http://www.kallanishenergy.com/2017/02/06/another-delay-starting-7b-carbon-capturing-kemper-plant/
New delay in starting $7B carbon-capturing Mississippi plant
February 6, 2017
Mississippi Power has reported another delay in opening its $7 billion
Kemper Plant, the second carbon-capturing power plant in the U.S.,
Kallanish Energy reports.
Work is continuing on final start-up activities at the 582-megawatt,
coal-fired power plant north of Meridian in Kemper County and the new
in-service date is late February, said the company, a subsidiary of
Southern Co.
The company reported the new plant has achieved integrated operation of
both gasifiers and has been producing electricity by creating and
burning syngas in both combustion turbines since Jan. 29. That is the
plant’s “most significant milestone to date,” Mississippi Power said, in
statement released last week.
The plant must still be shut down for one week prior to going into
service to make last-minute repairs and final improvements, Mississippi
Power said.
The company is also updating its economic viability analysis of the
project. That reported is expected to be completed by Feb. 28.
The plant will be the first clean-coal plant of its kind in the U.S. It
is the model for carbon capture and sequestration (CCS) technology.
It will turn lignite, a low-grade coal from an adjoining mine, into what
is called synthesis gas or syngas, stripping out 65% of carbon dioxide
in the process. The syngas is then burned to generrate electricity and
the carbon dioxide is shipped 60 miles via pipeline to an oilfield to
aid in recovering additional oil.
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http://www.politico.com/agenda/story/2015/05/billion-dollar-kemper-clean-coal-energy-project-000015
Original estimated price: $1.8 billion
Current admitted cost: over $7 billion
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http://www.foe.org/news/news-releases/2016-11-report-kemper-disaster-could-get-billions-from-taxpayers
[As near as I can tell, the Kemper plant has received almost a $billion
in taxpayer support (multiple levels) so far. Now, legislators are
working to add another $4.5 billion to that pot.
links in on-line article (and better formatting)]
Report: Kemper disaster could get billions from taxpayers in lame duck deal
Posted Nov. 15, 2016 / Posted by: Kate Colwell
WASHINGTON, D.C. — A new report from Friends of the Earth and Taxpayers
for Common Sense sounds the alarm on a lame duck tax deal that could
send billions in subsidies to Southern Company’s long-troubled Kemper
coal plant in De Kalb, Mississippi.
“This disaster is billions of dollars over budget and years behind
schedule,” said Lukas Ross, climate and energy campaigner at Friends of
the Earth. “Kemper is a stark reminder of why carbon capture and
sequestration is a waste of our tax dollars and a false solution to the
climate crisis.”
As Congress returns to work following the election, big polluters are
working to extend and expand a tax credit for carbon capture and
sequestration – or CCS – facilities like Kemper as part of a year-end
tax deal. The result could be a massive windfall for Southern Company
when Kemper finally comes online—hypothetically as soon as 31 December
2016.
“Squandering more tax dollars on carbon capture for coal plants like
Kemper is just throwing good money after bad,” said Autumn Hanna, senior
program director at Taxpayers for Common Sense. “Extending or expanding
these tax breaks makes no sense and will cost taxpayers dearly.”
Since February 2016, lawmakers have introduced three separate bills to
extend and expand the CCS tax credit for new facilities. The report
released today analyzes the size of the taxpayer giveaway to Southern
Company under each of these scenarios.
General findings:
A House bill by Rep. Mike Conaway (R-TX) to make the tax credit
permanent would send Southern Company $4.5 billion throughout the life
of the plant
An amendment from Sen. Heidi Heitkamp (D-ND) would send Southern
Company $695 million over the first ten years Kemper is in operation.
A Senate bill from Sens. Heidi Heitkamp (D-ND) and Sheldon
Whitehouse (D-RI) would send Southern Company over $1 billion over the
first 12 years Kemper is in operation.
Even if the CCS tax credit does not receive an extension, Kemper is
still eligible for the expiring version of the credit, worth an
estimated $102.8 million between 2017 and 2019
Pressure is building in Washington to renew a variety of expiring tax
breaks. A package like this represents the likeliest way for tax credits
for CCS to be extended.
“We need to make sure this garbage doesn’t find its way into a tax
extenders package,” said Ross. “If it does, then this lame duck session
will be another major payday for big polluters.”
Read Frequently Asked Questions about Kemper and the CCS tax credit here.
Background on Kemper:
Kemper is a coal facility under construction in De Kalb, Mississippi.
Utility giant Southern Company designed the project to turn coal into a
gas, burn the gas for electricity, and capture an estimated 65 percent
of the associated carbon dioxide emissions through a process called
carbon capture and sequestration (CCS). Once captured, the emissions
will be piped to nearby oil fields and pumped underground to help
stimulate production as part of a process called enhanced oil recovery
(EOR).
The long-controversial project was originally projected to cost $2.4
billion and to come online in 2014, but the price tag now stands at $6.9
billion—and after repeated delays, the latest placed in service date
has been pushed to December 31, 2016.
Background on the CCS tax credit:
The Emergency Economic Stabilization Act of 2008—better known as the
Wall Street bailout – created one of the biggest tax breaks for CCS on
the books. Known as 45Q, the provision allows power plants like Kemper
and other industrial emitters to claim a tax credit for every ton of CO2
they capture. The credit is worth $20 per metric ton CO2 captured and
stored underground and $10 if the CO2 is captured and used for EOR.
Congress never intended the subsidy to be permanent, and timed it to
expire after 75 million credits had been claimed—a benchmark expected as
soon as 2019.
Background on the proposed changes to the CCS tax credit:
Bill
Sponsor(s)
Description
Estimated Subsidy for Kemper
H.R. 4622
Rep. Mike Conaway (R-TX)
Make the tax credit permanent
Steadily increase value of credit to $30 per ton for EOR for new
facilities
$4.5 billion throughout life of the plant
S.Amdt.3645
Sen. Heidi Heitkamp (D-ND)
Steadily increase per ton credit to $30 for EOR for new facilities
Allows new facilities to claim credit for ten years
$695 million over ten years
S.3179
Sens. Sheldon Whitehouse (D-RI) and Heidi Heitkamp
Steadily increase per ton credit to $35 for EOR for new facilities
Allows new facilities to claim credit for 12 years
$1 billion over 12 years