ConocoPhillips, Excelsior Energy agree on coal gasification facility

By OGJ editors

HOUSTON, June 14 -- Excelsior Energy Inc., Wayzata, Minn., and ConocoPhillips have signed a development and technology licensing agreement for an integrated gasification combined cycle facility to be built on the Iron Range in northeastern Minnesota.

The first unit of Excelsior's Mesaba energy project will have a net output capacity of 532 Mw of electricity project and will feature ConocoPhillips' E-gas technology, which converts coal, petroleum coke, and other low-grade feedstocks into synthesis gas containing hydrogen and removes most pollutant-forming impurities, including mercury from coal. The Mesaba project will further refine the technology, possibly utilizing an advanced combustion turbine with other process units in the facility. It is expected to be operational in 2010.

In response to the US Department of Energy's Clean Coal Power Initiative solicitation, Excelsior Energy said it would request as much as $150 million to accelerate these enhancements.

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