25 June 2009 — American Electric Power Co. and Southern Co.,are withdrawing from the FutureGen project, which is aimed at lowering carbon dioxide emissions from coal-fired power plants.
AEP will withdraw from the project July 1. Southern is withdrawing immediately.
AEP said it will spend some of the money previously earmarked for the investment on carbon capture and storage at its Mountaineer Plant in west Virginia.
Southern will focus on coal gasification at a power plant in Mississippi and a carbon research center in Alabama.
A planned coal fired FutureGen plant in Mattoon, Ill., would capture and bury 60 percent of its carbon emissions. The U.S. Energy Department expected that the 275 MW plant would get $1.1 billion in federal funding and as much as $600 million in industry support.
BHP Billiton Ltd., Peabody Energy Corp., Consol Energy Inc., E.ON AG, Anglo American PLC, Rio Tinto PLC, Foundation Coal Holdings Inc., a Xstrata PLC unit and China Huaneng Group are other companies involved in the FutureGen Alliance.