Wyoming high-tech research facility plans put on hold
GE Energy, which has been working jointly with UW on the coal-gasification research center, delayed the project because of uncertainty about the future of U.S. energy policy, according to a UW media release.
GE has already delayed the project since the fall of 2010 because of a lack of a clear U.S. policy on climate and energy.
The facility, which would study advanced coal gasification technology for the Powder River Basin — a key economic driver to Wyoming’s economy — was scheduled to be completed by the end of 2012.
Keith White, General Manager of GE Energy’s gasification business, said in the UW release that his company will reassess the facility in 18 to 24 months, based on how much progress is made toward a clear federal energy policy.
“When government policy and economic realities are aligned in the U.S., we plan to be a leader in cleaner coal technologies,” White said.
Asked about the timing of the announcement, GE spokeswoman Yokima Davison said, “We didn’t want to get the university in a position where they’re investing more money.”
Bill Gern, UW’s vice president for research, said he was confident that work on the project will resume at some point.
“I really do see this as a delay,” Gern said. “I take GE officials’ word for it. They really wanted to say, ‘We see this as a delay. We’re just dealing with too much uncertainty right now.’”
Early stages
So far, the project is still in its preliminary stages, Gern said. An engineering design firm will still be hired to scope the size and initial cost of the project before GE freezes work, Gern said.
The overall cost of the center is being split evenly between GE and the state of Wyoming. So far, UW has spent about $2 million on the project, Gern said.
GE has sunk in about $12 million, though under the project agreement UW would reimburse about $4 million to $5 million of that if work progresses further, Gern said.
Gov. Matt Mead said in the release that while he is “disappointed” by the decision to pause the project, it wasn’t unexpected.
“This is a real-world example of the local impact of the federal government’s failure to provide a policy path forward for energy use in America,” Mead said. “We are strangled by uncertainty created by the energy policy vacuum in Washington D.C.”
UW President Tom Buchanan said in the release that the university “stands ready to proceed” with work on the facility, though he acknowledged “the need for all parties to be comfortable prior to moving forward.”
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