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University of Wyoming and GE reach agreement on coal gasification research facility

GE Energy and the University of Wyoming (UW) reached agreement last week on a proposed development plan for the High Plains Gasification Advanced Technology Center. This facility, consisting of a small-scale gasification system, would enable researchers from both GE and UW to develop advanced gasification and “cleaner” coal solutions for Powder River Basin and other coals.

The agreement outlines the development process for the facility including design, engineering, and construction; the operation of the governance board, which will serve as the board of directors for the joint project; and additional contracts to be negotiated.

“This is the beginning of what I hope is a productive, long-term relationship with GE to demonstrate how Wyoming coal can be utilized into the future,” Wyoming Gov. Dave Freudenthal said. “There is a community of interests here—for GE, there is a desire to develop and utilize new technology to gasify Powder River Basin and other Wyoming coals. For the state of Wyoming, there is a desire to continue to sell that coal in an evolving energy market.

“As the demand for electricity continues to rise, this question of managing carbon while still utilizing coal is an issue we will be confronting for many years to come. I am confident that the research developed at this facility will help us answer some of these questions and keep coal in the mix of cleaner and more secure domestic fuels long into the future.”

UW, with the support of GE Energy, will execute a site selection and acquisition process based upon a set of jointly developed criteria. The criteria will include consideration of a number of factors, including availability of land appropriate for the facility, availability of necessary utilities and waste disposal facilities, proximity to coal supply, environmental permitting requirements, and others.

The cost of the center will be split by GE Energy and UW. The state’s contribution will come from appropriations to the university from the federal Abandoned Mine Reclamation Fund. The initial state appropriation in 2008 was $20 million.

Gov. Freudenthal proposes to seek an additional $30 million during the 2009 legislative session. The university will own the facility and be responsible for its operation. Under the agreement, GE Energy will lease the facility from the university, with options to renew.

Wyoming is uniquely positioned in the nation’s energy landscape and has vast coal reserves capable of supporting a substantial portion of the nation’s energy needs. The state produces approximately 40% of all the coal used in the U.S. to generate electricity.

Sources: University of Wyoming, GE

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