources,” Beshear said.

Executives from the utilities voiced their general consensus:

“The environmental landscape of the electric utility industry faces unprecedented change that will require a multi-faceted approach to address current and future energy challenges,” said Victor A. Staffieri, chairman, CEO and president of E.ON U.S. “Meeting these challenges requires a collective effort, such as the one put forth by the formation of this consortium. E.ON U.S. brings a strong global set of expertise to this partnership, which will build on the work we helped start in 2006 with CAER.”

Julie Janson, president of Duke Energy Kentucky agreed. “The business of energy is complex and constantly evolving. That’s why Duke Energy is pleased to join forces with one of the Commonwealth’s leading research institutions, progressive government officials, and fellow energy providers to research technologies that are affordable and good for the environment.”

John Twitchell, senior vice president of generating and transmission operations of East Kentucky Power Cooperative added, "EKPC is dedicated to providing energy to its members that is cleaner and better for our environment. Supporting carbon capture research not only has the potential to significantly benefit our environment, it can benefit Kentucky by continuing to utilize our abundant coal supply. It’s Kentucky's energy and Kentucky's future."

“Kentucky Power and our parent, American Electric Power, are committed to the continued use of coal as a low cost, reliable and readily available source of fuel for our generation fleet. We fully understand the environment in which we operate, however, and realize we must develop the technologies and systems to use coal more effectively in a carbon-constrained world. Through partnerships such as CAER and the development of internal systems like AEP’s carbon sequestration project at our Mountaineer Plant in West Virginia, Kentucky Power hopes to be on the forefront of carbon capture research that will enable us to sustain the use of coal for the benefit of our customers, the Commonwealth and nation,” said Tim Mosher, president and chief operating officer of Kentucky Power Co.

Rosa Yang, vice president, Office of Innovation at EPRI, the national research arm of the utilities, said, "The challenge of reducing climate change gas emissions from the electricity generation sector requires the skills and creativity of a wide range of scientists and engineers -- those in academia, private research organizations, industrial process suppliers, and the power industry. Further, given the magnitude of this challenge, it is essential for government and industry to pool their resources. The CAER collaboration is an excellent example of such collaboration and a role model for other partnerships that EPRI intends to create or join."

Source: Kentucky Governor