The school said the National Energy Technology Laboratory, part of the DOE’s Office of Fossil Energy, selected the school’s Centre for Applied Energy Research for the landmark three-year project.

The group said its work would potentially reduce the cost of pollution prevention, as it was hoping it would eventually be able to present commercial applications that boost coal-based electricity.

“Technologies for carbon capture, utilisation and storage will be crucial in sustaining coal as a viable fuel under increasing carbon constraints," CAER director Rodney Andrews said.

"The technology is feasible, but it is not yet ready for full-scale implementation. That's why this project is so important.”

The announcement comes just days after the US Environmental Protection Agency released proposed outlines that will significantly cut the level of emissions from new power facilities.

Additionally, the DOE has a goal of making carbon emissions technology available by 2020 that can achieve a 90% capture rate in carbon dioxide at a cost of $40 per metric ton captured.

“A major cost associated with commercial carbon dioxide capture is the size of the ‘scrubber’ needed to handle the volume of flue gas produced by a power plant,” officials said.

“CAER has developed a catalyst to speed up the absorption rate of the solvent used, so the scrubber can be much smaller.

“Overall, the CAER technology could reduce the cost of carbon dioxide capture by 56%, compared to the current DOE reference case.”

The group’s R&D will ultimately enable efficient and cost-effective implementation of carbon capture in the generation sector and also allow domestic and international access to safe, reliable, and affordable fossil fuel energy.

“These essential factors of production, in turn, have and will continue to drive industrial growth, raising personal incomes, higher standards of living, and an improved quality of life," Andrews said.

Kentucky has consistently ranked among the top five coal producing US states, though the state has been hit hard by weak demand and a drop in natural gas prices. Strict federal guidelines have also played a role in a significant cut to production and workforce numbers statewide.

In fact, according to the Kentucky Energy and Environment Cabinet, eastern Kentucky alone lost 4000 mining jobs last year.

That bleak picture was made worse last week with the announcement James River Coal would send 525 of its full-time workers at mines in five eastern Kentucky counties to the unemployment line.

The DOE's investment is $2,966,957, in addition to cost share of $242,615 from UK and $499,675 from industry research consortium the Carbon Management Research Group.

CAER associate director for research Kunlei Liu will serve as the university’s principal investigator.

Kentucky Coal Association president Bill Bissett told a local paper the research had potential.

“These funds will hopefully move carbon-capture technology from the laboratory to reality,” he said.

“Private and public funding related to the use of coal is always good news. But we remain concerned that federal regulators continue to use what exists in the laboratory and not in the real world to put restrictions on coal-fired plants.”