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Title: Texas Clean Energy Project: Decision Point Application, Section 2: Topical Report - Phase 1, February 2010-October 2013

Summit Texas Clean Energy, LLC (STCE) is developing the Texas Clean Energy Project (TCEP or the Project) to be located near Penwell, Texas. The TCEP will include an Integrated Gasification Combined Cycle (IGCC) power plant with a nameplate capacity of 400 megawatts electric (MWe), combined with the production of urea fertilizer and the capture, utilization and storage of carbon dioxide (CO2) sold commercially for regional use in enhanced oil recovery (EOR) in the Permian Basin of west Texas. The TCEP will utilize coal gasification technology to convert Powder River Basin subbituminous coal delivered by rail from Wyoming into a synthetic gas (syngas) that will be cleaned and further treated so that at least 90 percent of the overall carbon entering the IGCC facility will be captured. The clean syngas will then be divided into two highhydrogen (H2) concentration streams, one of which will be combusted as a fuel in a combined cycle power block for power generation and the other converted into urea fertilizer for commercial sale. The captured CO2 will be divided into two streams: one will be used in producing the urea fertilizer and the other will be compressed for transport by pipeline for offsite use in EORmore » and permanent underground sequestration. The TCEP was selected by the U.S. Department of Energy (DOE) Office of Fossil Energy (FE) for cost-shared co-funded financial assistance under Round 3 of its Clean Coal Power Initiative (CCPI). A portion of this financial assistance was budgeted and provided for initial development, permitting and design activities. STCE and the DOE executed a Cooperative Agreement dated January 29, 2010, which defined the objectives of the Project for all phases. During Phase 1, STCE conducted and completed all objectives defined in the initial development, permitting and design portions of the Cooperative Agreement. This topical report summarizes all work associated with the project objectives, and additional work required to complete the financing of the Project. In general, STCE completed project definition, a front-end, engineering and design study (FEED), applied for and received its Record of Decision (ROD) associated with the NEPA requirements summarized in a detailed Environmental Impact Statement. A topical report covering the results of the FEED is the subject of a separate report submitted to the DOE on January 26, 2012. References to the FEED report are contained herein. In August 2013, STCE executed fixed-price turnkey EPC contracts and previously, in December 2011 a long-term O&M agreement, with industry-leading contractors. Other work completed during Phase 1 includes execution of all commercial input and offtake agreements required for project financing. STCE negotiated long-term agreements for power, CO2 and urea offtake. A contract for the purchase of coal feedstock from Cloud Peak Energy’s Cordero Rojo mine was executed, as well as necessary agreements (supplementing the tariff) with the Union Pacific Railroad (UPRR) for delivery of the coal to the TCEP site. STCE executed firm agreements for natural gas transportation with ONEOK for long-term water supply with a private landowner. In addition, STCE secured options for critical easements and rights-of-way, completed and updated a transmission study, executed an interconnection agreement and has agreed a target October 31, 2013 financial closing date with debt and conventional and tax equity.« less
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Summit Texas Clean Energy, Llc
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United States