Clean Coal Power Initiative: Round 2

Abstract - Excelsior Energy Inc.

Applicant: Excelsior Energy Inc.
Address: 294 Grove Lane E.
Wayzata, MN 55391
Congressional District: Minnesota's 3rd Congressional District
Team Members: ConocoPhillips
600 North Dairy Ashford (77079-1175)
P.O. Box 2197
Houston, TX 77252-2197
Texas's 18th Congressional District
Proposal Title: Mesaba Energy Project
Technology Type: Integrated Gasification Combined Cycle (IGCC) 
Total Estimated Cost: $ 1,185,000,000
Estimated DOE Share: $    150,000,000
Estimated Private Share: $ 1,035,000,000
Anticipated Project Site: Hoyt Lakes, St. Louis County, MN   55750
Minnesota's 8th Congressional District
Type of coal to be used: Illinois Basin #6
Size or scale of project: 4731 Tons of coal/day;  531 Megawatts (net)
Duration of proposed project: 100 Months
Primary Contact: Michael D. Wadley
Vice President, Operations and Technology 
Excelsior Energy Inc.
294 Grove Lane East, Suite 260
Wayzata, MN   55391
Telephone: 952-404-4103
Alternative Contact: Julie Jorgensen
Co-President and CEO
Excelsior Energy Inc. 
294 Grove Lane East, Suite 260
Wayzata, MN   55391
Telephone: 952-404-4103

Brief Description of Project:
Excelsior Energy Inc., an independent energy development company based in Wayzata, Minnesota, will build, own and operate the Mesaba Energy Project ("Mesaba"), a demonstration of the next generation Integrated Gasification Combined Cycle (IGCC) power plants. Mesaba, with an installed capacity of 531 MW (net), will be located near Hoyt Lakes, Minnesota and will be in service in 2010. Mesaba will demonstrate significant performance, efficiency and emission improvements that will make it the cleanest coal fueled power plant in the world.

ConocoPhillips' E-Gas Technology for solid fuel gasification will be used at the Mesaba Energy Project. The starting point for the project design is the Wabash River Coal Gasification Repowering Project (Wabash) in Terre Haute, Indiana. Wabash was built under the Department of Energy's Clean Coal Technology Program and has been in operation since 1995. Wabash has achieved an impressive, across the board low emissions profile even compared to conventional technologies being proposed and permitted for new coal fueled power projects today. Mesaba will advance such across-the-board performance to achieve criteria pollutant emission levels (SOx, NOx, mercury and particulate) equal to or below the current LAER rates for coal fired generation. Carbon dioxide emissions will be 15 to 20% less than most existing coal fired power plants as well.

In addition, Mesaba will improve commercial performance from that of the highly successful Wabash Plant demonstration by drawing upon the DOE-funded studies of potential Wabash performance upgrades, operational lessons learned from eight years of hands-on operating experience and through research and development efforts of the Department of Energy and ConocoPhillips' gasification team. The plant will be designed to achieve more than 15% higher availability than Wabash and further improved thermal efficiency at lower installed unit costs. Accelerating the deployment of advanced clean coal projects like Mesaba helps the industry meet the Department of Energy's aggressive Roadmap goals for coal fired power generation.

Mesaba will be located on a brownfield site, a former taconite mining facility, with access to water and multiple fuel transportation options. Preliminary environmental evaluations for this site have been completed.

Minnesota's Governor, Legislature, state development agencies such as Iron Range Resources, and local communities, in addition to Minnesota's U.S. Senators and a substantial number of its Representatives in Congress, have long been important supporters of the Mesaba Project because it will bring renewed economic vitality to the Iron Range by making it a regional production center for state-of-the-art clean, affordable energy. The Project expects to create 1000 local construction jobs over the three year construction period and several hundred direct permanent jobs when commercial operations commence, including additional employment and economic stimulus in surrounding communities.

Responding to the Department of Energy's Clean Coal Power Initiative Round 2 Solicitation, Excelsior Energy has requested DOE cost sharing of 12.7% of the projected cost of the construction and demonstration operational period of the Mesaba Energy Project. These funds will be fully repaid to the DOE in the future from a share of project revenues and technology licensing fees.

The requested Clean Coal Power Initiative funding, together with the significant incentives afforded the Project under groundbreaking Minnesota enabling legislation, will also demonstrate an effective Federal- State partnership to encourage market penetration of advanced technologies which benefit the country and its citizens.

Mesaba - taking its name, meaning "sleeping giant," from the Ojibwa Native American legend of the Iron Range - will awaken coal's true potential to meet our nation's need for baseload power generation resources while protecting the environment, putting Americans to work, reducing pressure on scarce natural gas resources and minimizing dependence on energy imports using a secure, abundant domestic natural resource.

For more information, contact:  
Michael Wadley 
Vice President - Operations and Technology 
Excelsior Energy Inc. 
294 Grove Lane East , Suite 260 
Wayzata, MN   55391
Phil Amick 
Technology Director - Gasification 
Technology Solutions Division 
600 North Dairy Ashford (77079-1175) 
P.O. Box 2197
Houston, TX   77252-2197