Issue date: 3/12/09 Section: News

A financial error was found in a FutureGen analysis and price estimates of the power plant are now as high as $2.3 billion. FutureGen officials, such as Mike Mudd, left, were still confident that FutureGen would be coming as of Feb. 5 of last year. (File Photo/The Daily Eastern News)

The U.S. Department of Energy made a $500 million math error when it decided to pull support from the proposed FutureGen experimental power plant in Mattoon, according to a report released by the Government Accountability Office on Monday.

The GAO did not state what FutureGen might cost today.

Angela Griffin, president of Coles Together, said the report confirms the integrity and validity of the project.

"It also confirms our steadfast contention that the abandonment of the project by the DOE was not based on sound science or rationale arguments," she said. "We're hopeful this report and others like it will lead to a release of the Record of Decision and that the mismanagement of this important internationally-supported project is a thing of the past."

Illinois Sen. Dick Durbin said the report was more evidence the Bush administration had erred in stopping the project.

"We always knew the DOE's logic was flawed," Durbin said in a statement. "Now it turns out their math was wrong too."

Energy Secretary Steven Chu acknowledged that when the plant was canceled, a faulty cost analysis put the price of it at $1.8 billion.

Chu recently said he would consider restoring FutureGen. He indicated changes would need to be made, but did not address specifics.

He said that because of commodity costs and other factors, some estimates now put the price of the plant at $2.3 billion.

The technology is worth testing, Chu said.

"I'm looking at how do you bring down the cost so we can go ahead," he said.

Michael J. Mudd, the chief executive officer of the FutureGen Alliance, welcomed an evaluation from the DOE.

"We look forward to an objective evaluation by the Energy Department," he said in a statement. "Once they review the project, we believe they will conclude FutureGen at Mattoon is shovel-ready and will deliver carbon capture and sequestration technology the fastest in the world."

The Illinois' congressional delegation has urged the Obama administration to revive the project, arguing it would boost economic development in coal-rich, east-central Illinois.

"But for the unwavering and resolute support of the Illinois' congressional delegation, led by Senator Durbin and Congressman (Tim Johnson, R-Urbana), and the patience and fortitude of the FutureGen Alliance, we wouldn't be in a position today, with the release of this report, to make the most of the prospects and potential it affords," Griffin said.

The near-zero emissions power plant in Mattoon would use a coal-gasification process to convert coal into hydrogen and carbon dioxide. The hydrogen created would power a turbine that would create electricity. A second turbine would create electricity from the steam from the first turbine.

The plant will capture and store 90 percent of the carbon dioxide emissions in the deep geological reservoirs more than one mile underground in the Mt. Simon Sandstone reservoir.

Creating 175 megawatts of electricity, the plant would be able to provide electricity to 150,000 homes.

Mattoon was selected as the site in 2007 rather than Tuscola and two proposed sites in Texas.

The DOE pulled funding last year after investing $174 million.


The Associated Press contributed to this report.

Matt Hopf can be reached at 581-7942 or at mthopf@eiu.edu.

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