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GE-UW Coal Gasification Research Facility Shelved on Federal Energy Policy Uncertainty

Plans have been delayed to build a small-scale coal gasification facility that would have enabled researchers from the University of Wyoming (UW) and GE Energy to understand the conversion of feedstock by gasification into syngas for use in power generation. The delay of at least 18 to 24 months stems from a lack of federal energy policy, Wyoming’s Governor Matt Mead said on Friday.

GE would have used the High Plains Gasification-Advanced Technology Center to further gasification technology and enhance its gasification business. Wyoming, a state that produces 40% of the nation’s coal, backed the facility because it focused on looking at coal gasification solutions for coal from the Powder River Basin and other parts of Wyoming. The center would have also researched downstream conversion of syngas into liquid fuel and chemicals.

Plans to build the facility were announced in 2008. From UW documents, construction was expected to begin next year, with the center beginning operations by 2014.

In a statement, Republican Governor Mean pointed out that the decision to “pause development” of the High Plains Gasification-Advanced Technology Center “until uncertainty around coal utilization is reduced” was primarily GE’s. Though he expressed disappointment about the decision, the governor added that that the delay—and other energy sector decisions to delay similar projects—was not unexpected given the lack of a federal energy policy.

“Capital from the private sector only flows to large and ambitious projects when there is reasonable regulatory, legal and financial certainty,” Governor Mead said. “This is a real world example of the local impact of the federal government’s failure to provide a policy path forward for energy use in America. An energy policy must include the responsible use of our coal resources. Without a clear policy, investors and developers do not have certainty and cannot plan for risk, which is critical in making decisions to build modern, efficient plants.”

GE said it would reassess the energy environment in about two years. “When government policy and economic realities are aligned in the U.S., we plan to be a leader in cleaner coal technologies,” said Keith White, general manager of GE Energy’s gasification business.

Sources: POWERnews, Gov. of Wyoming, GE, UW

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