Washington (Platts)--29Jan2009

Six US senators from Midwest coal states, including Assistant Majority
Leader Richard Durbin, on Thursday asked Energy Secretary Steven Chu to revive
FutureGen, a $1.8-billion government-industry project designed to demonstrate
the ability to capture and store CO2 emissions from a coal-fired power plant.

The Bush administration's DOE early last year canceled the project,
saying it was concerned that the costs would become too high for the
government. Industry officials working on the project in late 2007 selected
Mattoon, Illinois, as the preferred site for the planned 275-MW plant.

The senators, led by Durbin, an Illinois Democrat, asked Chu to reinstate
the project by releasing the Record of Decision, a procedural step that would
allow the department to open contract talks with industry participants and
start funneling money toward the effort.

Neither Chu nor the White House have said whether they will revive the
project, but President Obama, a former senator from Illinois, is believed to
be sympathetic to FutureGen supporters.

"The Department can indicate its intention to move forward with the
project by quickly releasing the Record of Decision," the senators said in a
letter. "We look forward to working with you and the new Administration to see
this initiative become a reality."

In addition to Durbin, the letter was signed by Republicans Kit Bond of
Missouri and George Voinovich of Ohio and Democrats Roland Burris of Illinois,
Sherrod Brown of Ohio, and Claire McCaskill of Missouri.

Durbin and several other Illinois lawmakers met with Chu earlier this
month to urge him to bring the project back. After that meeting, Durbin told
reporters that Chu "had a very positive response to the research aspects" of
the venture. "It is clear to me that he is thinking through the best way for
this administration to address coal research in the future."

After it canceled FutureGen, DOE asked for industry proposals for three
new CO2 capture and sequestration projects that would be structured to limit
the government's exposure to future cost increases. The agency received
applications from industry, but never made any awards.

DOE could not be reached to comment on the senators' letter.

--Alexander Duncan, alexander_duncan@platts.com