Duke plans to invest around $121m for a detailed characterization of storage sites, which includes drilling of multiple wells. The project includes exploring sequestration in deep saline aquifers as well as use in enhanced oil recovery and storage in depleted oil or gas fields. Carbon is used to increase oil and gas production underground.
Previously the company has received permission to study a portion of carbon capture emitted from the plant. The US House of Representatives recently passed a comprehensive measure to control CO2 emissions and, following the congressional break, would take up the issue.
Jim Stanley, president of Duke Energy Indiana, said: “Indiana gets more than 90% of its electric power from coal, and our country has hundreds of years of reserves. This will be one of the nation’s first demonstrations of carbon capture and storage at a power plant. It uses advanced technology to turn coal into a cleaner-burning gas, and strips out pollutants before the gas is burned.”
Customer rate increase of around 1% is phased between 2010 and 2013. If the study is successful, the company would request for implementation of carbon capture and storage with the state utility regulators.
During January 2009, the company has applied for a Department of Energy Clean Coal Power Initiative Round 3 grant, which is expected to arrange 50% cost of CCS for the Edwardsport project. Through federal stimulus the US government enhanced funding of this DOE initiative, and the company plans to refile its application in August, 2009. If received, the funds would be used to reduce customer rate impacts of the project.
The company generates 6,500MW of power and serves approximately 775,000 customers.
