The FutureGen Alliance has signed a $553m cooperative agreement with the US Department of Energy (DOE) associated with FutureGen 2.0, an oxy-combustion repowering project that will use carbon capture and storage (CCS) technology.

FutureGen 2.0 is backed by a $1bn federal funding from the American Recovery and Reinvestment Act for the construction of a near-zero emissions coal-fueled power plant.

As per the agreement, the FutureGen Alliance will cooperate with Ameren Energy Resources to develop the world’s first commercial-scale oxy-combustion power plant with CCS.

The Alliance will have primary management responsibility to site, develop, and operate a permanent CO2 storage site along with the required pipeline from the power plant.

The storage site will be designed to accept and permanently sequester more than 1 million tons of CO2 per year with room for future expansion to accommodate CO2 from additional sources.