DOE Clean Coal Technology Programs Offer Highest Return on Investment

Contact: Lisa Camooso Miller (703) 302-1228

Alexandria, VA – In a study released today, “Benefits of Investment in Clean Coal Technology,” the American taxpayer is seeing a quick and significant return on the federal government’s investment in advanced clean coal technologies. Management Information Services, Inc. conducted the analysis for American Coalition for Clean Coal Electricity (ACCCE) which released the findings today.

“Consumers will be surprised to learn that for every dollar the government invests in clean coal technology research and development, the American taxpayer gets $13 in benefits,” said Joe Lucas, ACCCE senior vice president of communications. “And as we work toward developing programs to capture and store greenhouse gas emissions, this type of investment will be more important than ever to the American taxpayer as we work to ensure that it can reduce emissions and still maintain access to affordable, reliable electricity produced by American coal and other domestic fuels.”

Management Information Services, Inc. has conducted numerous studies for the National Academy of Sciences to review and evaluate the effectiveness of government investments in energy research and development programs. This study not only provides an update-to-date review of federal spending for research and development to promote the development of advanced clean coal technologies and the derived benefit, but it also compares the public benefits of investments in these programs to other energy-related spending programs.

The analysis shows that several energy research and development programs fail to provide a return on investment for the American taxpayer, while investments in the clean coal projects’ return on investment occurs more quickly and the realized benefit is greater.

“Many of the emerging technologies required to lower the carbon intensity of our current energy supply system will involve first-of-their kind technologies,” said Lucas. “While there is always risk involved in bringing new technologies to the marketplace, driving down the cost of deploying these technologies so the consumer gets the benefit of reduced emissions and continued access to affordable energy is equally important,” said Lucas.

According to the study, the primary benefit for American taxpayers resulting from investments in clean coal technology are reduced electricity rates resulting from lower compliance costs as coal-based electricity plants deploy new technologies to meet more stringent air quality standards. Moreover, as the new study shows, the federal investment in these new technologies more than pay for themselves in terms of reduce electricity costs and other associated benefits for the American taxpayer.

The findings of the MISI study shows that the taxpayer benefits of investments in clean coal technologies accumulate over time:

• By 2009, the cumulative benefits from the program totaled $6 billion and cumulative Department of Energy (DOE) costs totaled $3.5 billion, for a return on investment (ROI) of 1.7.
• By 2012, the cumulative benefits from the program will likely total more than $12 billion and cumulative DOE costs will likely total $4.4 billion, for an ROI of nearly 3.
• By 2015, the cumulative benefits from the program will likely total $41 billion and cumulative DOE costs will likely total $5.7 billion, for an ROI of more than 7.
• By 2020, the cumulative benefits from the program will likely total $111 billion and cumulative DOE costs will likely total $8.5 billion, for an ROI of more than 13.

The executive summary and full report can be found here.

About ACCCE:

The American Coalition for Clean Coal Electricity (ACCCE) is a non-profit, non-partisan partnership of companies involved in producing electricity from coal. Because coal is America’s most abundant energy resource, ACCCE supports energy policies that balance coal’s vital role in meeting our country’s growing need for affordable and reliable electricity with the need to protect the environment. ACCCE also advocates for the development and deployment of advanced clean coal technologies that will produce electricity with near-zero emissions. Headquartered in Alexandria, VA. For more information, visit www.cleancoalusa.org or www.americaspower.org