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Future of Texas Energy
December 8, 2009

Patience paid off in Penwell.

This burg near Odessa had declined from oil boomtown to ghost town. Now, decades after being left for dead, Penwell's unlikely resurrection could help chart a path for Texas' energy future.

Written by Editorial , The Dallas Morning News

Coal_anthracite

Patience paid off in Penwell.

This burg near Odessa had declined from oil boomtown to ghost town. Now, decades after being left for dead, Penwell's unlikely resurrection could help chart a path for Texas' energy future.

Last week's announcement that Summit Power has won a $350 million federal grant to build a coal gasification plant in West Texas positions our state as a leader in developing the next generation of power facilities. In Penwell, Summit plans to build a cleaner coal plant that captures carbon dioxide emissions. The CO2 then could be sold to oil companies to enhance petroleum recovery.

For years, gasification has been touted as the next big thing for fossil fuels. The prospect of turning coal into gas and curtailing pollutants spewed into the air has become increasingly appealing as efforts to limit carbon emissions have gained momentum.

But forward progress has come in fits and starts.

The Bush administration launched and eventually abandoned FutureGen, which was supposed to be a government-funded, near-zero-emissions coal plant. Penwell was a contender for FutureGen as well. But after a years-long winnowing process, the project was awarded to Mattoon, Ill. – and then abandoned altogether.

When FutureGen died amid rising costs, some speculated that clean coal technology remained years – perhaps even decades – from becoming reality. But to its credit, Summit Power has continued to aggressively pursue a gasification project, lining up incentives in the Legislature and seeking funds from Washington.

Helping to bolster Summit's efforts has been former Dallas Mayor Laura Miller, who crusaded against dirty coal plants and later remade herself as a champion of a cleaner alternative.

While Summit received a significant boost from the $350 million Department of Energy grant, the company, which is based in Washington state, isn't just playing with house money. The project is expected to cost about $1.75 billion.

Summit hopes to break ground in Penwell in a year, and to complete the project in 2014. If the company can pull this off, the Penwell plant could be a game-changer in a state that produces more greenhouse gases than any other.

What's more, the EPA's announcement Monday that it would pursue limits on carbon dioxide emissions only underscores the urgent need to pursue clean energy options.

Gov. Rick Perry continues to characterize attempts to regulate carbon as senseless. But his 38-page rebuttal, submitted to the EPA, is probably a futile exercise. Federal officials have made clear that soon, Texas will not be permitted to pollute with impunity. Texas' future, Gov. Perry, is in Penwell. This is one change we can embrace without getting dirty.

 

Fed-funded power

The U.S. Energy Department announced $979 million in federal grants supporting the development of coal-fired power plants that capture carbon dioxide emissions. The recipients include:

 

• Summit Power, which will receive $350 million to install carbon-capture technology at a plant that will be built near Odessa.

 

American Electric Power, which will receive $334 million to capture and store carbon dioxide at a plant in West Virginia.

 

• Southern Co., which will receive $295 million to retrofit an Alabama plant and collect CO2.

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