Mississippi Power Seeks Approval to Build Syngas Plant

Energy Resource, Jan 16, 2009

ENERGY RESOURCE-16 January 2009-Mississippi Power Seeks Approval to Build Syngas Plant(C)2009 JeraOne - http://www.jeraone.com

Mississippi Power is seeking approval from the Mississippi Public Service Commission (MPSC) to build a 582-megawatt Integrated Gasification Combined Cycle (IGCC) power plant in Kemper County.

The plant represents the first advanced gasification generating facility with carbon capture capabilities in Mississippi, and one of the first in the country. IGCC is a coal gasification plant that is integrated with a combined cycle power plant specifically designed to work with each other.

The Kemper County IGCC Project, estimated to cost approximately $2.2 billion, will be owned and operated by Mississippi Power and will serve the growing demand for electricity among Mississippi Power's customer base.

Pending MPSC approval, construction is expected to begin in 2010 with operational start-up of the facility expected by late 2013.

"This plant will diversify our fuel sources and will produce energy at lower and more stable costs than any other fossil fuel option," said Anthony Topazi, Mississippi Power president and chief executive officer. "By creating an additional fuel alternative -- Mississippi lignite -- this project creates significant energy cost reductions for our customers, such that over its life, the energy savings more than offset the cost of building the plant."

Mississippi lignite is an affordable, abundant natural resource that is largely unused. The proposed plant will use lignite coal that will be mined locally in Kemper County.

"We have studied the fuel sources and generation resource options available to us, and have determined that the IGCC technology, using locally mined Mississippi lignite, is the best option to provide affordable and environmentally responsible electricity for our customers' growing needs," said Topazi. "The other benefits to the State of Mississippi are numerous including new jobs, new tax revenues, development of Mississippi lignite as a dependable and stable fuel source, and an additional source of carbon dioxide for enhanced oil recovery in the state."

Topazi noted that along with IGCC technology, a diverse portfolio of generation resources such as renewable biomass, and energy efficiency and conservation initiatives, all play a crucial role in meeting customers' rising electricity needs.

Mississippi Power expects the Kemper County IGCC project to create approximately 260 new permanent jobs from the plant and mine operations, plus 1,000 jobs during peak construction. Revenue from the project will enhance local schools, lower property taxes, and help equip first responders.

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