Mr. Chairman, thank you for holding this hearing today on clean coal technologies.

 

In the United States alone, coal fired power plants satisfy more than half of the nation’s energy needs and this percentage is likely to increase in the future.  Coal is both abundant, inexpensive, and represents one of our most important natural resources. 

 

It is a stable commodity and a key component in satisfying the United States’ growing energy demands.  Coal production is an important element to our national security.  Without it, we would be increasingly reliant on unstable or unfriendly nations for our energy needs. 

 

Most people don’t realize that half the coal in the U.S. is located in Alaska.  Access to it is denied because of a provision that was placed in federal law back in the days when the projection was that we were entering into a new ice age.  The decision was made to prohibit the extraction of coal in Alaska unless the original contour of the land was restored.  But if you take out the coal you have to melt the ice, and if you melt the ice it is hard to replace the act of God and freeze it back so you have the same elevation and the same contours.  We haven’t had a new coal operation in Alaska for a long time.

 

Continued reliance on imported energy from volatile regions of the world is not a solution.  We must increase our domestic production in order to remain globally competitive and we must do so in an environmentally responsible manner.  New technologies to make this possible are on the horizon.  Carbon capture and sequestration is just one of many processes already in development.  Ground breaking research is being conducted to develop new ways to burn coal in order to maximize energy yield and employ cleaner and more efficient processes.    

 

One of these processes, which we will hear about today, is called Integrated Gasification Combined Cycle or IGCC.  The IGCC process is a promising new technology which has the potential to increase efficiency by 40%.  However, this process is not conducive to all regions because of its limitations on the type of coal which can be used.  Solutions must be found that will accommodate these differences and we must continue to research and develop other methods.

 

In my State, Agrium Incorporated is developing coal gasification at its Nikiski fertilizer plant.  This process would allow the plant to switch from natural gas to coal as a chemical feedstock.  This coal gasification project will allow Agrium to not only produce the fertilizer and ammonia currently in production but also clean diesel fuel.  In addition, the excess energy produced by this project, estimated at 75 megawatts, could be injected into the existing power grid of the surrounding community.  Agrium is also evaluating carbon sequestration, which can be utilized in existing oil and gas fields to yield additional energy supplies.

 

Like many of the alternative energy technologies currently in development, no one single solution will solve the problem of meeting energy needs in a responsible manner.  However, we should continue to explore the benefits clean coal can continue to offer our economy.  I look forward to hearing our witnesses’ testimony and their response and their insight into how we can achieve this goal.