The Summit Power Group has applied for federal grant under the Clean Coal Power Initiative, Round 3, to build a $1.75 billion clean coal power plant at Penwell, 15 miles west of Odessa.
The funding request represents approximately 20% of the total cost of the project. The company said that the Department of Energy will reveal grant winners in November.
The Texas Clean Energy Project (TCEP) will be an integrated combined cycle (IGCC) 400 MW power plant in Permian Basin with a carbon capture rate of 90%.
According to the company, currently there are no commercial power plants that capture carbon dioxide (CO2) on a large scale. Reportedly, the plant will capture 3 million tons of carbon dioxide a year for enhanced oil recovery (EOR) operations in the basin.
Gasifiers, power island and controls for the project will be provided by Seimens.
Harry Morehead, Siemens manager of IGCC and gasification sales and marketing, Americas, said: “This project is now one of Siemens’s highest priority IGCC/CCS projects currently under development in the United States. It is a project of national and potential global importance.
“Siemens believes that the combination of Summit Power’s exceptional track record of developing power projects, Fluor’s leading project engineering and execution capabilities, coupled with Siemens’ advanced technologies, will deliver a true showcase project for the United States and the world.”