Illinois Governor Rod Blagojevich and Indiana Governor Mitch Daniels recently inked a united bid for the project through a Memorandum of Understanding. The agreement argued Illinois’ healthy financial support and geologic features make the state an ideal site for the project.

“This agreement shows vision in creating a regional, bipartisan alliance that pools our two states’ assets to realise our common goal of developing our abundant coal reserves in an environmentally responsible manner,” Blagojevich said.

“We share a coal basin...and we share a commitment to unlocking the full energy potential of Illinois Basin coal through coal gasification technology.

The only way to make coal king again is to make coal clean, which is what we are both committed to doing.”

Daniels said he was confident what the states could offer the FutureGen project was perfect for its needs. “We have all the elements that are needed for this project: the natural resources, ideal geologic structure, and a commitment to clean coal as American’s ace in the energy hole.”

FutureGen, a project to create the world's first coal-based, zero-emissions electricity and hydrogen production power plant, will generate about 275 MW of electricity when it fires up and will be operated by the National Energy Technology Laboratory. The US Department of Energy (DOE) and industry conglomerate FutureGen Industrial Alliance will chose the site and the technology used.

A quarter of the hefty development cost will be provided by the Alliance, which is also heading up design and construction.

Alliance members, many of which are high-profile industry forces, include Ohio-based American Electric Power; Australian-based BHP Billiton; Pennsylvania-headquartered Consol Energy; Beijing-based China Huaneng Group; Kennecott Energy of Wyoming; St. Louis-headquartered Peabody Energy and Atlanta-based Southern Company. The Alliance was established and joined the DOE in the effort in September this year.

A solicitation for potential sites is expected early next year, with shortlisting to follow by mid-2006 and the final site selection in mid to late 2007. In the meantime, design and environmental analysis will be conducted so the project may later fluidly move into final design, construction and operation, which FutureGen anticipates commencing about 2012.

The project was originally announced by current US president George W. Bush in February 2003.