Article updated: 2/5/2013 10:15 AM

Energy Department funding phase 2 of FutureGen

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WASHINGTON — The U.S. Energy Department has announced it is going ahead with phase two of central Illinois' FutureGen clean-coal project.

In announcing the agreement with FutureGen Industrial Alliance on Monday, Energy Secretary Steven Chu says the department is committed to demonstrating carbon capture and storage technologies.

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The FutureGen Industrial Alliance is a group of coal and power companies planning to refit a coal-powered power plant in Meredosia with technology that removes carbon dioxide from coal and stores it underground. Carbon dioxide is a greenhouse gas linked to climate change. The project has $1 billion in federal funding.

The alliance and the Energy Department claim the project will help pave the way for other cleaner and more sustainable advanced coal-burning power plants.

Initial plans to build a plant near Mattoon fell through.

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