IEEFA Report: Costly and Unreliable, Two Multibillion-Dollar American Coal-Gasification Experiments Prove the Case Against Such Projects
Sept. 7, 2017 (IEEFA.org) — The Institute for Energy Economics and Financial Analysis (IEEFA) published a report describing how coal-to-gasification technology for electricity-generation purposes remains commercially unviable.
The report—“Using Coal Gasification to Generate Electricity: A Multibillion-Dollar Failure”—concludes that two long-running marquee American Integrated Gasification Combined Cycle (IGCC), projects, Duke Energy’s Edwardsport plant in Indiana and Southern Company’s Kemper plant in Mississippi, prove the case against such investments.
“Efforts to gasify coal for power generation have been major failures, technologically and financially,” writes David Schlissel, the author of the report and IEEFA’s director of Resource Planning Analysis. “Both Kemper and Edwardsport have been economic disasters for consumers and investors alike, and a number of important and painful lessons have emerged from Kemper and Edwardsport.”
The report concludes further that coal-gasification technology is an especially poor bet today given the declining costs of solar and wind resources and the expectation that natural gas prices will remain low for the foreseeable future.