FutureGen agreement reached - Montana, Wyoming and other states being considered

December 6, 2005

Montana, Wyoming and other coal-producing states are expected to intensify their efforts to land a futuristic, $1 billion power plant after the Energy Department and an international group of energy companies formally agreed to build the low-emission project known as FutureGen.

Secretary of Energy Samuel Bodman on Tuesday announced the agreement to build a plant that will turn coal into electricity and hydrogen while capturing pollutants, including carbon dioxide, and serve as a prototype for future emissions-free power plants.

Plans call for the FutureGen plant to begin operations in 2012 and generate 275 megawatts of electricity, enough to match a medium-size coal-fired plant and supply power to about 275,000 U.S. households.

The FutureGen Industrial Alliance, which will contribute $250 million to the project, includes Kennecott Energy of Gillette, Wyo., five other power companies from around the country and two in Australia and China. The alliance plans to issue a site selection solicitation early next year, to develop a shortlist by mid-2006, and choose the final site in mid- to late 2007.

By NOELLE STRAUB Gazette Washington Bureau