“Clean coal is a crucial element of our overall energy policy and our goal of a balanced, diverse energy portfolio that will provide Americans with energy and economic security and continued environmental improvement,” Secretary of Energy Spencer Abraham said.   “The technologies we seek to foster through Round II will help make it possible for coal to remain a cornerstone of our domestic energy portfolio, particularly for power generation, and to continue that role into the long-term future.” 

Coal generates more than 50 percent of America’s electric power and constitutes more than 90 percent of proved fossil fuel reserves. 

The call for proposals requires that prospective projects must ensure coal is used for at least 75 percent of the fuel energy input to the process, while electricity is at least 50 percent of the energy-equivalent output from the technology demonstrated.   Additionally, proposals must show the potential for rapid market penetration upon successful demonstration of the technology concept.

Round II projects will support both the Clear Skies Initiative to reduce emissions, particularly mercury, by about 70 percent and the FutureGen Initiative to create the world's first zero-emissions coal-based power plant, which will include carbon removal and sequestration and the production of hydrogen to support other initiatives, including the Climate Change Initiative. 

DOE is encouraging proposals for coal gasification system advances that enhance efficiency, environmental performance, and reliability as well as expand the gasifier’s flexibility to process a variety of feedstocks (including biomass and municipal/industrial waste co-fired with coal).  Advances in gasification-based systems are required to successfully commercialize technologies that will attain the near-zero emissions goals of the Clean Coal Technology Roadmap.

Technologies that permit better management of carbon emissions are also being strongly encouraged.   Recently, as part of his National Climate Change Policy, President Bush placed a high priority on encouraging new technologies that can reduce these emissions while keeping energy at reasonable prices.

For each project selected by the Energy Department, industrial sponsors must be willing to at least match the federal funding share. There will also be a requirement for repayment from commercially successful technologies, which will be used to underwrite future clean coal research.

Industry has until June 15, 2004 to submit proposals, and DOE anticipates selection of winning projects by the end of the calendar year.

Media Contact(s):
Jeanne Lopatto, 202/586-4940
Drew Malcomb, 202/586-5806