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US action to support clean energy

Friday, 4 May 2007

A bill has been introduced in the USA that would see all new coal-fired power stations forced to include carbon abatement technology. Separately, congressmen are urging the rapid deployment of cleaner energy technology.

Tabled by senator John Kerry, the Clean Coal Act of 2007 recognises that up to 190 coal-fired plants are slated for construction in the USA. Although they would provide a huge 96 GWe of electricity to the grid, they would also emit about 30 billion tonnes of carbon dioxide during the course of their lives.

Kerry said: "Unless we can build clean power plants, we should not be building them." Citing climate change concerns, Kerry's bill would see any coal-fired power plants on which construction starts from now on limited to emissions of 129 kg per MWh of power produced.

The definitions include coal plants of all sizes and includes units that would gain efficiency by cogenerating heat. The emissions limit would be reconsidered every five years "to reduce the maximum rate of carbon dioxide emissions if a reduced level is achievable..." through the use of demonstrated new technology.

Meanwhile, the Energy and Commerce Committe of the House of Representatives has written to President George Bush over loan guarantees for carbon-reducing investments.

The Energy Policy Act of 2005 allows the government to provide loan guarantees of up to 80% of total capital costs for projects that reduce or avoid greenhouse gas emissions. The committee's chair, John Dingell, wrote: "The loan guarantee program is a crucial bridge to facilitate development of new technologies such as advanced nuclear, renewable energy systems (including cellulosic ethanol) and coal projects that capture and sequester carbon dioxide."

Dingell is concerned that Bush's administration may decide to set the standard that guarantees would apply to 80% of a project's debt, instead of total capital cost. He thinks that this may lead to less interest in clean technology from investors.

"Once a few of these pioneering projects demonstrate success, the risk for similar, follow-on projects will be reduced. The key is to get the first ones financed, built and operated as soon as possible."

Further information

House Committee on Energy and Commerce
The Library of Congress

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