Articles by Sean Casten

Expensive coal + hydrogen = ?

As follow-up to my post yesterday: There is now a bidding war emerging for the FutureGen clean coal plant, targeted to cost $6500/kW. Texas and Illinois are fighting to win this fantastic prize. If they get it, they'll ensure they can keep burning coal, but will do it in a plant that is absurdly expensive.

As a fringe benefit, they'll generate hydrogen (aka, a fuel that no one is presently demanding for their vehicles), on the off chance that if a market arises they can sell it. Goodness knows they'll need it if the coal plant is ever going to pencil out.

Presumably, this is a better idea than investing in more cost-effective renewable/cogen/efficiency projects that would actually produce a product people want.

See an article from Restructuring Today, "Illinois works hard to win FutureGen clean coal/hydrogen plant" ($ub req'd), below the fold:

The cost of the FutureGen ‘clean coal’ plant doubles

This from Greenwire today ($ub req'd): "The DOE FutureGen program has announced that their "clean coal" plus carbon sequestration is checking in at $1.8 billion for a 275 MW plant, or $6500/kW."

OK, so it's at an early stage, but even if you cut that cost in half, it still doesn't pencil out. How long before we get over the illusion that coal is cheap?

Story below the fold. (Note that I have given them the benefit of the doubt that their description of the plant as a "275 watt" facility was a typographical error.)

NY Gov. Spitzer favors 100% auction under RGGI

New York state has announced that they intend to auction 100% of their carbon allowances under RGGI. This is a good thing.

There is a 60 day comment period now open. File those comments, NY Gristers!

Don’t believe the power company hype about coal’s low price

This just in from Restructuring Today ($ub req'd): Sunflower Electric, of the recent Kansas decision not to allow an electric permit because of CO2 concerns, has argued that the decision was a bad idea because it will drive up power prices. But their math is wrong.

Here's a partial excerpt from the RT story:

A decision by the Kansas Department of Health & Environment to deny a coal power plant permit would mean higher power bills for some. That's "an absolute certainty," Sunflower Electric Power told us Friday.

How much higher? At today's prices the firm could pay 1.5¢ for coal versus 8¢ for natural gas.

Uh, no. But this is a mistake that is aggressively and frequently made by our electricity generators.