Prepared Remarks for Secretary Bodman
Thank you, Mayor Dyer. I'm glad to be here for this historic groundbreaking. I'm pleased that Vic Der, D.O.E. (DOE) Deputy Assistant Secretary for Clean Coal, is also here today, along with David Ratcliffe, Chairman, President, and CEO of Southern Company. I'd also like to acknowledge Mayor Dyer and Senator Martinez and thank them for their support of this important effort.
I want to thank Southern Company for their commitment in partnership with DOE, as well as the Orlando Utilities Commission and Kellogg, Brown and Root to develop one of the cleanest coal-fired power plants in the world. Southern Company is truly a pioneer this plant joins only 2 others nationally and D.O.E. is very proud to be a partner on this project. With the ground we break today, we enter a new age of energy and environmental security for America and for the world.
This is one of 4 plans selected under the President's Clean Coal Power Initiative, a $2 billion, 10 year effort to advance technologies that can help meet the Nation's growing demand for low-cost electricity while reducing carbon emissions that contribute to global climate change concerns.
As you all know, integrated gasification combined cycle (IGCC) technology is considered one of today's environmentally preferred sources of electricity from coal. The system Southern Company and its partners are developing will add advanced emission controls to make it one of the cleanest, most energy efficient coal power plants built to date.
In addition, the technology to be used here in Orlando is unique in that it will use low-rank, high-moisture, and high-ash content coals at lower costs. These coals, which include lignite and sub-bituminous coals, make up half of the proven reserves in the U.S. and the world. By harnessing our coal resources in a cost-effective and environmentally sound manner, future generations should be able to use this clean, safe energy source.
No one would deny that energy demand in the U.S. and worldwide is rapidly accelerating. Electricity demand is projected to be particularly steep, with U.S. demand expected to increase by about 50 percent by 2030 and global demand expected to nearly double.
While we are aggressively exploring alternative and renewable energy sources to help meet this demand, we cannot deny the crucial role that traditional fossil fuels in particular coal will continue to play in supplying global energy needs.
Our challenge is to develop ways to use these fossil fuels in an environmentally responsible way. That is why President Bush has made clean coal technology a high priority committing billions of dollars to fund clean coal plans through every step of the process. D.O.E. is fulfilling that commitment in a variety of ways.
Through the Clean Coal Power Initiative, D.O.E. has fostered partnerships between government and industry to support the development of advanced new clean coal technologies on a demonstration scale. We are supporting Carbon Sequestration Regional Partnerships to validate the safety and affordability of large-scale, long-term carbon storage.
And these cost-share arrangements are not all that the federal government is doing to promote the deployment of clean coal technology. Along with the Treasury Department, D.O.E. has already made accessible $1 billion in federal tax incentives to bring about rapid deployment of advanced coal-based power generation and gasification technologies. In a 2nd round of tax incentives scheduled for next year we will make accessible an additional $650 million.
Moreover, the Department also anticipates having accessible up to $13 billion to guarantee loans for clean energy plans like advanced fossil plants that avoid, reduce or sequester greenhouse gas emissions.
As in so many areas, I believe the combination of government incentives and private sector innovation will harness America's technological strength to ensure clean, secure, affordable, and reliable energy.
Through these programs, we are promoting the development of advanced coal technology plans that harness greater efficiency while either eliminating or slowing the growth of greenhouse gas emissions.
With your continued support, we can build on these successes and ensure that coal will be an environmentally-safe and plentiful source of energy for the U.S. and the world well into the future. Thank you.
