The initiative is developing a supersonic shockwave compression system that will reduce the cost and energy consumption associated with compressing CO2 for storage in deep underground porous rock formations.

Sequestering CO2 in underground formations requires compressing the gas to more than 1,500 pound-force per square inch. Existing compression technology represents a substantial part of the capital and operating costs of developing CO2 capture and storage systems. The compression system being developed by Ramgen will use supersonic shockwaves to compress CO2 for capture and storage. If successful, the shockwave compression technology is projected to reduce the capital cost of CO2 compression equipment by as much as 50% and reduce operating costs of a carbon capture and sequestration (CCS) system by at least 15%.

Nick Akins, executive vice president of generation at AEP, said: “Advancing technologies to capture and permanently store carbon dioxide from coal-fueled power plants is critical if we are going to reduce global concentrations of greenhouse gases.

“Now that we have completed construction and are operating the CCS validation system at our plant in West Virginia, our focus is on working to better understand and optimize that process to help ensure that the economics of CCS make sense for our customers and for use on the world’s vast fleet of coal-fueled power plants.”

In addition to providing financial support, AEP will consult on the development and demonstration of a 10,000-horsepower CO2 compressor that will be tested at Dresser-Rand’s test facility in Olean, New York, in 2011. AEP has also committed to working with Ramgen and Dresser-Rand on potential future tests of the shockwave compression technology at AEP sites.

Ramgen was awarded a $20m grant in August from the American Recovery and Reinvestment Act for development of the shockwave compression technology.