CPS Energy has announced a new Power Purchase Agreement with Summit Power, which is developing a new clean coal project in Texas. The Texas Clean Energy Project is an integrated combined cycle coal gasification (IGCC) plant that will incorporate carbon capture, utilization and storage technology.
Under the terms of the agreement, the new IGCC plant will provide 200 megawatts (MW) of electricity to CPS. The Texas Clean Energy Project will be sized to produce at least 400 MW gross output from the power island, according to Summit Power.
"Adding clean coal to our portfolio dovetails with our strategies to diversify and reduce the carbon intensity of the power we supply to our customers," CPS Energy CEO Doyle Beneby said in a statement.
The move to clean coal may help CPS Energy comply with the U.S. Environmental Protection Agency's stricter carbon emission rules, which aim to lower emissions by 30 percent compared to 2005 levels by 2030.
In addition to providing cleaner coal-fueled electricity for households in the ERCOT market, the plant will also use 90 percent of the carbon captured for enhanced oil recovery in the West Texas Permian Basin.
The Texas Clean Energy Project will be located approximately 15 miles away from Odessa, Texas. Commercial operation is scheduled for 2018.