Financing a new pulverized coal plant with post combustion carbon capture
Tenaska, in its role as developer, will be responsible for obtaining financing for the project. Tenaska has raised approximately US$11.4 billion in aggregate financing, including US$4.7 billion in bank facilities, US$3.0 billion in capital market transactions and US$3.7 billion in corporate facilities.
This report discusses the issues associated with financing the Trailblazer project. Although a detailed discussion of the revenue gap currently facing the project was provided in the Global CCS Institute report entitled Bridging the Commercial Gap for Carbon Capture and Storage dated July 2011, a recap will be provided in this report. This report also discusses the financing considerations this and other large carbon capture and storage (CCS) projects will face, as well as factors that can mitigate financing risks. Finally, the report outlines Tenaska’s plan for financing the project.
The Tenaska Trailblazer Energy Center is a proposed multi-billion dollar, first-of-its-kind conventional coal plant with post-combustion carbon capture incorporated into its initial design, to be located near Sweetwater, Texas, United States of America. This report discusses both the general challenges associated with financing such a large, complex project and the specific financing challenges relating to this project.