Indiana Approves Coal Power Plant

John Davis

Duke EnergyIndiana utility regulators have given Duke Energy the go-ahead to construct a new clean coal power plant. The plant will be constructed in Edwardsport, IN.

If the project proceeds, it will be the first commercial-scale coal gasification power plant built in the United States in the last 10 years. The approximately 630-megawatt plant will use advanced integrated gasification combined cycle (IGCC) technology.

“In the Midwest, coal is plentiful and low-cost, and finding ways to burn it cleanly is fundamental to meeting our customers’ demand for power,” said Duke Energy Indiana President Jim Stanley. “The Edwardsport facility could very well be the cleanest coal-fired power plant in the world once it’s completed. It fits Indiana’s energy plan to turn homegrown natural resources into an economic engine and be self-reliant for power. It’s part of our overall plan to meet growing customer needs with cleaner coal technology, energy efficiency, and renewables.”

An air permit is still necessary from the Indiana Department of Environmental Management. If that permit is approved, Duke Energy could begin construction early next year and start producing power from the site by early 2012.

Duke Energy says construction of the plant will cost approximately $2 billion. More than $460 million will come from local, state and federal tax incentives. Duke says the plant will provide an average electric rate increase of approximately 16 percent phased in from 2008 through 2012.

Energy, Facilities, Production