Market Overview

Taylorville Energy Center Begins Search for Illinois Coal Suppliers

Share:
TAYLORVILLE, Ill.--(BUSINESS WIRE)--

Tenaska, managing partner for the Taylorville Energy Center (TEC), has released a Request for Proposals (RFP) to secure coal from one or more suppliers for use at the coal gasification plant.

TEC, a $3.5 billion project to convert Illinois coal into clean burning substitute natural gas (SNG) and electricity, is expected to consume approximately 1.5-2.4 million tons per year of local, bituminous coal. Mining, processing and delivering the coal needed to power the project will create hundreds of permanent jobs in mining and related industries in Illinois. SNG produced by the gasification process will be used to power TEC's combined cycle power block, generating 716 megawatts (602 MW net) of baseload power for Illinois. Electricity generated by the plant will power 600,000 homes.

“This project is good for the community and critical to revitalizing Illinois' struggling coal industry,” said Phil Gonet, president of the Illinois Coal Association. “We see, and a recent University of Illinois-Illinois Chamber of Commerce Study found, that clean coal gasification technology is a key to the future of economic development in our state.”

Most Illinois plants currently import coal from other states because the high sulfur content of Illinois coal makes it environmentally and economically difficult to use cleanly with conventional technology. The gasification process at TEC solves this pollution problem by reducing by more than 90 percent the sulfur, mercury and particulate matter from the fuel prior to combustion. The facility also achieves lower nitrogen oxide emissions than any existing coal boiler.

By displacing power from less efficient plants, TEC will cut the state's net SO2 and NOx pollution by 11,600 tons per year. According to a recent report by the Environmental Protection Agency, these reductions could save between 21 and 54 lives and between $181 million and $437 million in health care costs annually. The plant will also capture at least 50 percent of the plant's carbon dioxide emissions and either store it more than a mile underground in Illinois or pipe the compressed CO2 to Gulf Coast states for use in enhanced oil recovery.

“Tenaska is committed to demonstrating that Illinois coal can be used in a clean, responsible and cost effective manner,” said Tenaska Vice President Bart Ford. “We look forward to receiving proposals from Illinois coal suppliers.”

Tenaska's RFP details specific requirements for the quality of coal it plans to utilize, when TEC begins commercial operations currently targeted for 2015 after a four year construction period that will employ up to 2,500 workers. Parties interested in submitting a proposal should contact Tenaska Vice President Ron Tanner at 402-691-9593 or rtanner@tenaska.com.

About Tenaska

Tenaska has developed approximately 9,000 megawatts (MW) of electric generating capacity across the United States. Tenaska's affiliates operate and manage eight power plants in six states totaling more than 6,700 MW of generating capacity owned in partnership with other companies. Tenaska Capital Management, an affiliate, provides management services for stand-alone private equity funds, with nearly $5 billion in assets, including nine power plants (with approximately 5,400 MW of capacity), and multiple natural gas midstream assets, including storage gathering and processing facilities.

Tenaska is applying proven pre- and post-combustion technologies on a commercial scale in its two environmentally friendly clean coal projects. Taylorville Energy Center will convert Illinois coal into clean-burning substitute natural gas, use it to generate electricity and capture more than 50 percent of the plant's CO2 emissions. Trailblazer Energy Center in Nolan County, Texas, is expected to be the first commercial scale, conventional coal-fueled power plant in the world to capture a significant portion of its CO2 after combustion. This plant's success would demonstrate how existing plants in the U.S. and China could be retrofitted cost-effectively with this carbon-reducing technology. Tenaska was recently cited in benchmarking studies by the Natural Resources Defense Council as having among the very best fleet-wide records in the United States for controlling emissions. For more information about Tenaska, visit www.tenaska.com.

The Taylorville Energy Center's Integrated Gasification Combined-Cycle (IGCC) with Carbon Capture and Storage process can be seen at www.cleancoalillinois.com, along with details on the project, the technology and the law.

for Tenaska
Dave Lundy, (312) 629-5245, dlundy@aileroninc.com
or
Tenaska
Jana Martin, (402) 691-9595, jmartin@tenaska.com

View Comments and Join the Discussion!