US energy secretary Samuel W. Bodman and Henry Paulson, secretary of the treasury have announced $1 billion in tax credits to promote clean coal generation and gasification technologies
Nine companies have received the tax credits in order to accelerate advanced coal-based power generation and gasification technologies.
The Energy Policy Act of 2005 (EPAct) authorised the Department of Treasury to provide tax credits as incentives to move advanced technologies to the marketplace while congressional authorisations included a total of $1.65 billion in tax credits to spur investment in the advanced clean coal facilities, including $350 million in tax credits for advanced gasification projects.
The first round of tax incentive winners include an IGCC project by Duke Energy and Carson Hydrogen Power, based in California. Credits were allocated to two IGCC bituminous coal projects ($133.5 million each), an IGCC lignite project ($133 million), two non-IGCC advanced coal electricity generation projects ($125 million each) and four gasification projects (amounts ranging from $40.663 million to $130 million).
Approximately $650 million of additional tax credits will be available for allocation to clean coal projects in 2007. Of this total, $267 million will be available for IGCC subbituminous coal projects, $133 million will be available for IGCC lignite projects, $250 million will be available for non-IGCC advanced coal electricity generation projects and $337,000 will be available for gasification projects.