The DOE’s CCPI program was established to accelerate the adoption of CCS technology and to utilize the manufacturing know-how gained from these initial projects to increase the efficiency and to reduce the cost of CCS, thereby proving the commercial viability of the technology and its efficacy in both new and existing power generation facilities. Sithe’s affiliate, Desert Rock Energy, is the developer of the New Mexico project.

Sithe said that Desert Rock was already designed as a super-critical facility, incorporating the environmental technology for the removal of pollutants.

However, Sithe has now chosen to further reduce the pollutants produced by the facility through the incorporation of the latest CCS technology into the project. Desert Rock is said to be an ideal candidate for CCS technology as the site is located in close proximity to an existing pipeline used to transport carbon dioxide from Colorado to West Texas to increase oil production from mature fields.

Bruce Wrobel, CEO of Sithe, said: “Sithe’s management and our majority shareholder, Blackstone, pursue each of its power development projects in an environmentally responsible manner. We take into account the needs of the local community as well as the applicable environmental regulations with an eye toward developing facilities that address those needs and provide power safely and efficiently, while earning an economic return for our investors.

“With the continued support of the local community and the DOE, Sithe believes that, upon its completion, Desert Rock will be one of the first commercial scale examples of clean-coal technology in America and will provide a benchmark for future development projects.”