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"Kolevar, Kevin" <Kevln.Kolevar@hq.doe.gov>
(;;zs~C:!5Y 03/26/2002 03:30:24 PM

. Record Type: Record

To: Phil Cooney/CEQ/EOP@EOP

cc:
SUbject: FW: AEP meeting with Frank Blake on Sequestration Research Propos al

Phil, here Is the view as It comes from the trenches.

Kevin

--Original Message--
From: Rudlns, George
Sent: Tuesday, March 26, 2002 11 :41 AM
To: Kolevar, Kevin
Cc: McCutcheon, John; Carter, Douglas
Subject: RE: AEP meeting with Frank Blake on Sequestration Research
Proposal

Yes, AEP is very interested in retrofitting their Mountaineer Pulverized

Coal Power Plant with a C02 scrubber and capturing most of the C02 generated
by the plant. They would then sequester the C02 in nearby underground
locations to verify the technical feasibility of long term underground
storage of C02. If leakage or migration of the C02 occurred they would
investigate ways of preventing the migration or leakage. This can only be
verified at fairly large scale-sufficient scale to adequately stress the
underground sequestration sites over an extended period of time. As a result
such a project would be very costly (over $100 million-in fact, I believe
their estimate was $500 million). Because this Is an advanced research
project rather than a commercial demonstration they indicated they would
need the Federal Government to fund approximately 80% of the cost. As part
of the project they would also test/evaluate a variety of C02 capture
technologies. There are two FE budget categories under which such a project
could be funded. One is Sequestration Research; the other is the Clean Coal
Power Initiative(CCPI). The Sequestration Research budget in FY02 is a
little over $30 million; the FY03 request Is roughly $50 million--not enough
of a budget to even consider such a project. The CCPI program has sufficient
funding but requires 50% cost sharing and AEP has indicated that it could
not come up with 50% cost sharing for an advanced research project, which
this is. AEP had a meeting at CEQ that was reportedly very positive
according to the reports I received (see attachment). I was told by AEP that
there meeting with Frank Blake was very positive and that he thought the
project had a lot of merit. It appears to be a very good but very costly
project.

----Original Message----
From: Kolevar, Kevin
Sent: Tuesday, March 26, 2002 9:11 AM

CEQ 009155
To: Carter, Douglas; Rudins, George
Cc: Kripowicz, Robert
Subject: RE: AEP meeting with Frank Blake on Sequestration Research Proposal

Thanks, Bob. Doug/George is this familiar to you?

Kevin

-----Orlginal Message--
From: Kripowicz, Robert
Sent: Tuesday, March 26, 2002 7:20 AM
To: Kolevar, Kevin
Cc: Carter, Douglas; Rudins, George
Subject: RE: AEP meeting with Frank'Blake on Sequestration Research
Proposal

I was not in on the meeting. I know that Fossil Energy Is considering

regional US centers utilizing the same principles. An international center
could have the same kind of benefits. Doug Carter,who works for George
Rudins oversees the planning group for sequestration in Fossil.

Bob

--Original Message--
From: Kolevar, Kevin
Sent: Monday, March 25, 2002 3:57 PM
To: Krlpowicz, Robert
SUbject: FW: AEP meeting with Frank Blake on Sequestration Research
Proposal

Bob, does this ring any bells with you?

Kevin

--Original Message--
From: PhILCooney@ceq.eop.gov [mailto:Phil_Cooney@ceq.eop.gov]
Sent: Sunday, March 24, 2002 10:49 AM
To: Kevin.kolevar@hq.doe.gov
Cc: Kameran_L._Bailey@ceq.eop.gov; panastas@ostp.eop.gov
Subject: AEP meeting with Frank Blake on Sequestration Research Proposal

Kevin, APE and Batelle came and paid us a joint visit last month on the
heels of
havelng met with Frank on a new joint research project they are proposing
with
DOE: "Creating an International C02 Capture and Geologic Disposal
Experimental
Facility." Would you provide any feedback within DOE on the
feasibility/desirability of this proposed project? Thanks, Phil

CEQ 009156
 .,
i
/

ILJ -
att1.hlm

ILJ -
aep.txt

CEQ 009157