The original incarnation of FutureGen was as a public-private partnership to build the world's first near zero-emissions coal-fueled power plant. The 275-megawatt plant would be intended to prove the feasibility of producing electricity and hydrogen from coal while capturing and permanently storing carbon dioxide underground. The Alliance intended to build the plant in Mattoon Township, Coles County, Illinois northwest of Mattoon, Illinois, subject to necessary approvals (issuing a “Record of Decision”) by the Department of Energy (DOE) as part of the National Environmental Policy Act (NEPA) process.
FutureGen was to be designed, developed and operated by the FutureGen Industrial Alliance, a non-profit consortium of coal mining and electric utility companies formed to partner with the DOE on the FutureGen project. The project was still in the development stage when its funding was cancelled in January 2008. The Alliance decision of the location of the host site, subject to DOE's completing NEPA environmental reviews, was announced in December 2007 after a two-year bidding and review process. Construction was scheduled to begin in 2009, with full-scale plant operations to begin in 2012.
The estimated gross project cost, including construction and operations, and excluding offsetting revenue, was $1.65 billion. The project was governed by a legally binding cooperative agreement between DOE and the Alliance. Under the agreement, DOE was to provide 74% of the project’s cost, with private industry contributing the other 26%. The DOE also planned to solicit the financial support and participation of international governments in the FutureGen project, since by 2020 more than 60% of man-made greenhouse gas emissions are expected to come from developing countries. Foreign financial support was to offset a portion of DOE’s cost-share. As of January 2008, the foreign governments of China, India, Australia, South Korea, and Japan had expressed interest in participating and sharing the cost of the project.
FutureGen was to sequester carbon dioxide emissions at a rate of one million metric tons per year for four years, which is the scale a Massachusetts Institute of Technology (MIT) report cites as appropriate for proving sequestration. The MIT report also states that “the priority objective with respect to coal should be the successful large-scale demonstration of the technical, economic, and environmental performance of the technologies that make up all of the major components of a large-scale integrated CCS system — capture, transportation and storage.” An injection field test similar to this was done in Norway.
In March 2009 Washington Post reported that U.S. Secretary of Energy Steven Chu expressed support for continuing the project using stimulus funds (after some changes that have not yet been specified) and making it a part of a larger portfolio of research plants developed in collaboration with other countries.
Following the successful completion of the first phase, in February 2013, the Energy Department announced the beginning of Phase II of the project development with a new cooperative agreement between the FutureGen Industrial Alliance and the Department of Energy. This means that the FutureGen project has government support as it moves into its third phase, deployment of the project.