Energy Secretary and Secretary of the Treasury Announce the Award of $1 Billion in Tax Credits to Promote Clean Coal Power Generation and Gasification Technologies

First Round of Credits Will Help Spur Rapid Deployment of Gasification Technologies

WASHINGTON, DC —U.S. Department of Energy (DOE) Samuel W. Bodman and Secretary of the Treasury Henry Paulson today announced the awarding of $1 billion in federal tax incentives to nine companies to bring about rapid deployment of advanced coal-based power generation and gasification technologies. The technological improvements will bring us closer to the next step in the development of near-zero emission power plants.  Secretary Bodman made the announcement in remarks at the National Coal Council's Annual Fall meeting, in Washington , DC .

“There is more energy available in U.S. coal than in nearly all of the oil in the world, and these tax credits will help us find ways to use coal in an environmentally sensitive way,”  Secretary Bodman said   "The combination of government incentives and private sector innovation will harness America's technological strength to ensure clean, secure, affordable, and reliable energy.”

The Energy Policy Act of 2005 (EPAct) authorized the Department of Treasury to provide tax credits as incentives to move advanced technologies to the marketplace.  EPAct focuses on clean energy, efficient energy use, energy conservation, and advanced technologies.

Advanced coal technologies face cost, integration and reliability hurdles that must be overcome if they are to be widely deployed.  DOE believes deployment incentives, such as tax credits, will accelerate the widespread use of these technologies and assist in driving down their overall cost.

The coal technologies fall under two different tax credit programs: One for Qualifying Advanced Coal Projects and another for Qualifying Gasification Projects.  Congressional authorizations included a total of $1.65 billion in tax credits to spur investment in the advanced clean coal facilities, including $350 million in tax credits for advanced gasification projects.

Initially, a total of 49 applications were received.  DOE analyzed the proposed projects for technical and economic feasibility and for consistency with energy policy goals.  DOE then passed along this data to the Internal Revenue Service, who made the tax credit certifications.

The first round of tax incentive winners, who chose to have their selection acknowledged publicly, are: