Texas Clean Energy Project (TCEP), a company of Summit Power Group, has declared that it will be contracting a 25 year power purchase agreement (PPA) with CPS Energy, a natural gas and electric utility company owned by the municipality, to trade 200 MW of power generated from its first-of-its-kind integrated gasification combined cycle (IGCC) power generation facility.
TCEP will own and operate the IGCC 400 MW power/poly generating plant that will capture around 90% of carbon dioxide, 99% of sulfur and over 95% of mercury and remove around 90% of nitrogen oxides generated from the coal powered plant. The company has already entered into off-take accords to sell compressed carbon dioxide and urea fertilizer for use in enhanced oil recovery project in the West Texas Permian Basin.
TCEP is planning to break ground for the project in Penwell, Texas by the year end and is looking forward to commence its production at the end of 2014 or early part of 2015. Texas Commission on Environmental Quality (TCEQ) has already provided the final air quality permit for the company last December without any objection from the members.
Earlier, the U.S. Department of Energy has granted TCEP $450 million in the form of funds from the America Recovery and Reinvestment Act (ARRA) and the Clean Coal Power Initiative (CCPI).
Source: http://www.texascleanenergyproject.com/