Texas Clean Energy Project

Office of Fossil Energy

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On March 12, 2010, DOE announced the award of a Cooperative Agreement to Summit Texas Clean Energy, LLC to construct the Texas Clean Energy Project (TCEP), an integrated gasification combined cycle (IGCC) poly-generation facility with fully integrated CO2 capture.  Under Round 3 of the Clean Coal Power Initiative (CCPI), DOE is providing up to $450 million in financial assistance, including funding from the Recovery Act of 2009. Due to the expiration of unused funds provided under the Recovery Act in September 2015, the total DOE funding for the project was reduced by approximately $104 million to $346 million.  The project is exploring alternative financing options as it strives to reach financial close.

The TCEP will nominally generate 405 megawatts (gross) of electricity using sub-bituminous coal as feedstock, and supply the utility grid under the combination of a power purchase agreement with CPS Energy of San Antonio, Texas, and market sales. The Siemens power block will consist of a SGT6-8000H high-hydrogen capable combustion turbine generator set, a triple-pressure heat recovery steam generator, and a SST-900RH reheat steam turbine generator set. The project will use a single Siemens SFG-850 entrained-flow, oxygen-blown gasifier and two-stage water-gas shift to produce high-hydrogen synthesis gas (syngas). A Linde Rectisol® acid gas removal (AGR) system will be used to achieve greater than 90 percent CO2 capture from the entire syngas stream. The AGR system also captures sulfur-containing gases for on-site for conversion to sulfuric acid product.

The project will be located in Penwell, Texas. Partners include: Blue Source; China Export-Import Bank; China Huanqiu Contracting & Engineering Corporation (HQC); CH2M HILL; Selas Fluid Products Corp. (Linde AG); Siemens AG; and Texas Bureau of Economic Geology.

TIMELINE

POWER PURCHASE MEMORANDUM OF UNDERSTANDING SIGNED

On June 20, 2011, the Department of Energy announced that CPS Energy of San Antonio, Texas had signed a Memorandum of Understanding to purchase approximately 200 megawatts (MWe) of electricity from the TCEP. The agreement represents the first U.S. purchase by a utility of low-carbon power from a commercial-scale, coal-based power plant with carbon capture. The Power Purchase Agreement between CPS Energy and TCEP was finalized in September 2014.

DRAFT EIS ISSUED

On March 19, 2011, the Department of Energy released the draft Environmental Impact Statement for the TCEP project for public comment.

FINAL EIS ISSUED

On August 15, 2011, the Department of Energy released the Final Environmental Impact Statement for the TCEP project for public comment.

ROD ISSUED

On September 29, 2011, the Department of Energy released the Record of Decision for the TCEP project.

CURRENT STATUS

Over the past six years, the Office of Fossil Energy has worked closely with TCEP to help enable the success of their project.  Unfortunately, while Summit Power has made some progress in negotiating engineering, procurement, and construction agreements with the private sector, many major milestones remain unmet, including most critically a lack of progress toward obtaining financing for the project. On August 22, DOE notified Summit Texas Clean Energy, LLC of its final determination to discontinue the cooperative agreement for failure to achieve the technical objectives of phase 1 of the project.