1 Colossal Mistake—Long-term Price Projections $3 $6 $9 $12 $ $/mmBtu Natural Gas Oil Coal EIA AEO1996 $2.31 $40/bbl $65/bbl
2 Gasification—Domestic Supply Option Gasification
3 EPACT2005 Summary of Gasification Incentives
4 Loan Guarantees: Access to Capital & Lower Cost IGCCSCPCNGCC ($6 gas) NGCC ($10 gas) IGCC with Loan Guarantee Cent/KWh Fuel Capital + O&M Capital + O&M Capital + O&M Capital + O&M Capital + O&M Energy Costs $/MMBtu Syngas with Loan Guarantee Conversion Fuel Natural Gas Price 14 Gas Costs
5 No Appropriations needed under 3Party Covenant -- 80% loan guarantee -- Lower cost of capital -- Low risk scoring Federal Government ProvidesReceives State PUC -- Assured revenue stream -- Lower electricity/gas rates -- Jobs and development -- 20% equity -- EPC warranties -- Full Cost Recovery Owner