Dec 9 - McClatchy-Tribune Business News Formerly Knight Ridder/Tribune Business News - John G. Edwards Las Vegas Review-Journal

Wyoming Gov. Dave Freudenthal told members of the Western Governors Association on Friday that the group needs to determine the feasibility of renewable energy now that they have heard theoretical arguments about the benefits.

The association's Clean and Diversified Energy Advisory Committee in June proposed Western states develop renewable power resources, such as solar and wind power.

During a meeting at Green Valley Ranch Resort, however, Freudenthal said the association needs to determine whether some types of clean energy are feasible and cost-effective ways to generate electricity.

"There have been some programs, but we're at a point where theory and discussion collides with reality," Freudenthal said.

Among the practical problems he mentioned were renewable resources that are in sparsely populated areas far from cities that need the power.

In addition, the Wyoming governor said that Integrated Coal Gasification Combined Cycle power plants will be much more expensive than conventional power plants. The extra cost will be much more than 10 percent premium originally estimated.

IGCC plants convert coal into a gas for making electricity. These gasification plants can be attached with carbon capture or sequestration facilities. Environmentalists favor IGCC plants as an alternative to conventional pulverized coal-fired plants that emit large quantities of carbon dioxide, which is believed to contribute to global warming.

South Dakota Gov. Mike Rounds agreed with Freudenthal. The question is, Rounds said, Is "Who's going to pay the bill, how are we going to split (the bill) up and how are we going to move it forward."

Rich Halvey, a staff member of the association, suggested that the federal government could grant tax breaks for clean energy investments in an effort to advance the technologies to a point where they are more competitively priced.

Halvey said the association will discuss strategies with renewable energy trade groups for solar, wind, geothermal and other clean energy resources. Individual states also can create incentives, he said, mentioning the possibility of exempting solar power equipment from Nevada sales tax.

The association official said the United States has 250 years of coal reserves. "We need to continue to improve coal technologies until we get to a point of near zero emissions," Halvey said.