Siemens Energy to supply coal gasification technology
Siemens Energy, Inc. has been chosen to provide the coal
gasification technology for the Taylorville Energy Center
(TEC), the 730-megawatt advanced clean coal generating
plant being developed near Taylorville, Illinois.
The (TEC) will be one of the nation’s first commercial-scale,
coal gasification plants with carbon capture and storage
Tenaska, managing partner for the $3.5 billion project,
has signed equipment contracts and licensing agreements
with Siemens for four gasifiers that will convert Illinois
coal into substitute natural gas. The gas will be used
for electricity generation or fed into the interstate
natural gas pipeline system.
TEC’s integrated gasification combined-cycle technology
also will capture and provide storage for at least 50
percent of the carbon dioxide (CO2) that would otherwise
enter the atmosphere.
Said Michael Suess, CEO of the fossil power generation
division of Siemens Energy, “By capturing and storing
at least 50 percent of the CO2 it produces, TEC will
have emissions comparable to a natural gas-fueled plant.”
TEC is in advanced development, with the front end engineering
and design (FEED) work required by the Illinois Clean
Coal Portfolio Standard law under way. The FEED is expected
to include more than 100,000 work hours by the time its
facility cost report is presented to the Illinois Commerce
Commission in early 2010. TEC is projected to be completed
and in operation in 2014.
The United States Department of Energy has supported
the TEC by choosing Tenaska to proceed into the term
sheet negotiation phase under the DOE Loan Guarantee
Program. Upon completion of due diligence and negotiation
of the termsheet and guarantee documentation, the Taylorville
project expects to receive a federal government guarantee
of its debt of up to $2.579 billion, depending on the
final project costs and capital structure, which will
greatly reduce financing costs.