Clean Gasification Technology Critical to Meeting the Nations Energy Needs
Thursday January 29, 2009
Press release
ARLINGTON, Va.– Today, the Gasification Technologies Council (GTC) called on Members of Congress to support the Economic Stimulus and Energy Policy provisions to assure completion of Integrated Gasification Combined Cycle (IGCC) power generation and Industrial Gasification (IG) projects that qualify for tax credits and Federal Loan Guarantees (FLG’s). This will help gasification realize its full potential in creating jobs for American workers and providing an environmentally responsible way to produce power and products from domestic sources.
“Gasification provides the lowest cost solution to produce power, chemicals, fertilizers and fuels from coal, petroleum residues, biomass and wastes while capturing carbon dioxide for sequestration. This way of producing energy provides the path forward for crucial sectors of the economy by using lower cost domestic energy resources,” said James Childress, Executive Director of the GTC. “Congress needs to act now to give the American people the full benefit of this technology. In today’s economic environment, it makes sense to support gasification for both short-term and long-term gains.”
Gasification is an environmentally responsible way to produce power and products from carbon-based materials. Gasification does not involve combustion (or burning), but instead uses intense pressure combined with oxygen and steam to convert carbon-based materials directly into gas. It provides an alternative to natural gas in the manufacture of chemicals, fuels and fertilizer.
In their letter to Members of Congress, GTC specifically asked for:
* A doubling of the Environmental Policy Act of 2005 Sections 48A and 48B investment tax credit (ITC), maximum project caps for all IGCC power generation and industrial gasification projects, and a commitment to a program to commercialize gasification-carbon capture and sequestration (CCS) technologies with ten or twelve commercial scale projects;
* Extensions of “in service” deadlines to accommodate projects that have been delayed by economic and policy driven factors beyond their control;
* An increase in the value of Environmental Policy Act of 2005 Section 45Q CCS production tax credit (PTC) by at least two fold and extension of the PTC availability to all eligible entities through 2019 in order to ensure that new generation and industrial projects can proceed with certainty concerning carbon sequestration; and
* For all projects under development through the FLG process: an increase by $1 Billion in FLG loan volume; coverage of credit subsidy costs; timely regulatory review and process implementation; and extension of credit at reasonable rates to critical independent, but integral, project components (e.g., CCS and air separation).
GTC represents more than seventy-five companies that are playing an important role in revitalizing the American economy, at the same time that they are helping to meet the nation’s energy needs. Members of GTC provide technologies, equipment or services, or own and operate plants that account for more than 95% of gasification capacity around the world. They are also involved in a number of new U.S. projects being planned, designed, or under construction.
For additional information, please contact James Childress at jchildress@gasification.org or see www.gasification.org.
Contact:
Gasification Technologies Council
James Childress, 703-276-0110
jchildress@gasification.org
