FutureGen and Economics

Note: This post was meant for the SIUC Energy Tech Blog, but I'll leave it here in case anyone's linking to it.

Recent news: Peabody Energy Acquires Equity Interest in Calera Corporation

The Calera Corporation Technology captures emissions from coal- or gas-fired fuel plants and converts them into green building materials. Another byproduct is fresh water.

FutureGen is seemingly becoming more of a reality as more companies join the roster and more research funding is pumped into the related technologies.

What will the impact be on our region if FutureGen is implemented? In case you missed it, Dr. Ira Altman from SIUC Department of Agribusiness Economics wrote a report entitled

FutureGen: The Economic Impacts of Clean Coal for Illinois

Ira Altman, PhD
Assistant Professor
Department of Agribusiness Economics
College of Agricultural Sciences
Southern Illinois University-Carbondale
June 2007
Link to the full report (pdf).

Table of Contents:

Table of Contents
Summary 3
Introduction 4
Study Area Description 4
Results and Analysis 10
Economic Impacts of Facility Operations – Statewide 11
Economic Impacts of Construction – Statewide 11
Economic Impacts of Facility Operations – Two County Model 12
Appendix A Input-Output Analysis and IMPLAN 14
Appendix B Output Impact- Two County Model 16
Appendix C Output Impact State Model- Facility Operation 23
Appendix D Output Impact State Model- Facility Construction 30

Summary:

This research concludes that the economic impact of locating a coal gasification and carbon sequestration project in either Coles County or Douglas County would result in significant positive economic activity for the state of Illinois and the local economy.

Impact results are calculated using the IMPLAN Professional Version 2.0® for two models: a state level model and a two county model. Report highlights include the following impacts from the operation of a coal gasification facility:

---A $135 million increase in statewide economic output from facility operation
---A $34 million increase in statewide labor income from facility operation
---A $91 million increase in statewide value added from facility operation
---An $11 million increase in tax revenue from facility operation
---An increase of 510 jobs in Illinois from facility operation
---A $258 million increase in statewide economic output from construction
---A $116 million increase in statewide labor income from construction
---An increase of 2,525 jobs in Illinois from construction
---A $85 million increase in local economic output
---A $19.98 million increase in income for local labor
---A $59 million increase in local value added
---A $8.1 million increase in taxes and
---An increase of 360 new jobs to the local area.

Dr. Altman is interested in doing additional research more focused on the impact of Illinois coal from FutureGen.