This morning the Washington post reported, “…the Bush administration might drop its support for a $1.5 billion coal-fired power plant designed to store greenhouse gases underground, citing mounting cost estimates and other possible technologies.” Later in the day Platts reported, “The US Department of Energy will likely divide some of its funding for the scrapped FutureGen power plant between a handful of carbon capture and storage projects…”

FutureGen CEO Michael Mudd responded via a press release by stating, “The Alliance remains committed to keeping FutureGen on track. We owe it to the people of Illinois, to the Alliance members who have contributed significant funds and resources to bring the project to this stage and to society which depends on technology to provide clean, affordable and secure energy.”

The reports of the redistribution of funds by the DOE seem to be accurate. In recent days there have been announcements of a variety of new clean energy projects including a partnership with the state of Hawaii, investment in cellulosic bio-refineries and funding for hybrid plug-in development in Michigan.

We’ll keep an eye on the DOE to see if any funds specifically slated for carbon capture and storage are announced in the near future.

In this video (click ‘read the rest’ to view) courtesy of E&E TV Future Gen Alliance CEO Michael Mudd explains the current situation.