November 22, 2008

Commercial viability of Futuregen to be known only in 2020

According to Mr James L Connaughton chairman of White House on Environment Quality, the commercial viability and technical reliability of the US sponsored Futuregen project, which is aimed at setting up zero emission coal fired power plants and of which three Indian public sector energy companies, namely Coal India Limited, NTPC and ONGC are partners, will be known only in 2020 as the project is currently undergoing restructuring.

Mr Connaughton pointed out that there would be more reserves and greater international participation. Instead of earlier one time funding to the tune of USD 2 billion, there would now be funding to the tune of USD 1 billion annually plus USD 9 billion worth of loan leverage. Also, instead of the earlier plant to set up one pilot plant by 2012, there would three to 4 commercial plants in addition to a dozen R&D plants across the world.

Although Futuregen project was being discussed for a long time, Mr Bhattacharyya chairman of CIL felt that not much progress had been made in this regard. He also wanted to know if carbon caption storage could be implemented in respect of existing plants.