Posted by: Lawyer Sanders | December 7, 2009

Kentucky attorney Sanders says AEP will receive $334 million in tax dollars to install commercial scale carbon capture system in New Haven, WV.

US DOE announced that American Electric Power (AEP) will receive $334 million in tax dollars to pay part of the costs of installing the nation’s first commercial-scale carbon dioxide capture and storage system on its Mountaineer coal-fired power plant in New Haven, W.Va.

AEP must negotiate a contract with DOE to spell out how the utility will spend the money to remove at least 90 percent of the carbon dioxide from 235 megawatts of the plant’s 1,300 megawatts of capacity.

The captured carbon dioxide, approximately 1.5 million metric tons per year, will be treated and compressed, then injected into suitable geologic formations for permanent storage approximately 1.5 miles below the surface. The system will begin commercial operation in 2015, according to the company’s application for public tax dollars.

The $334 million requested by AEP is about half of the estimated cost of the system.

AEP and Alstom began operating a smaller-scale validation of the technology in September at the Mountaineer plant. That system captures up to 90 percent of the carbon dioxide from a slipstream of flue gas equivalent to 20 megawatts of generating capacity.

The captured carbon dioxide, more than 100,000 tons a year, is being compressed and injected into suitable geologic formations for permanent storage approximately 1.5 miles below the surface.  No federal funds are being used for the validation project.

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