The new step will result in upgradation of a coal-fired power plant in Meredosia, with oxy-combustion technology, which helps to capture more than 1 million tons of CO2 ever year, that is more than 90% of the plant’s carbon emissions.

Apart from this, the new step will also reduce other emissions to near-zero levels.

The project will test oxygen separation technology and exhaust processing technology after combustion at power plant scales.

Under the project, CO2 will be safely shipped and securely stored underground at a nearby storage site, using pipeline technology.

US Senator Dick Durbin said the Department of Energy’s announcement in regards with the FutureGen project shows a strong commitment from the Obama administration to create jobs and demonstrate the future of low-carbon-emission coal power right in central Illinois.

"I thank Governor Quinn and all of the Illinois and industry stakeholders for their continued leadership on this issue," Durbin added.

"I join them in remaining committed to making FutureGen a reality, and to putting Illinois and the United States at the forefront of cutting-edge technology to improve the environment and create good-paying jobs."