India Intelligence Report

   India & US in Futuristic Energy Project



The United States has invited India to participate in a futuristic private-public project, called the FutureGen that will build a coal-based power generation plant that will have zero carbon emissions at a cost of USD 950 million. India is the first one from the 22-nation Carbon Sequestration Leadership Forum (CSLF), a voluntary climate initiative, to join in this project. 

India is home to large coal reserves and plans to use coal in the medium and long-term for power generation  on cost considerations. Absence of other forms of energy that will meet this huge energy requirement is another major consideration for India to pursue coal-based energy generation. The major downside to this strategy is the emission of greenhouse gases that will bring major climatic changes affecting rain patterns, snow levels, and quality of rain. If this project is successful, the major benefit will be the lack of environmental cost to the nation.

Listing the benefits of the project to India, US Assistant Secretary of Energy Jeffrey Jarret said Indian companies might also join the project at a future date and benefit from this technology demonstrator. Besides, the reports and data collected on optimal ways of generating power will be shared with all members of this project. He also highlighted that this participation was independent of the Indo-US civilian nuclear deal and does not require Congressional approval.

The estimated cost of the project is USD 950 million out of which private sector portion is targeted to be USD 250 million. India plans to invest USD 10 million initially.

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