Area of Interest 2: Novel SNG/Electricity Co-Production Processes

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Area of Interest 2: Novel SNG/Electricity Co-Production Processes: NOTE: Please read the Master Funding Opportunity Announcement for application preparation instructions. The objective of this topic is to solicit Research and Development (R D) proposals to focus on technologies capable of co-production of substitute natural gas (SNG), electricity, and other products while also achieving near-zero emissions of pollutants and capturing and sequestering carbon dioxide. Rising natural gas costs coupled with potential supply uncertainties has caused numerous problems in both the utility as well as the industrial sectors in the U.S. Many utilities have either been shut off from natural gas supplies for their natural gas-fired gas turbines, resulting in existing units being shut down, or are considering fuel switching because of high natural gas prices. In the industrial sector, rising natural gas prices have had a negative affect on its balance of trade and has forced many companies to close domestic facilities and export production to places having lower feedstock costs. As natural gas will continue to play a major role in the domestic economy of the U.S. for years to come, the DOE is interested in developing novel coal gasification processes that co-produce synthetic natural gas, electricity, and other products, as a means to reduce potential dependence on foreign natural gas and to maintain the U.S. manufacturing base. The overall process benefit description must include: 1) the assumed cost of natural gas and other products, perhaps varying over time, 2) justification that the process is economically competitive with natural gas, and 3) the expected scale of the commercial co-production plant and why this plant size is the most economical. The overall size of the gasification-based co-production plant shall be no smaller than 100 MWe equivalent in output. The process developed should approach the goal to achieve a SNG cost of less than $5/MMBtu. (Estimated total available funds = up to $6,000,000 for Phases I and II, up to two projects, three to four years duration; up to $6,000,000 for Phase III, one project, two to three years duration)