| In the first five-year phase, three competitively selected projects must achieve a 70 percent carbon capture rate, as well as a greenhouse gas emissions standard that is equivalent to the lifecycle greenhouse gas emissions of conventional fuels. In the second five-year phase, three projects must achieve an 80 percent carbon capture rate, as well as a greenhouse gas emissions standard that is 15 percent below the lifecycle greenhouse gas emissions of conventional fuels.
The bill would give special consideration to projects that incorporate at least a 5 percent biomass feedstock, by weight, to further reduce a project's greenhouse gas footprint, as well as for those projects that participate in the Department of Energy's Carbon Sequestration Regional Partnership Program.
The bill authorizes $10 billion in loans to eligible facilities that can be used to cover 100 percent of the costs associated with reducing greenhouse gas emissions, but cannot exceed 50 percent of a project's total cost. The bill also authorizes $120 million in funding to help projects complete necessary front-end engineering and design work, with a maximum of $20 million being available for each eligible facility. The bill also provides tax incentives, including a $20 credit for each metric ton of carbon dioxide that is geologically stored and a $10 credit for each metric ton of carbon dioxide used in Enhanced Oil Recovery operations.
Baard Energy Announces CTL Technology Deal
Baard Energy LLC, an energy project development company headquartered in Vancouver, Wash., announced in late September that it had acquired a technology license from Shell U.S. Clean Coal Energy Inc. to use the Shell Coal Gasification Process in the gasification portion of its proposed $5 billion coal-to-liquid fuel (CTL) project located in Columbiana County, Ohio.
This project plans to produce over 50,000 barrels per day of jet and diesel fuel, and other liquid products from coal and biomass feedstock. As a licensor, Shell will provide technical information and services for the installation of the Shell Coal Gasification Process technology at Baard Energy's Ohio River Clean Fuels project.
New federal interagency task force backs CTL production
An interagency federal task force comprised of senior administration officials and state governors recently released a strategic plan to increase the use of coal to liquid (CTL) fuels, by permitting improved access to energy resources on public lands and streamlining permitting processes. The Task Force on Strategic Unconventional Fuels, created by the 2005 Energy Policy Act, forwarded its report to Congress on Oct. 8.
The task force includes the secretaries of Defense, Energy, the Interior and five governors.
The report calls on the federal government to assist the private sector with research and development projects that accelerate the development and use of these fuels and projects to further improve the environmental performance of these fuels. The report also backs establishing a fiscal regime to attract private development, as well as a new permitting system that will expedite industry development.
Source: http://www.futurecoa.... |
