U.S. Department of Energy selected Hydrogen Energy International LLC for $308 million in funding from the American Recovery and Reinvestment Act. The project is a joint venture between BP and Rio Tinto.

This is part of the third round of the Clean Coal Power Initiative (CCPI). The initiative was made possible by President Bush when he signed the 2005 Energy Act and is designed to increase investment in low-emission coal technology by demonstrating advanced coal-based, power generation technologies. The goal of CCPI is to accelerate the readiness of advanced coal technologies for commercial deployment, ensuring that the United States has clean, reliable, and affordable electricity and power.

Hydrogen Energy International is a BP Alternative Energy and Rio Tinto joint venture. The companies will design, construct, and operate an integrated gasification combined cycle power plant that will take blends of coal and petroleum coke, combined with non-potable water, and convert them into hydrogen and CO2. The CO2 will be separated from the hydrogen using the methanol-based Rectisol process. The hydrogen gas will be used to fuel a power station, and the CO2 will be transported by pipeline to nearby oil reservoirs where it will be injected for storage and used for enhanced oil recovery. The project will be located in Kern County, California and will capture more than 2,000,000 tons per year of CO2.

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Rio Tinto Sets Sights on Monetizing Coal With Gasification

Rio Tinto is the leading international mining company headquartered in the UK. It combines Rio Tinto plc, a London public listed company, with Rio Tinto Limited, a company listed on the Australian stock exchange. The Rio Tinto company finds, mines and processes the earth’s mineral resources. The focus is on metals and minerals that are essential for making thousands of everyday products. The major products include aluminum, copper, diamonds, coal, gold, uranium, iron ore and other products.

Rio Tinto has recognized the important opportunity for sustainable development through the gasification of coal for energy and liquid products. Tom Albanese, Chief Investment Officer for Rio Tinto, said “Coal is a key part of Rio Tinto’s energy business and we believe it has an essential role in generating clean power in the future.” Rio Tinto has joined with BP to form Hydrogen Energy for the purpose of accomplishing the goal of developing coal gasification plants and creating clean power. Rio Tinto made a cash investment of $32 million towards the joint venture.

The new venture, Hydrogen Energy, will be headquartered in Weybridge. Both companies will provide employees for staffing the company. The initial headcount is expected to be approximately 75 employees.