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FOR IMMEDIATE RELEASE:
June 10, 2008

GOVERNOR PATERSON ANNOUNCES SUPPORT FOR NEW ADVANCED COAL POWER PLANT FOR JAMESTOWN – FIRST OF ITS KIND IN THE WORLD

Project Could Diversify State’s Energy Supply and Create “Clean-Tech” Jobs Upstate

Advanced Coal Development Follows Most Aggressive Efficiency and Renewable Targets in the Nation


Governor David A. Paterson today visited Chautauqua County in Western New York to announce State support for an advanced coal power plant in Jamestown. Advanced coal technology could represent the next major step in addressing global climate change while also helping to diversify the state’s energy supply and create “clean-tech” jobs Upstate.

The plant – which would be the first of its kind in the world – will serve as a demonstration facility for a promising new technology that captures carbon dioxide (CO2) and sequesters it underground for permanent storage. This research holds the potential to give New York firms the ability to launch exports of advanced coal technology to the rest of the world.

New York State is spearheading the project to determine if carbon capture and sequestration (“CCS”) is viable, providing another example of New York’s leadership in responding to both the growing energy needs and the threat of global climate change. If sequestration works in New York’s geology, CCS technology could help New York meet its own energy needs using a domestic fuel, and spur economic development and clean tech jobs, particularly Upstate where leading companies of CCS technology reside and where the geology is considered favorable for sequestration.

“There is no silver bullet to solving the twin threats of climate change and growing energy demand, and New York should have a comprehensive strategy to address both,” said Governor Paterson. “As a state and a nation we need to be less dependent on foreign energy supplies. China is building one new, uncontrolled coal plant every week. Therefore, we must act immediately to find ways to generate electricity, use energy wisely maintain energy diversity and create jobs locally. This comprehensive strategy has the potential to drive technology and innovation, improve our energy security, reduce energy price volatility, and create clean-tech jobs throughout the State, particularly Upstate.”

The research on advanced coal will be conducted by the Oxy-Coal Alliance, which is made up of: Praxair, Dresser-Rand, E&E, Ecology and Environment, Foster Wheeler, Battelle Labs, SUNY Buffalo and AES Corporation. Following the Oxy-Coal Alliance's research, the group will apply for a federal grant to continue research and development of the proposed Jamestown power plant. Grant notification is expected by the middle of 2009.

If coal can be used in a way that reduces adverse environmental impacts – which is the promise of advanced coal technology combined with CCS – then the State can reap the energy benefits of coal and avoid many of the environmental risks.

The new strategy for advanced coal development includes:

  • Qualified financial support of up to $6 million for the “New York Oxy-Coal Alliance” – an advanced coal demonstration project involving CCS capability in Jamestown.
  • The formation of a Carbon Capture and Sequestration Working Group.
  • Research and development funding from the New York State Energy Research and Development Authority (NYSERDA). The new initiative is detailed in the attached fact sheet.

Charles McConnell, Vice President of Gasification and Oxy-Coal Technology at Praxair, Inc., a member of the Oxy-Coal Alliance, said: “This is an excellent opportunity to demonstrate new, world-class technology right in our own community. Demonstration projects are fundamental to building a road map to commercial implementation of carbon dioxide capture technology in the future.”

Senator Charles Schumer said: “Governor Paterson's decision to support the development of an advanced coal power plant in Jamestown is a knockout win for both Western New York and the country. First, this one-of-a-kind power plant propels Jamestown and Upstate to the forefront of energy innovation, when the sky-high price of oil shows we must diversify our energy supply. Second, the plant's cutting-edge technology will enable Western New York to become a major player in our nation’s ramped-up fight against global climate change. Third, this move will stimulate Upstate economic development, creating good-paying ‘clean-tech’ jobs.”

Senator Catharine Young said: “This clean oxy-coal plant could very well turn out to be Western New York's most significant economic breakthrough in decades. This first-ever oxy-coal plant will protect Jamestown's existing manufacturing jobs by preserving reliable, low-cost energy. It will generate hundreds, if not eventually thousands, of new, good-paying jobs in high tech, manufacturing and construction. And most importantly, it will give the people of Jamestown cleaner air to breathe. I can't think of a smarter investment in our future. Governor Paterson has clearly demonstrated his commitment to revitalizing our upstate economy by advancing this project.”

Assemblymember William L. Parment said: "This is great news for Chautauqua County. I look forward to working with the City of Jamestown and Governor Paterson to make the new BPU plant a success.”

Jamestown Mayor Sam Teresi said: "It's been said before that the future belongs to those who choose to innovate and lead. And through this exciting project, the Great Empire State and the City of Jamestown are once again out in front of the pack and moving forward. I would like to thank Governor Paterson for his commitment and leadership with this landmark energy and environmental initiative."

Joe Brown, Business Manager of Boilermakers Local 7 said: "Today's announcement is a major step forward to bring this new clean coal plant to fruition. Being one of the predominant crafts on site we will employ over one hundred people for two and a half years, a huge economic impact for the community. I’d like to thank the Governor’s office for their effort in putting New York State at the forefront of the newest technology to help address climate change."

Greg Wolf, Assistant Business Manager for IBEW Local 459 said: “Anytime good jobs can be protected and new ones can be created it is great for labor, the community and society as a whole. It is encouraging, from labor’s perspective, that the state of New York and its elected officials are doing everything possible to move this cutting edge technology forward.”

Harvey Stenger, Dean of the School of Engineering and Applied Sciences at the University at Buffalo said: "Using pure oxygen to burn coal is one of the most cost effective ways of avoiding the impending climate changes associated with the accumulation of carbon dioxide in our atmosphere. Producing pure oxygen from air is a process developed and refined at Praxair. Using it to combust coal, our nation's most plentiful energy resource, is a technology that once refined by Praxair and its partners, will allow us to capture and sequester almost all of the carbon dioxide emitted when coal is burned."

By helping to develop technologies that can be deployed in developing countries like China, New York can have a significant impact in mitigating global climate change, while creating jobs at home and fostering the export of technology to the rest of the world.

New York is the lead state in the Regional Greenhouse Gas Initiative (RGGI), the nation’s first viable carbon cap-and-trade system, already making it a global leader in carbon market development. New York is also a leader in renewable energy production with a Renewable Portfolio Standard that ensures New Yorkers will obtain 25 percent of their electricity from renewable sources by 2013. Furthermore, with New York’s “15 by 15” initiative – the nation’s most aggressive energy efficiency goal which calls for a 15% reduction in energy use below projected levels by 2015 – New York is a national leader in energy efficiency.

Fact Sheet

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