The DOE announced that the Taylorville Project has been selected to receive an offer of a loan guarantee. The DOE sent a notice of “Selection to Proceed with Due Diligence and Negotiation Leading to a Conditional Commitment” to Tenaska executives. The value of the commitment is $2.579 billion and the project estimated total installed cost (TIC) is $3.5 billion.
This is terrific news for Tenaska as well as the end users of the electricity that will be provided by the facility. The application process for the DOE solicitation is rigorous. Tenaska is the first applicant that the DOE offered a loan guarantee. This should be considered an indicator that the project has solid execution plan and a good economic model, because the projects are in a competitive situation. The DOE is reviewing each application and evaluating them on several factors to select the best projects.
The Taylorville plant will gasify coal and capture CO2. The emissions will be comparable to a natural gas fired plant. This plant design is based on “clean coal technology” – coal gasification.
Related news:
Burns & McDonnell Selected For Taylorville Energy FEED
Deadline for DOE Phase Two Applications Is Here
Applications For DOE Loan Guarantees Are Turned In
