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PLANS CANCELED FOR THREE U.S. CLEAN COAL PROJECTS

Dec. 31, 1990

Three proposed U.S. Clean Coal Technology demonstration projects have been dropped. The Department of Energy said negotiations with Southwestern Public Service Co., Amarillo, Tex., and Otisca Industries, Syracuse, N.Y., could not be completed. Both had been selected in the second round of competition in September 1988. Southwestern had planned to install a clean burning, fluidized bed, coal combustor in an existing power plant, while Otisca had proposed an advanced coal cleaning process that

Three proposed U.S. Clean Coal Technology demonstration projects have been dropped.

The Department of Energy said negotiations with Southwestern Public Service Co., Amarillo, Tex., and Otisca Industries, Syracuse, N.Y., could not be completed. Both had been selected in the second round of competition in September 1988.

Southwestern had planned to install a clean burning, fluidized bed, coal combustor in an existing power plant, while Otisca had proposed an advanced coal cleaning process that would produce a fuel for industrial boilers.

A third company, TRW Inc., Redondo Beach, Calif., had negotiated an agreement with DOE for an advanced coal combustor project but killed it due to higher than expected costs.

DOE has agreements with companies for 29 Clean Coal Technology demonstration projects and expects to conclude negotiations on six very soon.

DOE also is preparing to issue its formal call for proposals in 1991 under the fourth round of competition. Funds earmarked for the three terminated projects may be used in that round.