Aug 25 - McClatchy-Tribune Business News Formerly Knight Ridder/Tribune Business News - David J. Lee Odessa American, Texas

While saying good things about Odessa, the federal Department of Energy and the FutureGen Texas Team declined Thursday to discuss strengths or weaknesses of any of the sites on the FutureGen shortlist.

"At this stage, all four sites are on equal footing," said Scott Klara, Department of Energy deputy director for the office of coal power systems. "I'm sincere in saying that no one is leaning toward one site or another -- all are great sites."

Klara said the Department of Energy and the FutureGen Alliance team have visited all four sites -- Penwell in Ector County, Heart of the Brazos near Jewett, as well as the Illinois communities of Tuscola and Mattoon.

"They're all excellent sites," he said. "That's why they made our short list."

Klara underscored the importance of the FutureGen project and why the federal government is investing so heavily in it.

"Coal is our largest energy resource," he said. "It's cheap as dirt, literally. Coal is so important to the United States economy."

And if the FutureGen project comes to pass, it helps out the U.S. economy with more than just coal, Klara said.

"The unique part of this project's design is coal-production of hydrogen," he said, adding that the hydrogen can be converted to electricity or sold to a refinery for other uses.

"This project will provide the opportunity to evaluate a bed of technology," he said.

U.S. Sen. John Cornyn, R-Texas, also threw his support behind the FutureGen project Thursday night. While not endorsing the Odessa site over Jewett, Cornyn said Odessa has a lot to offer.

"The Permian Basin has always been the energy capital, some say epicenter, of the country, or the world," Cornyn said.

The senator, like the Department of Energy, wouldn't endorse one site over another.

"I've been assured there's no politics involved," he said. "This is strictly based on merit. I'd like to say I believe in that kind of world."

One of the things Cornyn said the Department of Energy and the FutureGen Alliance find most important is community support.

"They're looking for someone who might have a negative word," he said late Thursday afternoon. "So far, there haven't been any. I don't think there will be."

Scott W. Tinker, director of the FutureGen Texas coordinating team, doesn't expect any negative comments either.

"Let me say that the majority of residents in the Permian Basin welcome FutureGen," he said. "They view this important project as an asset for their region and a natural progression in their long history as a leader in the energy industry."

Meanwhile, Klara said the Department of Energy's next step in the process is to get the final specs on the project completed.

"We're working on a final plant design by the end of the calendar year," Klara said. "Then we'll know what the plant will look like. After that, we can dive into the environmental issues."

Those environmental issues are vitally important, he said.

"This project will only go forward if we are proven it's not an environmental threat," he said.

Klara also said the next step for Odessa is the same as for the other three possible sites.

"To work over the next year with the FutureGen Alliance and the Department of Energy in providing information both environmental and industrial," he said. "That will enable the DoE to look at the environmental impact, and enable to the FutureGen Alliance to see how good this site is compared to the other three."

Earlier in the day, Cornyn said he feels like Texas has a good chance to secure the FutureGen project; however, he declined to speculate whether he preferred to see the project in Odessa or Jewett.

"I've found it's not good to choose between your children," he said.