Governor Rendell Partners With Kentucky, Ohio to Attract $1 Billion Clean-Coal, Zero-Emission Power Plant

Governor Edward G. Rendell today announced Pennsylvania is partnering with Kentucky and Ohio to bring to the region the world's first coal-fueled, near-zero-emissions power plant -- a $1 billion project proposed by the FutureGen Industrial Alliance and the U.S. Department of Energy.

"This project promises to help decrease our dangerous dependence on foreign fuel, diversify our energy base to make us more secure at home and generate investments in new technologies that create jobs and clean the environment," Governor Rendell said. "The partnership also showcases why America's energy past is grounded here, and why the country's energy future starts here, too.

"If we want to achieve greater energy independence, then we need to change the way America produces fuel and thinks about energy. Oil companies continue to bring in huge profits at the expense of the average American family and business."

Governor Rendell, Ohio Governor Bob Taft and Kentucky Governor Ernie Fletcher have entered into a formal agreement to support the region's efforts to secure the proposed FutureGen power plant. The 275-megawatt facility will create more than 100 full-time research and facility jobs, an additional 1,000 construction jobs and increased university research activities.

The three governors also have agreed to create an Ohio River Valley Coal Research Consortium of the states' major universities and other research and technology development organizations. The consortium will advance the research objectives of FutureGen, provide review mechanisms for spin-off research projects, help transfer technological developments to industry and facilitate ongoing research collaborations.

Carnegie Mellon University, Pennsylvania State University and the University of Pittsburgh have agreed to offer and facilitate fundamental research support for FutureGen research activities.

The last year has seen an unrelenting increase in gas prices, forcing motorists across Pennsylvania and much of the country to pay record-high prices to fill up their cars. Although prices may level off, there is little chance they will retreat back to where they were in recent years.

Governor Rendell said recent energy and gasoline price spikes should serve as a warning to all American leaders that the time has come to promote conservation and clean domestic fuel development. The Governor has launched some major initiatives to build a clean energy future in Pennsylvania. With $219,908 in state aid, the East Coast's first state-of-the-art biofuels injection facility opened last fall in Dauphin County. The plant will replace 3.2 million gallons of foreign oil with domestically produced biodiesel, and it will keep $6 million worth of energy dollars in Pennsylvania by reducing the state's need to purchase imported fuels.

Governor Rendell last year banned the purchase of conventional SUVs for the state vehicle fleet and is building on this initiative with a major effort to replace conventional vehicles with hybrid vehicles. In the coming fiscal year, the state will purchase 30 hybrids and set in motion a process to continually build on this commitment so that by 2011, fully 25 percent of the fleet will be hybrids.

At least nine states have expressed interest in competing for FutureGen. All states competing for FutureGen must submit formal proposals to the FutureGen Industrial Alliance in Washington, D.C., by May 4, 2006. Pennsylvania, Ohio and Kentucky will support each other through the evaluation processes to increase the chances of the plant being constructed locally.

FutureGen is a unique opportunity to demonstrate clean-coal technology and create new markets for the vast coal reserves in Pennsylvania, Kentucky and Ohio, and offers the potential for environmentally sensitive redevelopment of the same coalfields that fueled and sustained the industrialization of the American economy for some two centuries.

Governor Rendell's vision and leadership have made Pennsylvania a leader in advancing clean coal technology. The Governor has put the policies and financial incentives in place needed to develop the state's indigenous natural resources, especially coal.

Pennsylvania is home to one of the nation's most progressive alternative energy portfolio standards, ensuring that 18 percent of all energy generated by 2020 comes from clean, efficient and advanced resources -- not just traditional renewables such as solar and wind power, but also coal mine methane, waste coal and coal gasification.

The nation's first coal gasification-liquefaction plant is proposed for construction in northeastern Pennsylvania, where the plant will use waste coal to produce 40 millions of clean-burning diesel fuel each year. Other state-of-the-art waste coal power plants are powering the state's economy by putting to use this energy source that otherwise would be a threat to the environment and a hazard to public health.

With encouragement and support of Governor Rendell, coal mine methane also is being captured and used for fuel rather than simply being vented into the air and wasted. Not only are projects like this a boon to the environment, but with record-high natural gas prices, this new fuel source benefits the economy as well.

For more information about Governor Rendell's energy initiatives, visit the Department of Environmental Protection's Web site at http://www.depweb.state.pa.us , Keyword "Energy."

The Rendell Administration is committed to creating a first-rate public education system, protecting our most vulnerable citizens and continuing economic investment to support our communities and businesses. To find out more about Governor Rendell's initiatives and to sign up for his weekly newsletter, visit his Web site at: http://www.governor.state.pa.us .

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