Chinese Firms to Take Leading Roles in Texas Clean Energy Project
Chinese firms will take leading roles in the Texas Clean Energy Project, the Wall Street Journal reports.
The state-owned Export-Import Bank of China will be the $2.5 billion project's sole lender, and China Petrochemical Corp., known as Sinopec, will manage construction of a critical portion of the plant, the Journal reports.
Originally, the bank had been expected to lend part of the money needed for the project, and Sinopec was expected to mostly observe construction, the Journal reports. Last month, the Journal had reported that the project's developer, Seattle-based Summit Power Group LLC, was talking with additional potential investors in the U.S. and Europe.
The U.S. Department of Energy has already allocated $450 million in grants to the project, which would include a coal-gasification plant. Developers say the plant would use coal more cleanly, capturing 90 percent of carbon dioxide otherwise emitted into the atmosphere for use in oil recovery.
The project, which would be built in Odessa, has secured tax benefits and has the necessary permits and contracts, including a contract with San Antonio to buy its electricity for 25 years.
(Houston Business Journal Sep. 2012)