In the five years since the project was announced, the price tag for FutureGen's construction has grown to an estimated $1.5-$1.8 billion. Given its 2003 financial pledge, nearly two-thirds of the project's cost would have to be picked up by the federal agency with the balance left to the Federal Government.

Under the restructured plan, the DOE's tab for FutureGen will be $156 million to FutureGen, which it would provide in 2009, and would cover the CCS portion alone.

"This approach builds on technological research and development advancements in IGCC and CCS technology achieved over the past five years and is expected to at least double the amount of carbon dioxide sequestered compared to the concept announced in 2003," DOE said.

"Clean coal technology is a vital component of the Bush Administration's vision for a cleaner, more secure energy future and this more cost-effective approach will demonstrate IGCC-CCS clean coal technology to enable wider use and commercialisation more rapidly."

US energy secretary Samuel Bodman said the move was part of US President Bush's total budget request of $648 million for the agency's Office of Fossil Energy's fiscal year 2009 work for an advanced coal technology research, development and demonstration program.

Of that budget amount, $407 million is earmarked for coal research such as the development of more efficient gasification and turbine technologies.

The remaining $241 million will be utilised to look at demonstrating cost-effective carbon capture and storage technology for coal-fired plants, $85 million for the DOE's Clean Coal Power Initiative and the balance for FutureGen.

"This $648 million request represents a $129 million increase from the president's FY2008 request and is the largest amount requested for DOE's coal program in more than 25 years," officials for the DOE said Wednesday, adding that a restructure for its financial involvement in FutureGen is "all-around" a better investment for the nation because of the strides being made in CCS.

The utilisation of the technology on commercial plants when operational will make them the cleanest-burning facilities in the world, sequestering 1 million tonnes each year at each unit.

"Coal is our nation's most abundant energy resource powering over half of the homes in America. To ensure a clean, reliable and affordable energy future, the Department of Energy is planning the largest budget request in over 25 years focusing on demonstrating advanced technology like carbon capture and storage so that the technology can be perfected and rapidly deployed across the country," the department said.

The DOE also noted that its role in private innovations can now be given greater focus while capping federal earmarking and help the nation reach its goal of increased clean energy technology use more rapidly.

"This would allow for commercial operation of IGCC power plants equipped with CCS technology to begin as soon as the plants are commissioned, between 2015 and 2016," the department said.

"The FutureGen concept announced in 2003 planned the creation of a near-zero emissions, 275MW power plant that produced hydrogen and electricity from coal on a smaller than commercial scale, serving as a laboratory for technology development.

"Today's announcement builds on advancements in technology made since 2003 and allows for electricity to be produced and greenhouse gas emissions sequestered at a rate and scale that offers tremendous potential for commercial viability."

The restructuring does not threaten the project, the FutureGen Alliance noted following the DOE's announcement.

"FutureGen can deliver the needed technology with urgency. It will take four to five years for DOE to evaluate new proposals, place contracts and conduct environmental reviews for new projects," said group chief Mike Mudd.

"FutureGen has crossed these hurdles and is positioned for success."

It will continue its work with the Government to keep the project moving, he added, having "proposed new solutions to address cost concerns [while] committed to its cooperative agreement with DOE".