Illinois adds spark to FutureGen bid
SPRINGFIELD – The state's bid for the $1 billion "coal plant of the future" just got even sweeter.
On Tuesday, Gov. Rod Blagojevich announced a $17 million state grant that can be used for a wide range of FutureGen project costs. The money comes from a clean coal technology fund.
"We are very excited about the news," said Brian Moody, executive director of Tuscola Economic Development Inc. "We think it just further solidifies Illinois' status as one of the premier states for siting the FutureGen project."
One-third of the potential sites for the $1 billion FutureGen plant are in Illinois – Tuscola, Mattoon, Effingham and Marshall. But Kentucky, North Dakota, Ohio, Texas, West Virginia and Wyoming are also vying to land the plant.
The FutureGen Industrial Alliance, a group of private companies working in conjunction with the federal government, expects to narrow its list of 12 potential sites to a small group of finalists this summer, with a final decision to come in fall 2007.
"It was a rigorous process to qualify a site under the criteria established by the FutureGen Alliance," said a statement from Jack Lavin, director of the Illinois Department of Commerce and Economic Opportunity. "We are proud that four different Illinois locations seem to have met that test, which is more than any other state, and that we are moving forward with proposals that offer some variety to the alliance as it refines its site demands."
In addition to the $17 million grant, the state has offered the FutureGen Industrial Alliance a $15 million sales tax exemption on materials and equipment purchased through local enterprise zones and $50 million in below-market-rate loans. More funds could be made available through the Illinois Coal Competitiveness Program, the Illinois Clean Coal Institute and a public-private partnership called the Clean Coal Review Board. Local officials are considering additional offers, such as local property and sales tax abatements or possible land donation, according to DCEO spokesman Andrew Ross.
"We think that it's the nation's most aggressive investment package," Ross said.
Moody agreed.
"We're getting close to $100 million in incentives for the project," he said. "We haven't, obviously, seen the other states' proposals, but from everything I've been able to find out from media reports so far, this is the most generous package that I've seen to date."
The competition is expected to be fierce. FutureGen is supposed to generate as many as 1,300 construction jobs with a combined pay of $250 million. Another 150 permanent jobs would be available once the plant operations begin.
The idea is to build the world's cleanest power plant, with near-zero emissions. The facility would convert coal into a gas that can be turned into enough electricity to power 150,000 average U.S. homes. It will also produce a hydrogen gas that can be used in refineries or clean-burning hydrogen fuel cells. Carbon dioxide, the unwanted byproduct of this process, would be permanently stored in geologic formations deep underground, a process known as "sequestration."
In a written statement, Blagojevich said he believed Illinois is the ideal location for FutureGen.
"We have the coal, the geology and the strong support on the federal, state and local level for bringing the world's cleanest coal plant to Illinois," he said. "But we also understand that such an enormous public-private project requires additional financial support in order to get it off the ground. The package we have put together is another clear indication of our willingness to invest in the cutting-edge technologies that will expand markets for Illinois coal, put more people to work and protect our environment."
In December, Illinois formed an alliance with Indiana to help boost its chances of landing FutureGen. In a memorandum of understanding signed by both governors, Indiana agreed to back Illinois' application to host the actual FutureGen plant, while Illinois agreed to try to locate some of the carbon dioxide sequestration work associated with the project in Indiana.
