In August 2004, AEP announced its intentions to construct an Integrated Gasification Combined Cycle (IGCC) power plant. The company identified three potential sites in Ohio, West Virginia and Kentucky. The company could not, however, obtain support from regulators and legislators in Ohio, West Virginia and Virginia (the West Virginia plant also would serve customers in Virginia). Without reasonable assurance of cost recovery, AEP ultimately determined that it could not make the massive investments needed to build this technology, especially when cash flow is tight and access to credit is difficult and expensive. The project was set aside indefinitely.
IGCC is a clean coal technology that turns coal into a gas, and then removes impurities from the coal gas before it is combusted. This results in lower emissions of sulfur dioxide, particulates and mercury. It also results in improved efficiency compared to conventional pulverized coal. Because coal is America's most abundant energy source, the environmental benefits of this technology are strategically important to AEP, as well as the nation.
AEP still believes that IGCC technology may have a role in the future generation of electricity in the U.S., but AEP will not be an active participant in its development in the near future.
