Clean coal project in Texas signs EPC contracts

Summit Power Group has signed $2 billion in engineering, procurement and construction contracts that will reportedly guarantee the price of building a proposed $2.8 billion, 400 MW coal-fired power plant with carbon capture technology in Texas.

According to Platts, Summit said it signed an EPC contract with Selas Fluid Processing, a unit of German-based The Linde Group, and with Korea-based SK E&C, to build a chemical block capable of producing synthetic gas by gasifying Power River Basin coal and capturing up to 90 percent of the carbon dioxide (CO2) and compressing it for sale. The second EPC contract is with Siemens Energy (NYSE: SI), which will build a 400 MW combined-cycle power plant that will run on syngas and natural gas.

A separate 15-year contract was signed with Linde to maintain and operate the site in Texas, the article said.

The U.S. Department of Energy awarded $450 million to the project under the department’s Clean Coal Power Initiative. Summit also signed a 25-year deal to sell 200 MW of output to CPS Energy, and has a contract to sell CO2 for use in enhanced oil recovery, and sell urea to a fertilizer producer.

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