Showing posts with label clean coal. Show all posts
Showing posts with label clean coal. Show all posts
Thursday, October 27, 2011
Tuesday, August 2, 2011
Gov Quinn Signs Bill to Create Coal Gasification Plant in Southern Illinois
Governor Quinn Signs Law to Advance Clean Energy Project in Southern Illinois
Power Holdings Project Will Provide Major Boost to Regional
Economy and Create More Than 1,650 Jobs
MT. VERNON – August 2, 2011. Governor Pat Quinn today signed legislation that will help develop a state-of-the-art coal gasification facility in southern Illinois, creating 1,650 jobs and reducing carbon emissions by an estimated 90 percent. Following principles the Governor outlined in the spring legislative session, the new law will ensure consumer protections, create jobs and safeguard the environment.
“This important project will help revive the coal industry in southern Illinois while ensuring that Illinois remains a leader in the development of state-of-the-art, clean energy facilities,” Governor Quinn said. “We must continue to do everything we can to strengthen the state’s ongoing economic recovery through projects that create jobs while safeguarding the environment and protecting consumers.”
Senate Bill 2169, sponsored by Sen. James Clayborne, Jr. (D-East St. Louis) and former Rep. Dan Reitz (D-Steeleville), provides the framework for Power Holdings LLC to build a $2.3 billion facility in Jefferson County that will convert coal to pipeline-quality synthesis natural gas (SNG). The new law will utilize a pricing formula that shields customers throughout Illinois from historically volatile swings in the cost of heating their homes with natural gas from traditional sources.
Power Holdings, which has already obtained an active air quality permit from the Illinois Environmental Protection Agency, will use an ultra-clean coal gasification technology for removal of harmful gases and set a new standard for commercial energy projects by capturing and safely storing more than 90 percent of the plant's carbon emissions.
Power Holdings expects to generate more than $10 billion in economic activity and create more than 1,650 jobs, including approximately 1,100 construction jobs, 300 permanent mining and 250 permanent plant jobs. The plant will use at least four million tons of Illinois coal per year.
“Projects like Power Holdings provide us with a rare opportunity to hedge our own future prices for natural gas, using an affordable domestic resource, Illinois coal, which will be mined just a few miles away,” Illinois Department of Commerce and Economic Opportunity Director Warren Ribley said.
The legislation, which takes effect immediately, was modified from a previous bill considered earlier this year to include input from the Governor, the Citizens Utility Board, and other stakeholders. The new law includes significant consumer protections, including a rate cap and a reconciliation account to pass savings back to consumers. Power Holdings will also have to prove to state regulators that its construction and carbon sequestration costs, as well as operating expenses, are reasonable through annual reports and plant reviews. Pricing based on those costs will be guaranteed for 10 years, and Illinois' natural gas distributors will spread those costs evenly across their customer bases.
Power Holdings Project Will Provide Major Boost to Regional
Economy and Create More Than 1,650 Jobs
MT. VERNON – August 2, 2011. Governor Pat Quinn today signed legislation that will help develop a state-of-the-art coal gasification facility in southern Illinois, creating 1,650 jobs and reducing carbon emissions by an estimated 90 percent. Following principles the Governor outlined in the spring legislative session, the new law will ensure consumer protections, create jobs and safeguard the environment.
“This important project will help revive the coal industry in southern Illinois while ensuring that Illinois remains a leader in the development of state-of-the-art, clean energy facilities,” Governor Quinn said. “We must continue to do everything we can to strengthen the state’s ongoing economic recovery through projects that create jobs while safeguarding the environment and protecting consumers.”
Senate Bill 2169, sponsored by Sen. James Clayborne, Jr. (D-East St. Louis) and former Rep. Dan Reitz (D-Steeleville), provides the framework for Power Holdings LLC to build a $2.3 billion facility in Jefferson County that will convert coal to pipeline-quality synthesis natural gas (SNG). The new law will utilize a pricing formula that shields customers throughout Illinois from historically volatile swings in the cost of heating their homes with natural gas from traditional sources.
Power Holdings, which has already obtained an active air quality permit from the Illinois Environmental Protection Agency, will use an ultra-clean coal gasification technology for removal of harmful gases and set a new standard for commercial energy projects by capturing and safely storing more than 90 percent of the plant's carbon emissions.
Power Holdings expects to generate more than $10 billion in economic activity and create more than 1,650 jobs, including approximately 1,100 construction jobs, 300 permanent mining and 250 permanent plant jobs. The plant will use at least four million tons of Illinois coal per year.
“Projects like Power Holdings provide us with a rare opportunity to hedge our own future prices for natural gas, using an affordable domestic resource, Illinois coal, which will be mined just a few miles away,” Illinois Department of Commerce and Economic Opportunity Director Warren Ribley said.
The legislation, which takes effect immediately, was modified from a previous bill considered earlier this year to include input from the Governor, the Citizens Utility Board, and other stakeholders. The new law includes significant consumer protections, including a rate cap and a reconciliation account to pass savings back to consumers. Power Holdings will also have to prove to state regulators that its construction and carbon sequestration costs, as well as operating expenses, are reasonable through annual reports and plant reviews. Pricing based on those costs will be guaranteed for 10 years, and Illinois' natural gas distributors will spread those costs evenly across their customer bases.
Wednesday, March 30, 2011
President Obama's Plan for Securing America's Energy Future
Remarks of President Barack Obama—As Prepared for Delivery
A Secure Energy Future
Georgetown University
March 30, 2011
As Prepared for Delivery—
We meet here at a tumultuous time for the world. In a matter of months, we’ve seen regimes toppled and democracy take root across North Africa and the Middle East. We’ve witnessed a terrible earthquake, catastrophic tsunami and nuclear emergency batter a strong ally and the world’s third largest economy. And we’ve led an international effort in Libya to prevent a massacre and maintain stability throughout the broader region.
As Americans, we are heartbroken by the lives that have been lost as a result of these events. We are moved by the thirst for freedom in many nations, as well as the strength and perseverance of the Japanese people. And of course, it’s natural to feel anxious about what all this means for us.
One area of particular concern has been the cost and security of our energy. In an economy that relies on oil, rising prices at the pump affect everybody – workers and farmers; truck drivers and restaurant owners. Businesses see it hurt their bottom line. Families feel the pinch when they fill up their tank. For Americans already struggling to get by, it makes life that much harder.
But here’s the thing – we’ve been down this road before. Remember, it was just three years ago that gas prices topped $4 a gallon. Working folks haven’t forgotten that. It hit a lot of people pretty hard. But it was also the height of political season, so you had a lot of slogans and gimmicks and outraged politicians waving three-point-plans for two-dollar gas – when none of it would really do anything to solve the problem. Imagine that in Washington.
The truth is, of course, was that all these gimmicks didn’t make a bit of difference. When gas prices finally fell, it was mostly because the global recession led to less demand for oil. Now that the economy is recovering, demand is back up. Add the turmoil in the Middle East, and it’s not surprising oil prices are higher. And every time the price of a barrel of oil on the world market rises by $10, a gallon of gas goes up by about 25 cents.
The point is, the ups and downs in gas prices are usually temporary. When you look at the long-term trends, though, there will be more ups than downs. That’s because countries like India and China are growing at a rapid clip. And as two billion more people start consuming more goods, and driving more cars, and using more energy, it’s certain that demand will go up a lot faster than supply.
So here’s the bottom line – there are no quick fixes. And we will keep on being a victim to shifts in the oil market until we get serious about a long-term policy for secure, affordable energy.
We’ve known about the dangers of our oil dependence for decades. Presidents and politicians of every stripe have promised energy independence, but that promise has so far gone unmet. I’ve pledged to reduce America’s dependence on oil too, and I’m proud of the historic progress we’ve made over the last two years towards that goal. But we’ve also run into the same political gridlock and inertia that’s held us back for decades.
That has to change.
We cannot keep going from shock to trance on the issue of energy security, rushing to propose action when gas prices rise, then hitting the snooze button when they fall again. The United States of America cannot afford to bet our long-term prosperity and security on a resource that will eventually run out. Not anymore. Not when the cost to our economy, our country, and our planet is so high. Not when your generation needs us to get this right.
It is time to do what we can to secure our energy future.
So today, I’m setting a new goal: one that is reasonable, achievable, and necessary. When I was elected to this office, America imported 11 million barrels of oil a day. By a little more than a decade from now, we will have cut that by one-third.
I set this goal knowing that imported oil will remain an important part of our energy portfolio for quite some time. And when it comes to the oil we import from other nations, we can partner with neighbors like Canada, Mexico, and Brazil, which recently discovered significant new oil reserves, and with whom we can share American technology and know-how.
But our best opportunities to enhance our energy security can be found in our own backyard. And we boast one critical, renewable resource the rest of the world cannot match: American ingenuity.
To make ourselves more secure – to control our energy future – we will need to harness that ingenuity. It is a task that won’t be finished by the end of my presidency, or even the next. But if we continue the work that we have already begun over the last two years, we won’t just spark new jobs, industries and innovations; we will leave your generation and future generations a country that is safer, healthier, and more prosperous.
Today, my Administration is releasing a Blueprint for A Secure Energy Future that outlines the comprehensive national energy policy we’ve pursued since the day I took office. And here at Georgetown, I’d like to talk in broad strokes about how we will secure that future.
Meeting this new goal of cutting our oil dependence depends largely on two things: finding and producing more oil at home, and reducing our dependence on oil with cleaner alternative fuels and greater efficiency.
This begins by continuing to increase America’s oil supply. Last year, American oil production reached its highest level since 2003. And for the first time in more than a decade, oil we imported accounted for less than half the liquid fuel we consumed.
To keep reducing that reliance on imports, my Administration is encouraging offshore oil exploration and production – as long as it’s safe and responsible. I don’t think anyone’s forgotten that we’re not even a year removed from the largest oil spill in our history. I know the people of the Gulf Coast haven’t. What we learned from that disaster helped us put in place smarter standards of safety and responsibility – for example, if you’re going to drill in deepwater, you’ve got to prove that you can actually contain an underwater spill. That’s just common sense.
Today, we’re working to expedite new drilling permits for companies that meet these standards. Since they were put in place, we’ve approved 39 new shallow water permits; and we’ve approved an additional 7 deepwater permits in recent weeks. When it comes to drilling onshore, my Administration approved more than two permits last year for every new well that the industry started to drill. So any claim that my Administration is responsible for gas prices because we’ve “shut down” oil production might make for a useful political sound bite – but it doesn’t track with reality.
In fact, we are pushing the oil industry to take advantage of the opportunities they already have. Right now, the industry holds tens of millions of acres of leases where it’s not producing a drop – sitting on supplies of American energy just waiting to be tapped. That’s why part of our plan is to provide new and better incentives that promote rapid, responsible development of these resources. We’re also exploring and assessing new frontiers for oil and gas development from Alaska to the Mid- and South Atlantic. Because producing more oil in America can help lower oil prices, create jobs, and enhance our energy security.
But let’s be honest – it’s not the long-term solution to our energy challenge. America holds only about two percent of the world’s proven oil reserves. And even if we drilled every drop of oil out of every one of those reserves, it still wouldn’t be enough to meet our long-term needs.
All of this means one thing: the only way for America’s energy supply to be truly secure is by permanently reducing our dependence on oil. We have to find ways to boost our efficiency so that we use less oil. We have to discover and produce cleaner, renewable sources of energy with less of the carbon pollution that threatens our climate. And we have to do it quickly.
In terms of new sources of energy, we have a few different options. The first is natural gas. As I mentioned earlier, recent innovations have given us the opportunity to tap large reserves – perhaps a century’s worth – in the shale under our feet. Now, we have to make sure we’re doing it safely, without polluting our water supply. And that’s why I’m asking my Energy Secretary, Steven Chu, to work with other agencies, the natural gas industry, states, and environmental experts to improve the safety of this process. I don’t know if you’ve heard, but he’s got a Nobel Prize for physics, after all. He likes to tinker on this stuff in his garage on the weekend.
But the potential here is enormous. It’s actually an area of broad bipartisan agreement. Last year, more than 150 Members of Congress from both sides of the aisle proposed legislation providing incentives to use clean-burning natural gas in our vehicles instead of oil. They were even joined by T. Boone Pickens, a businessman who made his fortune on oil. So I ask them to keep at it and pass a bill that helps us achieve this goal.
Another substitute for oil that holds tremendous promise is renewable biofuels – not just ethanol, but biofuels made from things like switchgrass, wood chips, and biomass.
If anyone doubts the potential of these fuels, consider Brazil. Already, more than half – half – of Brazil’s vehicles can run on biofuels. And just last week, our Air Force used an advanced biofuel blend to fly an F-22 Raptor faster than the speed of sound. In fact, the Air Force is aiming to get half of its domestic jet fuel from alternative sources by 2016. And I’m directing the Navy and the Departments of Energy and Agriculture to work with the private sector to create advanced biofuels that can power not just fighter jets, but trucks and commercial airliners.
So there’s no reason we shouldn’t be using these renewable fuels throughout America. That’s why we’re investing in things like fueling stations and research into the next generation of biofuels. Over the next two years, we’ll help entrepreneurs break ground on four next-generation biorefineries – each with a capacity of more than 20 million gallons per year. And going forward, we should look for ways to reform biofuels incentives to make sure they meet today’s challenges and save taxpayers money.
As we replace oil with fuels like natural gas and biofuels, we can also reduce our dependence by making cars and trucks that use less oil in the first place. After all, 70 percent of our petroleum consumption goes to transportation. And so does the second biggest chunk of most families’ budgets. That’s why one of the best ways to make our economy less dependent on oil and save folks more money is simply to make our transportation more efficient.
Last year, we established a groundbreaking national fuel efficiency standard for cars and trucks. Our cars will get better gas mileage, saving 1.8 billion barrels of oil over the life of the program. Our consumers will save money from fewer trips to the pump – $3,000 on average over time. And our automakers will build more innovative products. Right now, there are even cars rolling off assembly lines in Detroit with combustion engines that can get more than 50 miles per gallon.
Going forward, we’ll continue working with automakers, autoworkers and states to ensure that the high-quality, fuel-efficient cars and trucks of tomorrow are built right here in America. This summer, we’ll propose the first-ever fuel efficiency standard for heavy-duty trucks. And this fall, we’ll announce the next round of fuel standards for cars that builds on what we’ve done.
To achieve our oil goal, the federal government will lead by example. The fleet of cars and trucks we use in the federal government is one of the largest in the country. That’s why we’ve already doubled the number of alternative vehicles in the federal fleet, and that’s why, today, I am directing agencies to purchase 100% alternative fuel, hybrid, or electric vehicles by 2015. And going forward, we’ll partner with private companies that want to upgrade their large fleets.
We’ve also made historic investments in high-speed rail and mass transit, because part of making our transportation sector cleaner and more efficient involves offering Americans – urban, suburban, and rural – the choice to be mobile without having to get in a car and pay for gas.
Still, there are few breakthroughs as promising for increasing fuel efficiency and reducing our dependence on oil as electric vehicles. Soon after I took office, I set a goal to have one million electric vehicles on our roads by 2015. We’ve created incentives for American companies to develop these vehicles, and for Americans who want to buy them. New manufacturing plants are opening over the next few years. And a modest, $2 billion investment in competitive grants for companies to develop the next generation of batteries for these cars has jumpstarted a big new American industry. Soon, America will be home to 40 percent of global manufacturing capacity for these batteries. And that means jobs. But to make sure we stay on the road to this goal, we need to do more – by offering more powerful incentives to consumers, and by rewarding the communities that pave the way for adoption of these vehicles.
Now, the thing about electric cars is that, well, they run on electricity. And even if we reduce our oil dependency, a smart, comprehensive energy policy requires that we change the way we generate electricity in America – so that it’s cleaner, safer, and healthier. And by the way – we also know that ushering in a clean energy economy has the potential to create an untold number of new jobs and new businesses – jobs that we want right here in America.
Part of this change comes from wasting less energy. Today, our homes and businesses consume 40 percent of the energy we use, costing us billions in energy bills. Manufacturers that require large amounts of energy to make their products are challenged by rising energy costs. That’s why we’ve proposed new programs to help Americans upgrade their homes and businesses and plants with new, energy-efficient building materials like lighting, windows, heating and cooling – investments that will save consumers and business owners tens of billions of dollars a year, free up money for investment and hiring, and create jobs for workers and contractors.
And just like the fuels we use, we also have to find cleaner, renewable sources of electricity. Today, about two-fifths of our electricity comes from clean energy sources. But I know that we can do better than that. In fact, I think that with the right incentives in place, we can double it. That’s why, in my State of the Union Address, I called for a new Clean Energy Standard for America: by 2035, 80 percent of our electricity will come from an array of clean energy sources, from renewables like wind and solar to efficient natural gas to clean coal and nuclear power.
Now, in light of ongoing events in Japan, I want to say another word about nuclear power. America gets one-fifth of our electricity from nuclear energy. It has important potential for increasing our electricity without adding carbon dioxide to the atmosphere. But I’m determined to ensure that it’s safe. That’s why I’ve requested a comprehensive safety review by the Nuclear Regulatory Commission to make sure that all of our existing nuclear energy facilities are safe. We’ll incorporate those conclusions and lessons from Japan in designing and building the next generation of plants. And my Administration is leading global discussions towards a new international framework in which all countries operate their nuclear plants without spreading dangerous nuclear materials and technology.
A Clean Energy Standard will broaden the scope of clean energy investment by giving cutting-edge companies the certainty they need to invest in America. In the 1980s, America was home to more than 80 percent of the world’s wind capacity, and 90 percent of its solar capacity. We owned the clean energy economy. But today, China has the most wind capacity. Germany has the most solar. Both invest more than we do in clean energy. Other countries are exporting technology we pioneered and chasing the jobs that come with it because they know that the countries that lead the 21st century clean energy economy will be the countries that lead the 21st century global economy.
I want America to be that nation. I want America to win the future.
A Clean Energy Standard will help drive private investment. But government funding will be critical too. Over the past two years, the historic investments we’ve made in clean and renewable energy research and technology have helped private sector companies grow and hire hundreds of thousands of new workers. I’ve visited gleaming new solar arrays among the largest in the world, tested an electric vehicle fresh off the assembly line, and toured once-shuttered factories where they’re building advanced wind blades as long as a 747 and the towers to support them. I’ve seen the scientists searching for that next big energy breakthrough. And none of this would have happened without government support.
Now, in light of our tight fiscal situation, it’s fair to ask how we’ll pay for all of it. As we debate our national priorities and our budget in Congress, we have to make tough choices. We’ll have to cut what we don’t need to invest in what we do need. Unfortunately, some want to cut these critical investments in clean energy. They want to cut our research and development into new technologies. They’re even shortchanging the resources necessary to promptly issue new permits for offshore drilling. These cuts would eliminate thousands of private sector jobs, terminate scientists and engineers, and end fellowships for researchers, graduate students and other talent we desperately need for the 21st century.
See, we are already paying a price for our inaction. Every time we fill up at the pump; every time we lose a job or a business to countries that invest more than we do in clean energy; when it comes to our air, our water, and the climate change that threatens the planet you’ll inherit – we are already paying that price. These are the costs we’re already bearing. And if we do nothing, that price will only go up.
At a moment like this, sacrificing these investments would weaken our energy security and make us more dependent on oil, not less. That’s not a game plan to win the future. That’s a vision to keep us mired in the past. And I will not accept that outcome for the United States of America.
I want to close by speaking directly to the people who will be writing America’s next great chapter – the students gathered here today.
The issue of energy independence is one that America has been talking about since before your parents were your age. On top of that, you go to school in a town that, for a long time, has suffered from a chronic unwillingness to come together and make tough choices. Because of all this, you’d be forgiven for thinking that maybe there isn’t much we can do to rise to our challenges.
But everything I have seen and experienced with your generation convinces me otherwise. I believe it is precisely because you have come of age in a time of rapid and sometimes unsettling change – born into a world with fewer walls, educated in an era of information, tempered by war and economic turmoil – that you believe, as deeply as any of our generations, that America can change for the better.
We need that. We need you to dream big. We need you to summon that same spirit of unbridled optimism, that bold willingness to tackle tough challenges and see those challenges through that led previous generations to rise to greatness – to save democracy, to touch the moon, to connect the world with our own science and imagination.
That is what America is capable of. And it is that very history that teaches us that all of our challenges – all of them – are within our power to solve.
I don’t want to leave this challenge for future presidents. I don’t want to leave it for my children. And I do not want to leave it for yours. Solving it will take time and effort. It will require our brightest scientists, our most creative companies, and, most importantly, all of us – Democrats, Republicans, and everyone in between – to do our part. But with confidence – in America, in ourselves, and in one another – I know it is a challenge we will solve.
Thank you. God Bless You, and God Bless the United States of America.
###
A Secure Energy Future
Georgetown University
March 30, 2011
As Prepared for Delivery—
We meet here at a tumultuous time for the world. In a matter of months, we’ve seen regimes toppled and democracy take root across North Africa and the Middle East. We’ve witnessed a terrible earthquake, catastrophic tsunami and nuclear emergency batter a strong ally and the world’s third largest economy. And we’ve led an international effort in Libya to prevent a massacre and maintain stability throughout the broader region.
As Americans, we are heartbroken by the lives that have been lost as a result of these events. We are moved by the thirst for freedom in many nations, as well as the strength and perseverance of the Japanese people. And of course, it’s natural to feel anxious about what all this means for us.
One area of particular concern has been the cost and security of our energy. In an economy that relies on oil, rising prices at the pump affect everybody – workers and farmers; truck drivers and restaurant owners. Businesses see it hurt their bottom line. Families feel the pinch when they fill up their tank. For Americans already struggling to get by, it makes life that much harder.
But here’s the thing – we’ve been down this road before. Remember, it was just three years ago that gas prices topped $4 a gallon. Working folks haven’t forgotten that. It hit a lot of people pretty hard. But it was also the height of political season, so you had a lot of slogans and gimmicks and outraged politicians waving three-point-plans for two-dollar gas – when none of it would really do anything to solve the problem. Imagine that in Washington.
The truth is, of course, was that all these gimmicks didn’t make a bit of difference. When gas prices finally fell, it was mostly because the global recession led to less demand for oil. Now that the economy is recovering, demand is back up. Add the turmoil in the Middle East, and it’s not surprising oil prices are higher. And every time the price of a barrel of oil on the world market rises by $10, a gallon of gas goes up by about 25 cents.
The point is, the ups and downs in gas prices are usually temporary. When you look at the long-term trends, though, there will be more ups than downs. That’s because countries like India and China are growing at a rapid clip. And as two billion more people start consuming more goods, and driving more cars, and using more energy, it’s certain that demand will go up a lot faster than supply.
So here’s the bottom line – there are no quick fixes. And we will keep on being a victim to shifts in the oil market until we get serious about a long-term policy for secure, affordable energy.
We’ve known about the dangers of our oil dependence for decades. Presidents and politicians of every stripe have promised energy independence, but that promise has so far gone unmet. I’ve pledged to reduce America’s dependence on oil too, and I’m proud of the historic progress we’ve made over the last two years towards that goal. But we’ve also run into the same political gridlock and inertia that’s held us back for decades.
That has to change.
We cannot keep going from shock to trance on the issue of energy security, rushing to propose action when gas prices rise, then hitting the snooze button when they fall again. The United States of America cannot afford to bet our long-term prosperity and security on a resource that will eventually run out. Not anymore. Not when the cost to our economy, our country, and our planet is so high. Not when your generation needs us to get this right.
It is time to do what we can to secure our energy future.
So today, I’m setting a new goal: one that is reasonable, achievable, and necessary. When I was elected to this office, America imported 11 million barrels of oil a day. By a little more than a decade from now, we will have cut that by one-third.
I set this goal knowing that imported oil will remain an important part of our energy portfolio for quite some time. And when it comes to the oil we import from other nations, we can partner with neighbors like Canada, Mexico, and Brazil, which recently discovered significant new oil reserves, and with whom we can share American technology and know-how.
But our best opportunities to enhance our energy security can be found in our own backyard. And we boast one critical, renewable resource the rest of the world cannot match: American ingenuity.
To make ourselves more secure – to control our energy future – we will need to harness that ingenuity. It is a task that won’t be finished by the end of my presidency, or even the next. But if we continue the work that we have already begun over the last two years, we won’t just spark new jobs, industries and innovations; we will leave your generation and future generations a country that is safer, healthier, and more prosperous.
Today, my Administration is releasing a Blueprint for A Secure Energy Future that outlines the comprehensive national energy policy we’ve pursued since the day I took office. And here at Georgetown, I’d like to talk in broad strokes about how we will secure that future.
Meeting this new goal of cutting our oil dependence depends largely on two things: finding and producing more oil at home, and reducing our dependence on oil with cleaner alternative fuels and greater efficiency.
This begins by continuing to increase America’s oil supply. Last year, American oil production reached its highest level since 2003. And for the first time in more than a decade, oil we imported accounted for less than half the liquid fuel we consumed.
To keep reducing that reliance on imports, my Administration is encouraging offshore oil exploration and production – as long as it’s safe and responsible. I don’t think anyone’s forgotten that we’re not even a year removed from the largest oil spill in our history. I know the people of the Gulf Coast haven’t. What we learned from that disaster helped us put in place smarter standards of safety and responsibility – for example, if you’re going to drill in deepwater, you’ve got to prove that you can actually contain an underwater spill. That’s just common sense.
Today, we’re working to expedite new drilling permits for companies that meet these standards. Since they were put in place, we’ve approved 39 new shallow water permits; and we’ve approved an additional 7 deepwater permits in recent weeks. When it comes to drilling onshore, my Administration approved more than two permits last year for every new well that the industry started to drill. So any claim that my Administration is responsible for gas prices because we’ve “shut down” oil production might make for a useful political sound bite – but it doesn’t track with reality.
In fact, we are pushing the oil industry to take advantage of the opportunities they already have. Right now, the industry holds tens of millions of acres of leases where it’s not producing a drop – sitting on supplies of American energy just waiting to be tapped. That’s why part of our plan is to provide new and better incentives that promote rapid, responsible development of these resources. We’re also exploring and assessing new frontiers for oil and gas development from Alaska to the Mid- and South Atlantic. Because producing more oil in America can help lower oil prices, create jobs, and enhance our energy security.
But let’s be honest – it’s not the long-term solution to our energy challenge. America holds only about two percent of the world’s proven oil reserves. And even if we drilled every drop of oil out of every one of those reserves, it still wouldn’t be enough to meet our long-term needs.
All of this means one thing: the only way for America’s energy supply to be truly secure is by permanently reducing our dependence on oil. We have to find ways to boost our efficiency so that we use less oil. We have to discover and produce cleaner, renewable sources of energy with less of the carbon pollution that threatens our climate. And we have to do it quickly.
In terms of new sources of energy, we have a few different options. The first is natural gas. As I mentioned earlier, recent innovations have given us the opportunity to tap large reserves – perhaps a century’s worth – in the shale under our feet. Now, we have to make sure we’re doing it safely, without polluting our water supply. And that’s why I’m asking my Energy Secretary, Steven Chu, to work with other agencies, the natural gas industry, states, and environmental experts to improve the safety of this process. I don’t know if you’ve heard, but he’s got a Nobel Prize for physics, after all. He likes to tinker on this stuff in his garage on the weekend.
But the potential here is enormous. It’s actually an area of broad bipartisan agreement. Last year, more than 150 Members of Congress from both sides of the aisle proposed legislation providing incentives to use clean-burning natural gas in our vehicles instead of oil. They were even joined by T. Boone Pickens, a businessman who made his fortune on oil. So I ask them to keep at it and pass a bill that helps us achieve this goal.
Another substitute for oil that holds tremendous promise is renewable biofuels – not just ethanol, but biofuels made from things like switchgrass, wood chips, and biomass.
If anyone doubts the potential of these fuels, consider Brazil. Already, more than half – half – of Brazil’s vehicles can run on biofuels. And just last week, our Air Force used an advanced biofuel blend to fly an F-22 Raptor faster than the speed of sound. In fact, the Air Force is aiming to get half of its domestic jet fuel from alternative sources by 2016. And I’m directing the Navy and the Departments of Energy and Agriculture to work with the private sector to create advanced biofuels that can power not just fighter jets, but trucks and commercial airliners.
So there’s no reason we shouldn’t be using these renewable fuels throughout America. That’s why we’re investing in things like fueling stations and research into the next generation of biofuels. Over the next two years, we’ll help entrepreneurs break ground on four next-generation biorefineries – each with a capacity of more than 20 million gallons per year. And going forward, we should look for ways to reform biofuels incentives to make sure they meet today’s challenges and save taxpayers money.
As we replace oil with fuels like natural gas and biofuels, we can also reduce our dependence by making cars and trucks that use less oil in the first place. After all, 70 percent of our petroleum consumption goes to transportation. And so does the second biggest chunk of most families’ budgets. That’s why one of the best ways to make our economy less dependent on oil and save folks more money is simply to make our transportation more efficient.
Last year, we established a groundbreaking national fuel efficiency standard for cars and trucks. Our cars will get better gas mileage, saving 1.8 billion barrels of oil over the life of the program. Our consumers will save money from fewer trips to the pump – $3,000 on average over time. And our automakers will build more innovative products. Right now, there are even cars rolling off assembly lines in Detroit with combustion engines that can get more than 50 miles per gallon.
Going forward, we’ll continue working with automakers, autoworkers and states to ensure that the high-quality, fuel-efficient cars and trucks of tomorrow are built right here in America. This summer, we’ll propose the first-ever fuel efficiency standard for heavy-duty trucks. And this fall, we’ll announce the next round of fuel standards for cars that builds on what we’ve done.
To achieve our oil goal, the federal government will lead by example. The fleet of cars and trucks we use in the federal government is one of the largest in the country. That’s why we’ve already doubled the number of alternative vehicles in the federal fleet, and that’s why, today, I am directing agencies to purchase 100% alternative fuel, hybrid, or electric vehicles by 2015. And going forward, we’ll partner with private companies that want to upgrade their large fleets.
We’ve also made historic investments in high-speed rail and mass transit, because part of making our transportation sector cleaner and more efficient involves offering Americans – urban, suburban, and rural – the choice to be mobile without having to get in a car and pay for gas.
Still, there are few breakthroughs as promising for increasing fuel efficiency and reducing our dependence on oil as electric vehicles. Soon after I took office, I set a goal to have one million electric vehicles on our roads by 2015. We’ve created incentives for American companies to develop these vehicles, and for Americans who want to buy them. New manufacturing plants are opening over the next few years. And a modest, $2 billion investment in competitive grants for companies to develop the next generation of batteries for these cars has jumpstarted a big new American industry. Soon, America will be home to 40 percent of global manufacturing capacity for these batteries. And that means jobs. But to make sure we stay on the road to this goal, we need to do more – by offering more powerful incentives to consumers, and by rewarding the communities that pave the way for adoption of these vehicles.
Now, the thing about electric cars is that, well, they run on electricity. And even if we reduce our oil dependency, a smart, comprehensive energy policy requires that we change the way we generate electricity in America – so that it’s cleaner, safer, and healthier. And by the way – we also know that ushering in a clean energy economy has the potential to create an untold number of new jobs and new businesses – jobs that we want right here in America.
Part of this change comes from wasting less energy. Today, our homes and businesses consume 40 percent of the energy we use, costing us billions in energy bills. Manufacturers that require large amounts of energy to make their products are challenged by rising energy costs. That’s why we’ve proposed new programs to help Americans upgrade their homes and businesses and plants with new, energy-efficient building materials like lighting, windows, heating and cooling – investments that will save consumers and business owners tens of billions of dollars a year, free up money for investment and hiring, and create jobs for workers and contractors.
And just like the fuels we use, we also have to find cleaner, renewable sources of electricity. Today, about two-fifths of our electricity comes from clean energy sources. But I know that we can do better than that. In fact, I think that with the right incentives in place, we can double it. That’s why, in my State of the Union Address, I called for a new Clean Energy Standard for America: by 2035, 80 percent of our electricity will come from an array of clean energy sources, from renewables like wind and solar to efficient natural gas to clean coal and nuclear power.
Now, in light of ongoing events in Japan, I want to say another word about nuclear power. America gets one-fifth of our electricity from nuclear energy. It has important potential for increasing our electricity without adding carbon dioxide to the atmosphere. But I’m determined to ensure that it’s safe. That’s why I’ve requested a comprehensive safety review by the Nuclear Regulatory Commission to make sure that all of our existing nuclear energy facilities are safe. We’ll incorporate those conclusions and lessons from Japan in designing and building the next generation of plants. And my Administration is leading global discussions towards a new international framework in which all countries operate their nuclear plants without spreading dangerous nuclear materials and technology.
A Clean Energy Standard will broaden the scope of clean energy investment by giving cutting-edge companies the certainty they need to invest in America. In the 1980s, America was home to more than 80 percent of the world’s wind capacity, and 90 percent of its solar capacity. We owned the clean energy economy. But today, China has the most wind capacity. Germany has the most solar. Both invest more than we do in clean energy. Other countries are exporting technology we pioneered and chasing the jobs that come with it because they know that the countries that lead the 21st century clean energy economy will be the countries that lead the 21st century global economy.
I want America to be that nation. I want America to win the future.
A Clean Energy Standard will help drive private investment. But government funding will be critical too. Over the past two years, the historic investments we’ve made in clean and renewable energy research and technology have helped private sector companies grow and hire hundreds of thousands of new workers. I’ve visited gleaming new solar arrays among the largest in the world, tested an electric vehicle fresh off the assembly line, and toured once-shuttered factories where they’re building advanced wind blades as long as a 747 and the towers to support them. I’ve seen the scientists searching for that next big energy breakthrough. And none of this would have happened without government support.
Now, in light of our tight fiscal situation, it’s fair to ask how we’ll pay for all of it. As we debate our national priorities and our budget in Congress, we have to make tough choices. We’ll have to cut what we don’t need to invest in what we do need. Unfortunately, some want to cut these critical investments in clean energy. They want to cut our research and development into new technologies. They’re even shortchanging the resources necessary to promptly issue new permits for offshore drilling. These cuts would eliminate thousands of private sector jobs, terminate scientists and engineers, and end fellowships for researchers, graduate students and other talent we desperately need for the 21st century.
See, we are already paying a price for our inaction. Every time we fill up at the pump; every time we lose a job or a business to countries that invest more than we do in clean energy; when it comes to our air, our water, and the climate change that threatens the planet you’ll inherit – we are already paying that price. These are the costs we’re already bearing. And if we do nothing, that price will only go up.
At a moment like this, sacrificing these investments would weaken our energy security and make us more dependent on oil, not less. That’s not a game plan to win the future. That’s a vision to keep us mired in the past. And I will not accept that outcome for the United States of America.
I want to close by speaking directly to the people who will be writing America’s next great chapter – the students gathered here today.
The issue of energy independence is one that America has been talking about since before your parents were your age. On top of that, you go to school in a town that, for a long time, has suffered from a chronic unwillingness to come together and make tough choices. Because of all this, you’d be forgiven for thinking that maybe there isn’t much we can do to rise to our challenges.
But everything I have seen and experienced with your generation convinces me otherwise. I believe it is precisely because you have come of age in a time of rapid and sometimes unsettling change – born into a world with fewer walls, educated in an era of information, tempered by war and economic turmoil – that you believe, as deeply as any of our generations, that America can change for the better.
We need that. We need you to dream big. We need you to summon that same spirit of unbridled optimism, that bold willingness to tackle tough challenges and see those challenges through that led previous generations to rise to greatness – to save democracy, to touch the moon, to connect the world with our own science and imagination.
That is what America is capable of. And it is that very history that teaches us that all of our challenges – all of them – are within our power to solve.
I don’t want to leave this challenge for future presidents. I don’t want to leave it for my children. And I do not want to leave it for yours. Solving it will take time and effort. It will require our brightest scientists, our most creative companies, and, most importantly, all of us – Democrats, Republicans, and everyone in between – to do our part. But with confidence – in America, in ourselves, and in one another – I know it is a challenge we will solve.
Thank you. God Bless You, and God Bless the United States of America.
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Wednesday, January 19, 2011
White House Fact Sheet on New Trade Ageements with China
FACT SHEET: U.S.–China Commercial Relations
China is a key market for U.S. exports. Those exports are generating jobs in every corner of the United States and across every major sector. These involve some of our country’s largest companies, but also an increasing number of small and medium-sized enterprises.
In preparation for this visit, several large purchases have been approved including for 200 Boeing airplanes valued at $19 billion. In addition, the Chinese government has indicated that its companies signed 70 contracts for $25 billion in U.S. exports from 12 states. These included sectors ranging from auto parts to agriculture, machinery to chemicals. In addition, 11 investment contracts were signed worth $3.24 billion. Additional, transactions were announced or showcased, exceeding $13.1 billion in total value with approximately $987.8 million in U.S. export content. These deals worth over $45 billion in increased exports will help support an estimated 235,000 jobs in the United States. These cross-border collaborations, both public and private, underpin the expanding U.S.-China commercial partnership, contributing to economic growth and development in both countries. A number of these transactions highlight the increased collaboration in such areas as clean energy and green technologies. Examples of some of the deals associated with this visit include:
· Boeing Airplane Sales: China's agreement to approve airline contracts for 200 orders covers aircraft to be delivered over a three-year period, 2011-2013. The approval, the final step in a $19B package of aircraft, will help Boeing maintain and expand its market share in the world's fastest growing commercial aircraft market. Including 737s and 777s, the agreement help supports more than 100,000 American jobs, including those in Boeing and its suppliers throughout the U.S.
· General Electric --China Ministry of Railways (MOR) Letter of Intent on High Speed Rail Technology Transfer and Purchasing Rolling Stock and Signaling Equipment: The Chinese Ministry of Rail (MOR) and General Electric (GE) have signed a letter of intent expanding upon an existing strategic partnership to bring Chinese high-speed rail technology to the United States. GE and China South Locomotive & Rolling Stock Corporation Limited (CSR) plan to form a joint venture in the United States to manufacture high- and medium-speed electric multiple unit trains. GE estimates that new business generated by the HSR JV could support up to 3,500 jobs in the United States. GE also will agree to manufacture locomotives for China and will provide components for 500 or more locomotives. The LOI will support efforts to capture new business opportunities valued at up to $1.4 billion with an estimated $360 million in U.S. export content, supporting up to 200 GE Transportation jobs.
Navistar Inc.-- JAC Truck and Engine Joint Ventures: Navistar has announced central Chinese government approval for a $400 million, 50-50 joint venture with the state-owned Anhui Jianghuai Automobile Company (JAC). Navistar will export services and parts to be used in the manufacture of diesel engines and commercial trucks. The JV will develop, manufacture, market, and sell heavy duty trucks and light to medium/heavy duty engines, primarily in China. The joint venture will be based in Hefei City, Anhui Province. Once production begins, Navistar anticipates that many components will be sourced from the United States. Direct U.S. exports during the first year of the joint venture are estimated at $15 million, but are forecast to grow significantly over the next five years as production increases. Navistar estimates the net employment benefit of the joint ventures to the United States economy at 200 jobs in the United States, mainly in the field of engineering and other services.
General Electric-Shenhua Gasification Joint Venture: GE and China Shenhua Energy Company Limited (Beijing, China) have formed a joint venture company in order to combine GE’s expertise in gasification and cleaner power generation technologies with Shenhua’s expertise in building and operating gasification and power generation facilities. The joint venture will seek to advance cleaner coal technology solutions for industrial chemicals, fuels, and power generation. GE estimates approximately $150 million in U.S. exports over the first five years of the joint venture, mainly related to technology licensing, engineering, and R&D support. Additionally, the joint venture has potential to generate $1.5 to 2.5 billion in U.S. exports over the long term.
General Electric-Huadian Joint Collaboration Agreement on Decentralized Energy Combined Heat and Power Projects: General Electric is signing a Joint Collaboration Agreement with China Huadian Engineering Co., Ltd for cooperation on Decentralized Energy Combined Heat and Power (DECHP). This agreement will be a binding agreement to develop, market, and sell DECHP generators, an efficient alternative to coal-fired power plants. GE estimates that at least 50 DECHP gas turbine generator sets will be sold in China in the next ten years, resulting in $500 million in sales and $350 million in U.S. export content, supporting over 200 jobs in the United States.
Cummins Hybrid Bus Development and Commercialization: Cummins, Inc (Cummins; Columbus, Indiana) and Zhengzhou Yutong Bus Compay, (Yutong; Zhengzhou, China) have negotiated an agreement to jointly develop and commercialize hybrid power systems for the Chinese bus market. Cummins is presently a supplier to Yutong, and hopes to increase its penetration of the Chinese market by jointly developing and producing a hybrid bus primarily for the Chinese market. Cummins estimates a potential for over $500 million in annual sales. This will be the first partnership of its kind involving Cummins hybrid power systems and a major vehicle manufacturer. Cummins claims that up to 500 jobs could be created in the U.S. related to production, sales, and service of hybrid systems for commercial vehicles for the U.S. and Chinese markets. Cummins also expects an annual savings of 21,000 metric tons of CO2 emissions.
General Electric-AVIC Avionics Joint Venture Agreement: GE and AVIC will sign an agreement to form a new joint venture company to market globally advanced avionics systems for future commercial aircraft. The GE-AVIC joint venture is expected to support 300 high-tech jobs in Michigan and Florida.
UPC Management Wind Power Agreements: UPC Management, LLC (UPC) is a Miami, Florida based wind power developer, having interests in 24 sites in 12 Chinese provinces. The company has negotiated a Strategic Framework Agreement (SFA) with the China Guo Dian Corporation (CGD), which develops, builds, operates, and distributes electricity and heat. Under the SFA, CGD and UPC will form ventures leading to the establishment of wind power generation joint ventures. The total value of the SFA investments could reach $1.5 billion, of which UPC will invest up to $735 million.
Honeywell—Haier Group Memorandum of Understanding for Global Strategic Cooperation: Honeywell International Inc., headquartered in Morris Township, New Jersey (Honeywell), entered into an agreement with Haier Group (Haier) to collaborate on the development and promotion of low-emission, high energy-efficiency products and solutions. Honeywell estimates the total value of the five-year MOU at $53 million per annum, or $265 million and U.S. export content at $42 million per annum, or $210 million.
LP Amina MOU with Beijing Energy: LP Amina, environmental engineering company headquartered in Novi, Michigan, signed a Memorandum of Understanding (MOU) with Beijing Energy to sell de-nitrification engineering, equipment and other potential environmental and boiler efficiency improvement solutions. This MOU creates a framework for potential long-term cooperation to reduce emissions and improve efficiency across Beijing Energy's power plant facilities in China.
LanzaTech--Bao Steel Joint Venture to Build an Ethanol Plant: LanzaTech Inc., a wholly-owned subsidiary of LanzaTech New Zealand, headquartered in Roselle, Illinois (LanzaTech), and Bao Steel Group Corporation (Bao Steel), will conclude a Contractual Joint Venture Contract for the construction and operation of a demonstration ethanol production facility in China. The facility will utilize waste flue gas from Bao Steel’s Shanghai steel mill as feed stock and LanzaTech proprietary gas fermentation technology to produce ethanol.
LanzaTech-- Wuhan Kaidi General Research Institute of Engineering and Technology Company Limited Ethanol Production Letter of Intent: LanzaTech Inc., a wholly-owned subsidiary of LanzaTech New Zealand, headquartered in Roselle, Illinois (LanzaTech), and Wuhan Kaidi General Research Institute of Engineering and Technology Company Limited (Wuhan), will conclude a Letter of Intent for the construction and operation of a demonstration ethanol production facility in China. The facility will utilize Wuhan supplied waste biomass synthesis gas as feed stock and LanzaTech proprietary gas fermentation technology to produce ethanol.
MVP RV -- Winston Battery Limited Recreational Vehicle MOU: MVP RV (MVP; Riverside, California) is a privately-held U.S. company that produces self-powered and trailer Recreational Vehicles. The company has an existing distributor relationship with privately-held Winston Battery Limited (Winston; Shenzhen, China). Winston, through the proposed MOU, plans a major capital injection into MVP RV in the amount of $310 million to promote motor home exports to China. Additionally, Winston Battery Limited will provide capital for the development of all-electric recreation vehicles and charging systems. The goal is to export over 10,000 Class A (self-powered, bus-sized) motor homes and 20,000 Class C (self-powered, van-sized) motor homes to China in the next 3-4 years. MPV estimates the value of these exports to be over $5 billion. The MOU specifies the intention to export vehicles to China through Winston and the eventual incorporation of an all-electric powertrain to future vehicles.
· Caterpillar Inc. – Caterpillar China Investment Co. Ltd. Business Agreement: Caterpillar (Peoria, Illinois) and Caterpillar China Investment Co. Ltd. – a wholly owned subsidiary of Caterpillar – will sign an agreement under which $1.4 billion in U.S.-manufactured mining and construction equipment, and diesel and gas turbine engines will be shipped to China. The intra-company sale will support approximately 7,567 jobs in the United States.
LP Amina MOU with Yixing Union Congregation Co. Ltd: LP Amina, a multinational environmental engineering company headquartered in Novi, Michigan, signed a Memorandum of Understanding (MOU) with Yi Xing Union Congregation Co., Ltd, a Chinese energy and chemical company. The MOU will formalize plans in advance of an expected contract signing, which will establish a collaborative pilot project to demonstrate LP Amina’s patent-pending Coal to Chemicals System. This innovative technology will couple chemical production with power generation and enable the use of thermal energy generated from the chemical production for additional efficiency power generation. This process would also reduce emissions by nearly 90% compared to the conventional production process in use today. Once commercialized, LP Amina estimates that this technology could be deployed in the United States creating up to 500 jobs.
· Optimax Systems, Inc -- Shanghai Micro-Electronics Equipment Co., Ltd. Precision Optics Sale: Optimax Systems, Inc. (Ontario, New York), a manufacturer of high-precision optical components, has signed a new agreement for supplying precision optics to Shanghai-based Shanghai Micro-Electronics Equipment Co., Ltd. (SMEE) for incorporation into SMEE's advanced lithography equipment. SMEE is rapidly expanding its presence in the semi-conductor, MEMS and flat panel display manufacturing industries in China and throughout Asia. By combining their innovative technologies, SMEE and Optimax can further expand potential for next-generation lithography in the Chinese market. Optimax plans a $4 million expansion of its ultra-precision manufacturing capacity to support this new agreement with SMEE, which will include adding 50 new manufacturing jobs for high-precision optical technicians at its Ontario, New York facilities. This follows on a $2 million facility expansion already completed to support business done with SMEE to date.
· Erickson Air-Crane Heavy Lift Helicopter Sale: Erickson Air-Crane (Portland, Oregon) announces the pending sale of five S-64 (commercial) helicopter aircraft to China Taicang Aircrane Company Ltd. The transaction has nearly 100% U.S. export content. While the detailed commercial terms of this agreement are presently under negotiation, the companies have recently executed an Acceptance of Proposal that provides for the five aircraft to be delivered over a two year period beginning with the delivery of the first aircraft by February 28, 2011.
Celanese -- Wison Group Memorandum of Understanding for Ethanol Production: Celanese Far East Co., a subsidiary of Celanese Corporation headquartered in Dallas, Texas (Celanese), and Wison Group Holding Limited (Wison), will conclude a Memorandum of Understanding for the construction and operation of an industrial ethanol production facility in China. Wison plans to invest in a coal gasification unit based on clean coal technology to produce synthesis gas per Celanese specs, and Celanese plans to invest approximately $650 million in an Ethanol Complex using the output from Wison as feed stock, and Celanese proprietary technology, to produce ethanol for industrial use, and potentially for fuel ethanol. This transaction is valued at approximately $815 million, with $50-80 million in U.S. export content. Celanese estimates project implementation will support an estimated 200-250 U.S. jobs.
Westinghouse Electric Company -- China Baotou Nuclear Fuel (CBNF) Fuel Fabrication Agreement: Westinghouse Electric Company concluded a contract to design, manufacture and install fuel fabrication equipment for use by CBNF to manufacture fuel for the Westinghouse AP-1000 nuclear power plants currently under construction at sites across China.
Westinghouse Electric Company-- China State Nuclear Power Technology Corporation (SNPTC) Nuclear Cooperation Agreement: Westinghouse and SNPTC announced a two-year extension of a nuclear cooperation agreement that focuses on continued deployment of the Westinghouse AP-1000 nuclear power plant in China as well as service and maintenance, technology development and strategic investment. The agreement extends the commitment of both Westinghouse and SNPTC to explore future cooperation in areas of strategic interest including large passive plant development; follow-on AP-1000 cooperation; services and research and development.
Boeing, Honeywell, and Pratt & Whitney -Air China Aviation Biofuels MOU: During President Hu’s visit, the Boeing Company and Air China announced an agreement to initiate planning of an inaugural international flight using sustainable aviation biofuels. Furthermore, Boeing, Honeywell, and Pratt & Whitney announced an agreement on the details of the technical support they will offer to Air China in the planning, execution, and analysis of the inaugural biofuel flight. This demonstrates the strong link between the U.S. and China Sustainable Aviation Biofuels industries and aviation’s significant contribution to trade between the U.S. and China.
Boeing, Honeywell, and Pratt & Whitney will also announce an agreement on the details of the technical support they will offer to Air China in the planning, execution, and analysis of the airline’s inaugural biofuel flight. This demonstrates the strong link between the U.S. and China Sustainable Aviation Biofuels industries and aviation’s significant contribution to trade between the U.S. and China. This agreement will highlight the future of the aviation industry, which contributes an estimated $4 trillion to the global economy annually.
AES-- Chongqing Energy Investment Group Memorandum of Comprehensive Cooperation: AES China, a subsidiary of AES Corporation headquartered in Arlington, Virginia, entered into an agreement with Chongqing Energy Investment Group Ltd (Chongqing) to jointly develop, construct and operate a series of renewable energy projects, including hydroelectric, wind, ventilation air methane, clean coal and low carbon technology projects. This transaction is valued at approximately $300 million.
Alcoa and the China Power Investment Corporation MOU: Alcoa (New York, New York) and the China Power Investment Corporation (CPI) announced a Memorandum of Understanding to collaborate on a broad range of aluminum and energy projects representing an estimated $7.5 billion in investment. The two companies will intensify their collaboration in China on developing clean energy projects and outside China on a broad range of initiatives. The total employment impact to the U.S. economy of this transaction is not known at this time; however, Alcoa estimates that this undertaking will improve the global competitiveness of the company and support jobs in the United States.
Ener1 – Wanxiang Battery Joint Venture: Ener1, Inc. (New York, New York), a manufacturer of Lithium Ion battery systems for electric vehicles and Wanxiang Group, a leading Chinese auto components manufacturer, seek to enter into an MOU to jointly produce advanced battery systems for electric cars and power utilities in Asian markets. This MOU builds upon a binding May 2010 letter of intent and seeks to establish a China-based joint venture to produce lithium-ion cells, modules and battery packs for use in electric vehicles and power grid energy storage applications for the Chinese market and also export to the markets of Taiwan, Hong Kong and Japan. Ener1 executives credit U.S. DOE match-making and financial assistance with the company’s success in gaining access to the Chinese market. The company expects that participation in this joint venture would be part of a larger strategy to develop manufacturing and design capacity in the United States, supporting up to 1,500 jobs in Indiana.
· Emberclear and CERI Licensing Agreement: EmberClear (Calgary, Alberta Canada), with offices in Houston, TX, signed an exclusive license with Clean Energy Research Institute (CERI), a clean energy technology subsidiary of Huaneng Power Group of China, to become a global licensing and development partner. EmberClear will provide engineering and project development services for economic and efficient clean fossil energy solutions and scientific consulting services in international projects. EmberClear and CERI highlighted the first project of this partnership, a 270 Megawatt IGCC power plant in Pennsylvania that recently received all relevant permits.
Peabody Energy MOU with China Huaneng Group: Peabody Energy, headquartered in St. Louis, Missouri, and Calera Corporation, headquartered in Los Gatos, California, signed a Memorandum of Understanding with China Huaneng Group to develop a supercritical clean coal electricity generation project with carbon capture in the Xilinguole League Prefecture of China’s Inner Mongolia Autonomous Region. The project would include a large surface coal mine using best practices for safety and environmental excellence, produce clean power, and convert flue gas carbon dioxide into cement-like building materials.
Peabody Energy and Yankuang Xinjiang Nenghua Company Limited MOU: Peabody Energy, headquartered in St. Louis, Missouri and Yankuang Xinjiang Nenghua Company Limited, a wholly owned subsidiary of Yankuang Group Company Limited, signed a Memorandum of Understanding to jointly develop an integrated clean energy center in China’s Xinjiang Autonomous Region. The center will include construction of an ultra supercritical clean coal electricity generation project and coal-to-natural gas conversion facility fueled by a new open-cut coal mine.
AEP – China Huaneng: American Electric Power Company, headquartered in Columbus, Ohio, signed cooperation agreements with three Chinese entities, China Huaneng, State Grid Corporation of China and China National Offshore Oil Corporation. The cooperation agreement with China Huaneng, China’s largest power company, relates to evaluating a Carbon Capture and Storage (CCS) technology developed by China Huaneng and improving the efficiency of coal-fired power plants. The overall goal is to advance commercialization of CCS in both the U.S. and China.
AEP – State Grid Corporation of China: American Electric Power Company, headquartered in Columbus, Ohio, signed cooperation agreements with three Chinese entities, China Huaneng, State Grid Corporation of China and China National Offshore Oil Corporation. The cooperation agreement with China National Offshore Oil Corporation (CNOOC), the largest offshore oil exploration and production company in China, contains CNOOC investment in the AEP's Mountaineer Plant commercial-scale carbon capture and underground storage project, and plans to explore opportunities for the utilization of captured carbon dioxide for enhanced oil and natural gas recovery in the United States. This is expected to benefit the development of CCS technology in the United States and China.
· Duke Energy Corporation--ENN Group Co. Ltd. Eco-City MOU: ENN Group Co. Ltd. and Duke Energy Corporation have concluded a memorandum of understanding (MOU) outlining the terms and scope of cooperation in the development and utilization of clean energy solutions for the Eco-City, a demonstration project intended to showcase clean coal, electric vehicles and energy efficient building technologies in Langfang, China.
EPIC Clean Technologies--Tengzhou Huawen Paper Co. Paper Joint Venture Agreement: EPIC Clean Technologies Corporation, headquartered in Houston, Texas, and Tengzhou Huawen Paper Co. (THP), will conclude a Contractual Joint Venture Agreement for the redevelopment of the THP paper mill. The newly formed Joint Venture will assume ownership of the existing power plant and install a new clean coal gasification power plant to increase power and steam production, lower CO2 emissions by 35 percent, eliminate most other pollutants, and reduce coal consumption. The project includes a license agreement for use of EPIC gasification technology.
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China is a key market for U.S. exports. Those exports are generating jobs in every corner of the United States and across every major sector. These involve some of our country’s largest companies, but also an increasing number of small and medium-sized enterprises.
In preparation for this visit, several large purchases have been approved including for 200 Boeing airplanes valued at $19 billion. In addition, the Chinese government has indicated that its companies signed 70 contracts for $25 billion in U.S. exports from 12 states. These included sectors ranging from auto parts to agriculture, machinery to chemicals. In addition, 11 investment contracts were signed worth $3.24 billion. Additional, transactions were announced or showcased, exceeding $13.1 billion in total value with approximately $987.8 million in U.S. export content. These deals worth over $45 billion in increased exports will help support an estimated 235,000 jobs in the United States. These cross-border collaborations, both public and private, underpin the expanding U.S.-China commercial partnership, contributing to economic growth and development in both countries. A number of these transactions highlight the increased collaboration in such areas as clean energy and green technologies. Examples of some of the deals associated with this visit include:
· Boeing Airplane Sales: China's agreement to approve airline contracts for 200 orders covers aircraft to be delivered over a three-year period, 2011-2013. The approval, the final step in a $19B package of aircraft, will help Boeing maintain and expand its market share in the world's fastest growing commercial aircraft market. Including 737s and 777s, the agreement help supports more than 100,000 American jobs, including those in Boeing and its suppliers throughout the U.S.
· General Electric --China Ministry of Railways (MOR) Letter of Intent on High Speed Rail Technology Transfer and Purchasing Rolling Stock and Signaling Equipment: The Chinese Ministry of Rail (MOR) and General Electric (GE) have signed a letter of intent expanding upon an existing strategic partnership to bring Chinese high-speed rail technology to the United States. GE and China South Locomotive & Rolling Stock Corporation Limited (CSR) plan to form a joint venture in the United States to manufacture high- and medium-speed electric multiple unit trains. GE estimates that new business generated by the HSR JV could support up to 3,500 jobs in the United States. GE also will agree to manufacture locomotives for China and will provide components for 500 or more locomotives. The LOI will support efforts to capture new business opportunities valued at up to $1.4 billion with an estimated $360 million in U.S. export content, supporting up to 200 GE Transportation jobs.
Navistar Inc.-- JAC Truck and Engine Joint Ventures: Navistar has announced central Chinese government approval for a $400 million, 50-50 joint venture with the state-owned Anhui Jianghuai Automobile Company (JAC). Navistar will export services and parts to be used in the manufacture of diesel engines and commercial trucks. The JV will develop, manufacture, market, and sell heavy duty trucks and light to medium/heavy duty engines, primarily in China. The joint venture will be based in Hefei City, Anhui Province. Once production begins, Navistar anticipates that many components will be sourced from the United States. Direct U.S. exports during the first year of the joint venture are estimated at $15 million, but are forecast to grow significantly over the next five years as production increases. Navistar estimates the net employment benefit of the joint ventures to the United States economy at 200 jobs in the United States, mainly in the field of engineering and other services.
General Electric-Shenhua Gasification Joint Venture: GE and China Shenhua Energy Company Limited (Beijing, China) have formed a joint venture company in order to combine GE’s expertise in gasification and cleaner power generation technologies with Shenhua’s expertise in building and operating gasification and power generation facilities. The joint venture will seek to advance cleaner coal technology solutions for industrial chemicals, fuels, and power generation. GE estimates approximately $150 million in U.S. exports over the first five years of the joint venture, mainly related to technology licensing, engineering, and R&D support. Additionally, the joint venture has potential to generate $1.5 to 2.5 billion in U.S. exports over the long term.
General Electric-Huadian Joint Collaboration Agreement on Decentralized Energy Combined Heat and Power Projects: General Electric is signing a Joint Collaboration Agreement with China Huadian Engineering Co., Ltd for cooperation on Decentralized Energy Combined Heat and Power (DECHP). This agreement will be a binding agreement to develop, market, and sell DECHP generators, an efficient alternative to coal-fired power plants. GE estimates that at least 50 DECHP gas turbine generator sets will be sold in China in the next ten years, resulting in $500 million in sales and $350 million in U.S. export content, supporting over 200 jobs in the United States.
Cummins Hybrid Bus Development and Commercialization: Cummins, Inc (Cummins; Columbus, Indiana) and Zhengzhou Yutong Bus Compay, (Yutong; Zhengzhou, China) have negotiated an agreement to jointly develop and commercialize hybrid power systems for the Chinese bus market. Cummins is presently a supplier to Yutong, and hopes to increase its penetration of the Chinese market by jointly developing and producing a hybrid bus primarily for the Chinese market. Cummins estimates a potential for over $500 million in annual sales. This will be the first partnership of its kind involving Cummins hybrid power systems and a major vehicle manufacturer. Cummins claims that up to 500 jobs could be created in the U.S. related to production, sales, and service of hybrid systems for commercial vehicles for the U.S. and Chinese markets. Cummins also expects an annual savings of 21,000 metric tons of CO2 emissions.
General Electric-AVIC Avionics Joint Venture Agreement: GE and AVIC will sign an agreement to form a new joint venture company to market globally advanced avionics systems for future commercial aircraft. The GE-AVIC joint venture is expected to support 300 high-tech jobs in Michigan and Florida.
UPC Management Wind Power Agreements: UPC Management, LLC (UPC) is a Miami, Florida based wind power developer, having interests in 24 sites in 12 Chinese provinces. The company has negotiated a Strategic Framework Agreement (SFA) with the China Guo Dian Corporation (CGD), which develops, builds, operates, and distributes electricity and heat. Under the SFA, CGD and UPC will form ventures leading to the establishment of wind power generation joint ventures. The total value of the SFA investments could reach $1.5 billion, of which UPC will invest up to $735 million.
Honeywell—Haier Group Memorandum of Understanding for Global Strategic Cooperation: Honeywell International Inc., headquartered in Morris Township, New Jersey (Honeywell), entered into an agreement with Haier Group (Haier) to collaborate on the development and promotion of low-emission, high energy-efficiency products and solutions. Honeywell estimates the total value of the five-year MOU at $53 million per annum, or $265 million and U.S. export content at $42 million per annum, or $210 million.
LP Amina MOU with Beijing Energy: LP Amina, environmental engineering company headquartered in Novi, Michigan, signed a Memorandum of Understanding (MOU) with Beijing Energy to sell de-nitrification engineering, equipment and other potential environmental and boiler efficiency improvement solutions. This MOU creates a framework for potential long-term cooperation to reduce emissions and improve efficiency across Beijing Energy's power plant facilities in China.
LanzaTech--Bao Steel Joint Venture to Build an Ethanol Plant: LanzaTech Inc., a wholly-owned subsidiary of LanzaTech New Zealand, headquartered in Roselle, Illinois (LanzaTech), and Bao Steel Group Corporation (Bao Steel), will conclude a Contractual Joint Venture Contract for the construction and operation of a demonstration ethanol production facility in China. The facility will utilize waste flue gas from Bao Steel’s Shanghai steel mill as feed stock and LanzaTech proprietary gas fermentation technology to produce ethanol.
LanzaTech-- Wuhan Kaidi General Research Institute of Engineering and Technology Company Limited Ethanol Production Letter of Intent: LanzaTech Inc., a wholly-owned subsidiary of LanzaTech New Zealand, headquartered in Roselle, Illinois (LanzaTech), and Wuhan Kaidi General Research Institute of Engineering and Technology Company Limited (Wuhan), will conclude a Letter of Intent for the construction and operation of a demonstration ethanol production facility in China. The facility will utilize Wuhan supplied waste biomass synthesis gas as feed stock and LanzaTech proprietary gas fermentation technology to produce ethanol.
MVP RV -- Winston Battery Limited Recreational Vehicle MOU: MVP RV (MVP; Riverside, California) is a privately-held U.S. company that produces self-powered and trailer Recreational Vehicles. The company has an existing distributor relationship with privately-held Winston Battery Limited (Winston; Shenzhen, China). Winston, through the proposed MOU, plans a major capital injection into MVP RV in the amount of $310 million to promote motor home exports to China. Additionally, Winston Battery Limited will provide capital for the development of all-electric recreation vehicles and charging systems. The goal is to export over 10,000 Class A (self-powered, bus-sized) motor homes and 20,000 Class C (self-powered, van-sized) motor homes to China in the next 3-4 years. MPV estimates the value of these exports to be over $5 billion. The MOU specifies the intention to export vehicles to China through Winston and the eventual incorporation of an all-electric powertrain to future vehicles.
· Caterpillar Inc. – Caterpillar China Investment Co. Ltd. Business Agreement: Caterpillar (Peoria, Illinois) and Caterpillar China Investment Co. Ltd. – a wholly owned subsidiary of Caterpillar – will sign an agreement under which $1.4 billion in U.S.-manufactured mining and construction equipment, and diesel and gas turbine engines will be shipped to China. The intra-company sale will support approximately 7,567 jobs in the United States.
LP Amina MOU with Yixing Union Congregation Co. Ltd: LP Amina, a multinational environmental engineering company headquartered in Novi, Michigan, signed a Memorandum of Understanding (MOU) with Yi Xing Union Congregation Co., Ltd, a Chinese energy and chemical company. The MOU will formalize plans in advance of an expected contract signing, which will establish a collaborative pilot project to demonstrate LP Amina’s patent-pending Coal to Chemicals System. This innovative technology will couple chemical production with power generation and enable the use of thermal energy generated from the chemical production for additional efficiency power generation. This process would also reduce emissions by nearly 90% compared to the conventional production process in use today. Once commercialized, LP Amina estimates that this technology could be deployed in the United States creating up to 500 jobs.
· Optimax Systems, Inc -- Shanghai Micro-Electronics Equipment Co., Ltd. Precision Optics Sale: Optimax Systems, Inc. (Ontario, New York), a manufacturer of high-precision optical components, has signed a new agreement for supplying precision optics to Shanghai-based Shanghai Micro-Electronics Equipment Co., Ltd. (SMEE) for incorporation into SMEE's advanced lithography equipment. SMEE is rapidly expanding its presence in the semi-conductor, MEMS and flat panel display manufacturing industries in China and throughout Asia. By combining their innovative technologies, SMEE and Optimax can further expand potential for next-generation lithography in the Chinese market. Optimax plans a $4 million expansion of its ultra-precision manufacturing capacity to support this new agreement with SMEE, which will include adding 50 new manufacturing jobs for high-precision optical technicians at its Ontario, New York facilities. This follows on a $2 million facility expansion already completed to support business done with SMEE to date.
· Erickson Air-Crane Heavy Lift Helicopter Sale: Erickson Air-Crane (Portland, Oregon) announces the pending sale of five S-64 (commercial) helicopter aircraft to China Taicang Aircrane Company Ltd. The transaction has nearly 100% U.S. export content. While the detailed commercial terms of this agreement are presently under negotiation, the companies have recently executed an Acceptance of Proposal that provides for the five aircraft to be delivered over a two year period beginning with the delivery of the first aircraft by February 28, 2011.
Celanese -- Wison Group Memorandum of Understanding for Ethanol Production: Celanese Far East Co., a subsidiary of Celanese Corporation headquartered in Dallas, Texas (Celanese), and Wison Group Holding Limited (Wison), will conclude a Memorandum of Understanding for the construction and operation of an industrial ethanol production facility in China. Wison plans to invest in a coal gasification unit based on clean coal technology to produce synthesis gas per Celanese specs, and Celanese plans to invest approximately $650 million in an Ethanol Complex using the output from Wison as feed stock, and Celanese proprietary technology, to produce ethanol for industrial use, and potentially for fuel ethanol. This transaction is valued at approximately $815 million, with $50-80 million in U.S. export content. Celanese estimates project implementation will support an estimated 200-250 U.S. jobs.
Westinghouse Electric Company -- China Baotou Nuclear Fuel (CBNF) Fuel Fabrication Agreement: Westinghouse Electric Company concluded a contract to design, manufacture and install fuel fabrication equipment for use by CBNF to manufacture fuel for the Westinghouse AP-1000 nuclear power plants currently under construction at sites across China.
Westinghouse Electric Company-- China State Nuclear Power Technology Corporation (SNPTC) Nuclear Cooperation Agreement: Westinghouse and SNPTC announced a two-year extension of a nuclear cooperation agreement that focuses on continued deployment of the Westinghouse AP-1000 nuclear power plant in China as well as service and maintenance, technology development and strategic investment. The agreement extends the commitment of both Westinghouse and SNPTC to explore future cooperation in areas of strategic interest including large passive plant development; follow-on AP-1000 cooperation; services and research and development.
Boeing, Honeywell, and Pratt & Whitney -Air China Aviation Biofuels MOU: During President Hu’s visit, the Boeing Company and Air China announced an agreement to initiate planning of an inaugural international flight using sustainable aviation biofuels. Furthermore, Boeing, Honeywell, and Pratt & Whitney announced an agreement on the details of the technical support they will offer to Air China in the planning, execution, and analysis of the inaugural biofuel flight. This demonstrates the strong link between the U.S. and China Sustainable Aviation Biofuels industries and aviation’s significant contribution to trade between the U.S. and China.
Boeing, Honeywell, and Pratt & Whitney will also announce an agreement on the details of the technical support they will offer to Air China in the planning, execution, and analysis of the airline’s inaugural biofuel flight. This demonstrates the strong link between the U.S. and China Sustainable Aviation Biofuels industries and aviation’s significant contribution to trade between the U.S. and China. This agreement will highlight the future of the aviation industry, which contributes an estimated $4 trillion to the global economy annually.
AES-- Chongqing Energy Investment Group Memorandum of Comprehensive Cooperation: AES China, a subsidiary of AES Corporation headquartered in Arlington, Virginia, entered into an agreement with Chongqing Energy Investment Group Ltd (Chongqing) to jointly develop, construct and operate a series of renewable energy projects, including hydroelectric, wind, ventilation air methane, clean coal and low carbon technology projects. This transaction is valued at approximately $300 million.
Alcoa and the China Power Investment Corporation MOU: Alcoa (New York, New York) and the China Power Investment Corporation (CPI) announced a Memorandum of Understanding to collaborate on a broad range of aluminum and energy projects representing an estimated $7.5 billion in investment. The two companies will intensify their collaboration in China on developing clean energy projects and outside China on a broad range of initiatives. The total employment impact to the U.S. economy of this transaction is not known at this time; however, Alcoa estimates that this undertaking will improve the global competitiveness of the company and support jobs in the United States.
Ener1 – Wanxiang Battery Joint Venture: Ener1, Inc. (New York, New York), a manufacturer of Lithium Ion battery systems for electric vehicles and Wanxiang Group, a leading Chinese auto components manufacturer, seek to enter into an MOU to jointly produce advanced battery systems for electric cars and power utilities in Asian markets. This MOU builds upon a binding May 2010 letter of intent and seeks to establish a China-based joint venture to produce lithium-ion cells, modules and battery packs for use in electric vehicles and power grid energy storage applications for the Chinese market and also export to the markets of Taiwan, Hong Kong and Japan. Ener1 executives credit U.S. DOE match-making and financial assistance with the company’s success in gaining access to the Chinese market. The company expects that participation in this joint venture would be part of a larger strategy to develop manufacturing and design capacity in the United States, supporting up to 1,500 jobs in Indiana.
· Emberclear and CERI Licensing Agreement: EmberClear (Calgary, Alberta Canada), with offices in Houston, TX, signed an exclusive license with Clean Energy Research Institute (CERI), a clean energy technology subsidiary of Huaneng Power Group of China, to become a global licensing and development partner. EmberClear will provide engineering and project development services for economic and efficient clean fossil energy solutions and scientific consulting services in international projects. EmberClear and CERI highlighted the first project of this partnership, a 270 Megawatt IGCC power plant in Pennsylvania that recently received all relevant permits.
Peabody Energy MOU with China Huaneng Group: Peabody Energy, headquartered in St. Louis, Missouri, and Calera Corporation, headquartered in Los Gatos, California, signed a Memorandum of Understanding with China Huaneng Group to develop a supercritical clean coal electricity generation project with carbon capture in the Xilinguole League Prefecture of China’s Inner Mongolia Autonomous Region. The project would include a large surface coal mine using best practices for safety and environmental excellence, produce clean power, and convert flue gas carbon dioxide into cement-like building materials.
Peabody Energy and Yankuang Xinjiang Nenghua Company Limited MOU: Peabody Energy, headquartered in St. Louis, Missouri and Yankuang Xinjiang Nenghua Company Limited, a wholly owned subsidiary of Yankuang Group Company Limited, signed a Memorandum of Understanding to jointly develop an integrated clean energy center in China’s Xinjiang Autonomous Region. The center will include construction of an ultra supercritical clean coal electricity generation project and coal-to-natural gas conversion facility fueled by a new open-cut coal mine.
AEP – China Huaneng: American Electric Power Company, headquartered in Columbus, Ohio, signed cooperation agreements with three Chinese entities, China Huaneng, State Grid Corporation of China and China National Offshore Oil Corporation. The cooperation agreement with China Huaneng, China’s largest power company, relates to evaluating a Carbon Capture and Storage (CCS) technology developed by China Huaneng and improving the efficiency of coal-fired power plants. The overall goal is to advance commercialization of CCS in both the U.S. and China.
AEP – State Grid Corporation of China: American Electric Power Company, headquartered in Columbus, Ohio, signed cooperation agreements with three Chinese entities, China Huaneng, State Grid Corporation of China and China National Offshore Oil Corporation. The cooperation agreement with China National Offshore Oil Corporation (CNOOC), the largest offshore oil exploration and production company in China, contains CNOOC investment in the AEP's Mountaineer Plant commercial-scale carbon capture and underground storage project, and plans to explore opportunities for the utilization of captured carbon dioxide for enhanced oil and natural gas recovery in the United States. This is expected to benefit the development of CCS technology in the United States and China.
· Duke Energy Corporation--ENN Group Co. Ltd. Eco-City MOU: ENN Group Co. Ltd. and Duke Energy Corporation have concluded a memorandum of understanding (MOU) outlining the terms and scope of cooperation in the development and utilization of clean energy solutions for the Eco-City, a demonstration project intended to showcase clean coal, electric vehicles and energy efficient building technologies in Langfang, China.
EPIC Clean Technologies--Tengzhou Huawen Paper Co. Paper Joint Venture Agreement: EPIC Clean Technologies Corporation, headquartered in Houston, Texas, and Tengzhou Huawen Paper Co. (THP), will conclude a Contractual Joint Venture Agreement for the redevelopment of the THP paper mill. The newly formed Joint Venture will assume ownership of the existing power plant and install a new clean coal gasification power plant to increase power and steam production, lower CO2 emissions by 35 percent, eliminate most other pollutants, and reduce coal consumption. The project includes a license agreement for use of EPIC gasification technology.
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Monday, January 12, 2009
Governor Blagojevich signs Clean Coal Legislation Paving Way for Taylorville Gasification Plant
From the Office of Governor Rod Blagojevich
CHICAGO – Taking another bold step toward establishing Illinois as a national leader in fighting climate change and creating a cleaner and more energy independent future, Governor Rod R. Blagojevich today signed Senate Bill 1987, which creates a Clean Coal Portfolio standard that will encourage construction of facilities that emit far fewer pollutants than are older, traditional coal-fired power plants.
Senate Bill 1987, which was sponsored by State Senator Donne E. Trotter (D–Chicago), will enable Tenaska’s proposed Taylorville Energy Center to become the nation’s first commercial-scale, Integrated Gasification Combined Cycle (IGCC) power plant that will convert coal into a gas that will be used to generate electricity and allow for the capture and underground storage of carbon dioxide emissions.
“The Taylorville Energy Center’s use of cutting edge clean coal gasification technology is a great example of how we can grow our economy and create good paying jobs while protecting our environment,” said Governor Blagojevich. “Illinois has among world’s largest coal reserves and the geology needed to safely store greenhouse gases underground that will let use this domestic energy source in an environmentally safe manner while reducing our state’s reliance on imported energy sources.”
It is intended to create a stable market for power produced by coal gasification power plants by requiring Illinois utilities to buy up to five percent of their power from clean-coal facilities by 2015. It also creates a goal that each public utility to obtain 25 percent of its power from clean coal plants by 2025.
It dramatically expands the Renewable Portfolio Standard (RPS) that currently requires Illinois utilities to purchase 25 percent of their electricity from renewable sources, such as wind power, by 2025 by imposing the same requirement on Alternative Retail Electric Suppliers, companies that sell power to commercial and industrial electricity customers. Expanding the RPS will double the amount of renewable energy supplied to Illinois customers, spur billions in new investments in renewable energy and create thousands of new construction and permanent green tech jobs across Illinois.
It also requires the two main utilities that serve Illinois customers – ComEd and Ameren – to invest in efforts that help customers reduce their energy use during time of peak energy usage. Such “demand response” that cut peak energy use not only save consumers money but can reduce emissions by avoiding the need to generate additional power.
Clean coal facilities, such as the Taylorville Energy Center, can responsibly use Illinois coal to produce power and reduce greenhouse gas emissions by capturing carbon dioxide that can be permanently stored underground in mature oil fields or deep saline aquifers. In addition to vast coal reserves, Illinois’ geology is well-suited for carbon sequestration, making Illinois an ideal place to build coal gasification plants.
The $3 billion gasification plant would create 1,500 construction jobs, 120 permanent jobs at the plant and 160 new mining jobs to supply the 1.8 million tons of Illinois coal needed annually to power more than 600,000 households.
The plant will use coal gasification technology that emits dramatically lower emissions than conventional coal plants. The air pollution permit issued by the Illinois EPA reflects Illinois’ commitment to developing environmentally responsible solutions to meet rising energy demand.
“The air we all breathe will be cleaner because gasification plants remove pollutants and impurities prior to combustion, resulting in significantly lower mercury, sulfur dioxide, nitrogen oxide and particular emissions than conventional coal plants,” said Illinois EPA Director Doug Scott.
The Taylorville Energy Center has received a final air permit from the Illinois EPA, the first issued in the country for a commercially-sized IGCC power generating plant, and has authorized independent power producer Christian County Generation (CCG), or Tenaska, as managing member of CCG, to build the gasification plant.
The Governor today also signed Senate Bill 1511, sponsored by State Senator Kwame Raoul (D – Chicago) and State Representative Gary Hannig (D – Gillespie), which approves $35 million in State-backed bonds to fund a study on the development of clean coal and efficient energy resource development throughout the state. To protect consumers and ensure that the costs of building and operating the Taylorville plant will be reasonable, the bill requires Tenaska to complete a facility cost report and submit it for approval by the Illinois Commerce Commission and the Illinois General Assembly before construction can begin.
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