The move came in response to possible emissions reduction legislation, which could ultimately force utilities to shut down power plants, according to AEP chairman Michael Morris.
“With Congress expected to take action on greenhouse gas issues in climate legislation, it’s time to advance this technology for commercial use,” he said.
AEP will use chilled ammonia technology, created by French engineering company Alstom, to turn the CO2 into a liquid by compressing it under pressure and then injecting into the ground.
The process has demonstrated the potential to capture more than 90% of CO2 at far less cost than other carbon capture technologies, according to AEP. It is also applicable for use on new power plants as well as the retrofit of existing facilities.
The system will first be installed on AEP’s 1300 megawatt Mountaineer Plant in New Haven in mid-2008 to capture more than 90,000 tonnes every year. It will then be designated for geological storage in deep saline aquifers at the site.
The move follows a three-phase, 10-year project on the site sponsored by the US Department of Energy. All three phases were supported by $US7.2 million ($9 million) in government funding and US$1.4 million in cost-shared funding from industry partners, including laboratory and feasibility studies, economic and engineering analyses, and site characterisation, testing and design feasibility studies.
AEP will also install the system at its 450MW North-Eastern Station in Oklahoma, where it is expected to save more than 1.3 million tonnes of CO2 a year. The plant will be operational by 2011.
He said the Mountaineer project was expected to cost more than $US50 million and the North-Eastern trial more than $US250 million.
Morris continued that AEP was relying on the US Government to pick up the majority of the tab for the two projects, saying the pioneering technology was as important to governments as generators.
“Coal is the fuel used to generate half of the nation’s electricity; it fuels about 75% of AEP’s generating fleet,” he said.
“By advancing carbon capture technologies into commercial use, we are taking an important step to insure the continued and long-term viability of our existing generation.”
