• Mississippi Power arrives at settlement with the State of Mississippi over Kemper power plant

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      Patrick Lavery

      Combustion Industry News Editor

The US state of Mississippi has arrived at a settlement with Mississippi Power (the subsidiary of Southern Co) for cost recovery from customers for the Kemper carbon capture and storage-equipped gas-fired power plant. The plant was intended to incorporate coal gasification, but Mississippi Power last year abandoned the development of the gasification units, deciding instead to run the plants on a supply of natural gas. The new settlement allows the company to recover a further US$112.6 million from customers on the development of the plant, down from the US$200 million originally desired. In additional, if Mississippi Power one day completes the gasification part of the plant, it will not be eligible to recover any additional costs. The Kemper plant, although it does capture around 65% of its carbon emissions for use in enhanced oil recovery, is generally seen as a warning for the development of CCS-equipped plants – originally budgeted at US$2.9 billion (€2.3 billion), costs had spiralled to $7.5 billion (€6.0 billion) by the time development was halted.