The federal government will contribute $235 million of the $557 million needed over the next 10 years to build the plant in Orlando, Fla. The Orlando Utilities Commission and Kellogg, Brown and Root are helping develop the new technology.

Together, they plan to design, construct and demonstrate an integrated gasification combined cycle power generation system at the Orlando Utilities Commission´s Stanton Energy Center. The system will produce 285 megawatts of electricity, which will power about 285,000 households. It is scheduled to begin operatiing 2010.

"The funding for this new Southern Co. facility allows for greater availability of more clean coal technology in the U.S.," said Jeffrey Jarrett, assistant secretary for fossil energy at the Department of Energy.

IGCC technology produces a coal-derived synthesis gas for power generation and is considered an environmentally preferred means of generating electricity from coal. The system being developed by Southern Co. and its partners will add advanced emission controls to make it one of the cleanest, most energy efficient coal power plants built to date, according to Energy Department officials.