FutureGen picks Illinois location
Source: The Eagle, by APRIL AVISON
December 20, 2007
Two years of work to recruit a $1.5 billion FutureGen coal plant to the Brazos Valley came to an end Tuesday morning when federal officials announced the facility would be built in Mattoon, Ill.
Local officials said they were disappointed but positive because the 400-acre site in Jewett that they prepared for the project is primed for another industrial business -- and the fact that a tiny town in Leon County was a finalist for FutureGen put the region on the map.
The Jewett site was one of four finalists for the project, along with Odessa, and Mattoon and Tuscola, Ill. Securing the plant translates to an economic impact of more than $1 billion, 1,300 jobs during a four-year construction period, 150 permanent jobs and roughly 1,200 new jobs created by spinoff development.
FutureGen, scheduled to become operational in 2012, is the first facility in the world designed to trap carbon dioxide and inject it into the ground, providing a clean process for turning coal into hydrogen-rich gas. Now that the Jewett site has cleared an extensive environmen-tal study process, it's ready for another similar project, officials said Tuesday.
More than 50 people -- including Bryan and College Station city council members, county judges from throughout the Brazos Valley and Texas A&M University System Chancellor Mike McKinney -- attended a gathering at the Brazos Valley Council of Governments on Tuesday morning to hear the site announcement.
As the notice was given via webcast from Washington, D.C., some community leaders bowed their heads in disappointment. An official with the national FutureGen Alliance appeared on the webcast -- projected on a screen in a Council of Governments conference room -- and began to talk about the benefits of building the project in Mattoon.
Council of Governments Executive Director Tom Wilkinson lowered the volume.
"Do ya'll want to sit through that part?" he said with a laugh.
The next step
The Brazos Valley Council of Governments first offered in 2005 a 100-acre site between Buffalo and Jewett as a possible location for the FutureGen project. The Heart of Texas Council of Governments at that time was pitching a site in the Mexia oil fields.
As officials with the FutureGen Alliance -- a partnership between the U.S. Department of Energy and several private companies -- drove from one site to the other, they passed the area north of Jewett on Texas 39, adjacent to the NRG Energy Inc. lignite coal mine.
"They saw NRG's facility and said, 'We think your site is here,'" Wilkinson said Tuesday. "The rest is history."
A local partnership was launched, involving the Leon, Limestone and Freestone county judges, officials with the state geologist's office, the Heart of Texas Council of Governments and numerous others, Wilkinson said.
NRG, which owns the land in Jewett, volunteered to donate it for the FutureGen project.
"We've proven we can muster a team across county lines and work on a big project," Wilkinson said. "We now know there's nothing too big."
Even Chancellor McKinney, who is from Leon County, got involved, recognizing the research opportunities for Texas A&M students that could be offered at the facility.
"I'm disappointed," the chancellor said after the announcement. "Leon County is home, so I was really hoping that's what they would choose. We still have the coal mines there, and we will continue to develop the site and do research there. We are still dedicated to the science."
Leon County Judge Byron Ryder said Tuesday that he expects representatives from private industries will be interested in the opportunities the Jewett site has to offer.
"All the prep work and environmental studies have been done," he said. "Normally, companies have to jump through hoops to get those things done. It's already done, and people have just seen Jewett on the Internet. Jewett's been talked about in boardrooms all over the world. It's not a secret anymore."
Charles Gilliland, a research economist at the Texas A&M University Real Estate Center, said the rural land is likely to garner widespread interest.
"For the past five years, land has been heavily in demand, largely for investment purposes, driving prices up dramatically," Gilliland said. "Land prices statewide have doubled since 2002. Since it has been named as a [FutureGen] site, it's possible that other similar companies might be interested in it. It probably would not be difficult to sell the property."
FutureGen project
More than 250 members of the media were logged into the FutureGen Alliance webcast Tuesday to hear where the plant would be built. It's the first of its kind in the world -- and has alliance members representing China, India, Korea and Japan.
In other words, officials said Tuesday, it's a pretty big deal.
Greg Walker, chairman of the FutureGen Alliance board of directors, said during the webcast the project probably will be replicated globally.
"FutureGen is important because energy, security and stable economies on a global scale are important," he said. "Advanced coal technology will have a key part in reducing carbon emissions while ensuring global economies continue to grow and remain stable, using the most abundant fuel source available today, which is coal."
The plant originally was estimated to cost $1 billion, but rising construction prices have elevated the price. Some reports show cost estimates up to $1.8 billion, but the FutureGen Alliance is estimating the cost at $1.5 billion.
Competition to attract the facility was steep, as 12 proposed sites in seven states were originally considered.
More than $260 million in cash and tax credits was offered by Texas if the plant was built at either the Odessa or the Jewett site. Illinois promised to contribute $80 million in grants, low-interest loans and tax breaks.
The Illinois site chosen for the project is on 444 acres of privately owned farmland about 180 miles south of Chicago.
Mike Mudd, CEO of the FutureGen Alliance, said during Tuesday's webcast that the four finalist sites each put forth strong bids.
"At the end of the day, the alliance chose the site that represents the best chance of success for the project," he said. "It was not based on politics."
Mudd said that the alliance's analysis on each of the sites would be posted Wednesday at www.futuregenalliance.org.
Wilkinson said Tuesday he was disheartened that Jewett won't be home to FutureGen. The Council of Governments director has spent time almost every day for the past two years working on the project.
But, Wilkinson said, he expects good things will happen at the Jewett location.
"FutureGen is the first plan for this site," he said. "It's not the last. It's not the only."
• April Avison's e-mail address is april.avison@theeagle.com.
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