Clean Coal Technologies, Coal, Gas

Clean Coal Power Resources Inc. announces $4.5 billion Illinois gasification and power project

VANDALIA, Ill., Oct. 8, 2002 — Clean Coal Power Resources Inc. announced the start of a $4.5-billion economic development project to build and operate a coal gasification plant and 2400-MW power generating facility fueled by its own on-site underground coal mine.

The announcement followed an initial $250,000 payment made by the company Monday to Fayette County under terms of a 99-year coal mining lease executed August 13 between Clean Coal Power Resources (CCPR) and the County Board. The lease gives CCPR mining rights to some 159,000 acres of coal reserves totally an estimated 1.6 billion in-place tons.

Terrell L. Black, CCPR chief executive officer, said he expects to begin the permitting process for both the coal mine and the gasification and power plants by year’s end, with mine construction to begin sometime in 2003.

Coal mine construction will employ some 250 workers, he said, while some 4,000 construction workers will be needed to build the gasification and power plants. Permanent employment is estimated at some 1,600 people in both the mine and generating facilities.

Black said the firm’s Fayette County Project will be a cogeneration facility employing the latest commercially proven clean coal technology to generate electricity while also producing a valuable stream of synthetic fuels and chemicals.

When commercially operational, he said the entire facility will consume some 17 million tons of coal per year.

Power will be produced using integrated gasification combined-cycle (IGCC), an advanced technology that combines modern coal gasification with gas turbine and steam turbine power generation. IGCC is one of the most efficient and cleanest of available technologies for coal-based power generation, with emissions comparable to those of natural gas-based power production.

Black said the hydrocarbon distillates will be produced by the Fischer-Tropsch process developed in 1920s Germany and used extensively in recent years in South Africa. Six Fischer-Tropsch reactors will convert about half of the synthetic gas produced in the plant into 32,333 barrels of naphtha per day and 64,666 barrels of Fischer-Tropsch diesel fuel per day.

Both IGCC and the conversion of synthetic gas to liquid products have been demonstrated successfully under the Clean Coal Technology Program sponsored by the U.S. Department of Energy. This program is a multi-phased effort administered by the National Energy Technology Laboratory.

CCPR is a privately held Delaware corporation currently headquartered in Louisville, Ky. Black said the company plans to relocate to Fayette County in 2003.

Source: Clean Coal Power Resources Inc.