![]() ![]() By managing future CCS projects against established scopes, schedules, and budgets, DOE would be better positioned to mitigate its financial exposure if projects struggle. DOE documentation also indicates that had Congress authorized an extension on the use of the funds, DOE might have continued funding some of these projects. According to DOE documentation and officials, senior leadership directed actions to support projects even though they were not meeting required key milestones. As a result, the agency spent nearly $472 million on the definition and design of four unbuilt facilities-almost $300 million more than planned for those project phases. DOE, at the direction of senior leadership, did not adhere to cost controls designed to limit its financial exposure on funding agreements for coal projects that DOE ultimately terminated. These actions reduced DOE's ability to identify and mitigate technical and financial risks, a principle cited in DOE guidance.īypassing of cost controls. Additionally, according to DOE officials, the department used expedited time frames for coal project negotiations-less than 3 months as opposed to up to a year-based on DOE's desire to begin spending American Recovery and Reinvestment Act of 2009 funds quickly. Specifically, DOE fully committed to coal projects at their initial selection as opposed to allowing time for further review, as it did for selected industrial CCS projects. DOE's process for selecting coal projects and negotiating funding agreements increased the risks that DOE would fund projects unlikely to succeed. High-risk selection and negotiation processes. GAO identified significant risks to DOE's management of coal CCS demonstration projects. The third project was withdrawn when the facility onto which the project was to be incorporated was canceled. DOE provided approximately $438 million to three projects designed to capture and store carbon from industrial facilities, two of which were constructed and entered operations. Project documentation indicated and DOE officials and project representatives told GAO that economic factors-including decreased natural gas prices and uncertainty regarding carbon markets-negatively affected the economic viability of coal power plants and thus these projects. DOE terminated funding agreements with the other four projects prior to construction. Three projects were withdrawn-two prior to receiving funding-and one was built and entered operations, but halted operations in 2020 due to changing economic conditions. DOE provided nearly $684 million to eight coal projects, resulting in one operational facility. Largely due to external factors that affected their economic viability, coal CCS projects were generally less successful than CCS projects at industrial facilities, such as chemical plants.Ĭoal projects. The Department of Energy's (DOE) investment of $1.1 billion in carbon capture and storage (CCS) demonstration projects resulted in varying levels of success.
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