The clean-coal power plant using IGCC technology planned for New Haven, West Virginia, with a price tag of $US2.23 billion, will become reality sooner rather than later “if appropriate regulatory approvals are obtained in West Virginia and Virginia without delays,” according to a Public Service Commission filing by the company.

Appalachian’s submission for West Virginia proposes “phased-in cost recovery” for the project to keep rate hikes minimised, and will file in Virginia in the coming weeks if all proceeds positively.

“With restrictions on carbon dioxide emissions expected in the future, IGCC technology represents an important advancement for power generation and for the coal industry,” company chairman Michael Morris said of the plant, which is expected to provide 629 megawatts of power.

“It's much less expensive to capture carbon dioxide pre-combustion in the gasification process than it is to capture it post-combustion from a pulverised coal plant.”

Morris said the complex, proposed for construction next to its existing Mountaineer plant, was a cost-efficient decision: “When we were the first to announce our intent to build a large, commercial IGCC plant, we anticipated the cost for IGCC would be 20 to 30 percent higher than for a new plant using pulverised coal technology.

“That range turned out to be accurate, but even with the cost premium we expect IGCC will be the least expensive option over the life of the plant.”

In addition to the West Virginia plant, AEP is also evaluating potential for an IGCC plant in Meigs County, Ohio, though that project is currently in a hold pattern.

“The Public Utilities Commission of Ohio granted approval to move forward with the Ohio project under provider of last resort provisions,” company officials noted.

“A challenge to the commission's authority to approve the project is currently going through the normal appellate process [and] the company is awaiting resolution of that challenge before continuing with the Ohio regulatory process.”