Reporter Eddie Curran produced a bang-up story for Watchdog.org about the Kemper project and presented a troubling scenario: What if no one will buy the carbon dioxide purchased by the Kemper plant? Mr. Curran reported:
The success of Mississippi Power’s Kemper Plant rests in part on the assumption that there will be one or more buyers for some 3 million tons of CO2 generated each year as a byproduct of the plant’s revolutionary coal gasification process.
Now that assumption appears imperiled, and with it the fate of the troubled $6.2 billion power plant.
A Watchdog.org review of public filings and court records suggests the two oil-drilling companies are no longer contractually bound to purchase the CO2.
Just as troublesome, Denbury Onshore and Treetop Services LLC may no longer have the financial resources to use – much less purchase – the tremendous amounts of CO2 the Kemper contracts require them to buy.....
The Kemper plant was supposed to cost $2.4 billion and begin producing power and capturing CO2 by May 2014. The projected final cost is now up to $6.2 billion and the projected completion date is some point in the first half of 2016.
The contracts with Denbury Onshore and Treetop Services contained provisions that protected Mississippi Power in the event that either refused to accept its allotment of CO2.
But the contracts also contained termination clauses – deadlines after which the parties could cancel the arrangements without penalty if the Kemper Plant was not yet complete.
In its recent financial disclosures with the Securities Exchange Commission, including a filing in late April, Mississippi Power warned that delays in completion of the plant had imperiled three key contracts.
The company noted that the cancellation of either of those deals could have serious consequences for the financial viability of the project.....Rest of article. There is more, much more good information to read.