Seamwell president Matthew Idiens said that the plant on the YiHe coal field will be capable of generating about 1,000MW of electricity for 25 years.
The project will employ carbon-capture technology which will first collect the emissions linked to climate change before combustion, and then store them underground permanently.
The coal steam will be used to create synthesis gas by igniting it with air and oxygen injection and the gas will be used at a combined cycle power plant after being cleaned.
This will help the plant to reduce carbon emissions by 50% compared to the conventional coal-fired plants.
The plant will be funded using a project finance model and on receiving the necessary approvals from the Chinese government, Seamwell will form a 49% joint venture with CECEP holding the rest of it.
Production from the plant is expected to start by the end of 2014 or 2015, reports bloomberg.com
