‘etre nn an s rarsconaals ®) FutureGen {otra Riticned ae eo co Kenneth K. Humphreys Chief Executive Omtcer 508-524-7784 03 February 2015 ‘The Honorable Ernest J. Moniz Secretary of Energy 1000 Independence Ave., SW Washington, DC 20585 ‘Dear Mr. Secretary: We are profoundly disappointed with the Department’s recent decision to suspend development funding for FurureGen 2.0, the world’s first coal-fueled power plant with oxy-combustion technology and deep saline geologic CO: storage. ‘We understand a primary concer that factored into the Department's decision involved commercial financing considerations. FutureGen 2.0 is the only CCS power project with an investment-grade twenty-year power purchase agreement (PPA) valued at nearly $5 billion. The robust PPA has allowed FutureGen 2.0 to engage financial markets as a long-term contracted asset. This has drawn, considerable support of brand-name international banks and first-tier equity partners capable of bringing $700 million in private capital to this first-of-a-kind technology demonstration project. The recent National Coal Council study, “Fossil Forward: Revitalizing CCS” lays out very concisely the path needed for widespread CCS technology deployment starting with demonstration projects. ‘The failure of FutureGen to achieve its objectives questions U.S. resolve in this space, FutureGen 2.0 also involves design, permitting, and constructing a COs storage site. ‘The project was the first in the nation to be issued Class VI CO: storage permits for a commercial-scale power plant. For this accomplishment, among others, the project has gained substantial international attention. In mid-December, DOE referred to the COs storage site as a “national treasure”. This unique national asset is worth preserving. The Alliance was created at the Department’s request to help advance near-zero emissions technology. Since that initial invitation, industry has contributed more than $25 million in private sector resources to this effort. The State of Illinois, our highly valued partner in this effort, has contributed more than $9 million in non-federal funds and gone to extraordinary lengths to expedite permitting, provide certain liability protections, and support the PPA. Thus, there is substantial rnon-federal “skin in the game” and a vested interest in the success of the Department's program. We respectfully request that the Department consider a path forward that supports continued progress that allows completion of a funding expiration solution, equity position finalization, and preservation of the all-important permits to construct the oxy-combustion power plant and CO2Page 2 storage site, The project is poised for success, and the Department stands to be instrumental in completing it. ‘The world is watching what we do together. We look forward to your response. Respectfully, sdk K. Ghpby Kenneth K. Humphreys Chief Executive FutureGen Alliance, Inc. ‘The Honorable Richard J. Durbin ‘The Honorable Mark Kirk ‘The Honorable Aaron Shock ‘The Honorable Bruce Rauner