The $20.5m faicility is being administered by the US Department of Energy’s National Energy Technology Laboratory’s Carbon Capture Program (DOE-NETL), which will provide $15m towards the project.

The remaining amount is being co-funded by Southern Company and others.

ADA president and CEO Michael Durham the company said, "ADA has an established track record of engaging in collaborative partnerships with DOE-NETL and our power generating customers to develop and commercialize innovative solutions to reduce emissions from coal, a low-cost, abundant and secure national fuel resource."

The pilot plant is scheduled become operational in October 2013 and is planned for the demonstration of technical, economical and energy benefits of carbon dioxide capture technology.

ADA’s regenerable solid-sorbent-based clean coal technology reduces the amount of energy required to capture carbon dioxide.

Southern Company chief environmental officer Chris Hobson said, "This project is an important addition to Southern Company’s portfolio of industry-leading carbon capture technology research and development."

Full-scale commercial design of the plant will be decided based on the results of the pilot testing.