TCC Letter: Integrated Gasification Combined Cycle
October 30, 2008
Mr. Barry Smitherman, Chairman
Public Utility Commission of Texas
1701 N. Congress Avenue
Austin, Texas 78711
Dear Chairman Smitherman,
Texas is currently competing with New Mexico to attract a large-scale Integrated Gasification Combined Cycle (IGCC) clean coal power plant that captures the bulk of the carbon dioxide it produces. If we succeed in attracting this project to our state, it will be the first project of its kind in the world and result in a $3 billion investment in Texas.
The proposed project site in Penwell, Texas is just 15 miles west of Odessa and located at the exact site previously proposed for the FutureGen project, which the Texas Legislature overwhelmingly supported (HB 2608, 80R). The 500 MW IGCC clean coal power plant will guarantee a minimum of 60% carbon capture and could be operational as early as the fourth quarter of 2013.
Texas oil producers in the Permian Basin use CO2 from naturally occurring underground domes in New Mexico and Colorado for Enhanced Oil Recovery (EOR). When the CO2 is injected into depleted wells, it causes an additional 15 percent or more of an oilfield’s original crude oil volume to rise to the surface. Up to 98 or 99 percent of all CO2 used for EOR can feasibly be sequestered for many thousands of years in depleted oil fields.
The demand for the CO2 is so high that two 600 MW IGCC plants could be built in West Texas tomorrow and find a robust market for as much CO2 as they could capture, liquefy and pipe to the oil fields.
The Texas Conservative Coalition wholeheartedly supports energy diversification, and environmental protection. Toward that end, we believe that in order to attract a project with global implications, we must allow the plant to operate without being curtailed during periods of high wind generation in the newly-established Competitive Renewable Energy Zones (CREZ).
This is the most critical element in insuring the viability of alternative forms of generation; thus, securing our transmission stability and security. The Texas Conservative Coalition respectfully requests that you give dispatch priority to these types of clean coal projects in the CREZ zones and give Texas the opportunity to be home to the first IGCC clean coal plant in the world that sequesters CO2.
Please accept our most sincere appreciation for your leadership on this issue and for your consideration of our request. If we may provide you with any additional information, please do not hesitate to contact us.
Sincerely,
State Representative Wayne Christian
House District 9 – Center
State Representative Ken Paxton
House District 70 – McKinney
State Representative Leo Berman
House District 6 – Tyler
State Representative Dan Flynn
House District 2 – Van
State Representative Phil King
House District 61 – Weatherford
State Representative Larry Taylor
House District 24 – Friendswood
State Representative John Zerwas, M.D.
House District 28 – Richmond
State Representative Betty Brown
House District 4 – Terrell
State Representative Bill Callegari
House District 132 – Katy
State Representative Jim Jackson
House District 115 – Carrollton
State Representative Tan Parker
House District 63 – Flower Mound
State Representative Charlie Howard
House District 26 – Sugar Land
State Representative Kelly Hancock
House District 91 – North Richland Hills
