United States General Accounting Office

GAO Report to the Chairman, Committee on

the Budget, House of Representatives

January 1998 DEPARTMENT OF

ENERGY

Fossil Energy

Programs

GAO/RCED-98-63

GAO United States

General Accounting Office

Washington, D.C. 20548

Resources, Community, and

Economic Development Division

B-278987 

January 30, 1998

The Honorable John R. Kasich

Chairman, Committee on the Budget

House of Representatives

Dear Mr. Chairman:

The Department of Energy’s (DOE) fiscal year 1998 appropriations provide

about $362 million for the Fossil Energy Research and Development (R&D)

Program and rescinds about $101 million of the $2.4 billion in

appropriations for the related Clean Coal Technology Demonstration

Program.1

 These two programs are managed by DOE’s Office of Fossil

Energy to develop and demonstrate advanced technologies for producing

and using fossil fuels through federally funded projects and cost-shared

partnerships with industries. As agreed with your office, this report

provides information on (1) the R&D goals and technologies being

developed by the Fossil Energy R&D and Clean Coal Technology

Demonstration programs, (2) the level of funding committed to R&D

activities within these programs in fiscal years 1996 through 1998, and

(3) the companies receiving R&D awards (during these fiscal years) in

which the government contributed more than $1 million.2

We categorized R&D activities as basic research, applied research,

development, and demonstration. Appendix I provides the definitions used

in this report for these R&D phases.

Results in Brief DOE’s overall R&D goal for its Fossil Energy R&D and Clean Coal Technology

Demonstration programs is to improve the efficiency and environmental

performance of current methods for producing and using coal, natural gas,

and petroleum. For coal, this improvement translates into R&D efforts by

both programs to develop and demonstrate technologies that efficiently

remove potential environmental pollutants from coal prior to its use.

1

Between 1985 and 1992, the Congress passed several appropriation acts that provided $2.7 billion for

the Clean Coal Technology Demonstration Program that would remain available until the funds were

expended, rescinded, or sequestered. These funds have been reduced through recissions and

sequestrations, including the fiscal year 1998 recission, to about $2.3 billion. DOE officials can

continue to use remaining funds to complete ongoing or new projects. During fiscal year 1998, DOE

intends to obligate (i.e., commit to spend) about $220 million.

2

Unless stated otherwise, this report discusses funding in terms of actual and estimated obligations,

which are funds that DOE has committed or will commit to spend during a fiscal year. DOE generally

commits to spend funds by awarding contracts and cooperative agreements or agreeing to fund

specific activities that are included under such agreements.

Page 1 GAO/RCED-98-63 Fossil Energy Programs
B-278987 

Improvement also means the development of technologies that either

generate electricity from coal more efficiently than current technologies or

that can generate electricity from liquids and gases derived from coal. For

natural gas and petroleum, DOE is focusing its efforts on improving drilling,

storage, transportation, and combustion technologies and processes

associated with locating, extracting, and using the resources.

DOE obligated or plans to obligate about $1.3 billion for R&D activities

sponsored by the two programs during fiscal years 1996 through 1998.3

The Fossil Energy R&D Program provides $856 million, $743 million of

which has been or will be spent on activities in the applied research and

development phases of R&D; the remainder will be spent for basic research.

The Clean Coal Technology Demonstration Program accounts for about

$417 million of the $1.3 billion in obligations. Because the program

concentrates its efforts on technologies that have completed laboratory

and field testing, the program obligated funds exclusively on technologies

in the demonstration phase of R&D. In addition, DOE obligated or plans to

obligate about $307 million for the management of the programs and other

non-R&D activities.

For the 3 fiscal years examined, DOE’s fossil energy programs made or

continued 162 R&D contracts and other types of assistance in which the

government committed to spend more than $1 million. These procurement

awards involved 112 companies and other nonfederal participants. The

largest of these awards generally went to companies participating in the

Clean Coal Technology Demonstration Program. Many of these awards

were for projects that spanned several years and were partly funded by the

companies.

Background The Fossil Energy R&D Program and the Clean Coal Technology

Demonstration Program support the research, development, and

demonstration of a variety of coal, natural gas, and petroleum

technologies. The Fossil Energy R&D Program, which has been part of DOE

since it was created in the 1970s, supports R&D which DOE expects to lead

to technologies that will be used by electric utilities and other industries. If

the program is successful in developing commercially viable technologies,

DOE expects that these technologies will be significantly more efficient and

environmentally acceptable than fossil fuel burning technologies used

3

The data provided in this report regarding funds DOE obligated or plans to obligate for the Fossil

Energy R&D and Clean Coal Technology Demonstration programs are as of December 1997.

Page 2 GAO/RCED-98-63 Fossil Energy Programs
B-278987 

today. The program includes a broad spectrum of basic and applied

research and development, some of which is cofunded by industry.

The Clean Coal Technology Program, which was authorized in 1984, is a

partnership between government and industry for sharing the costs of

commercial-scale projects that DOE believes can be more efficient than

current coal technologies. The Congress has appropriated a total of

$2.3 billion for the program, which has been implemented through a series

of competitive solicitations of projects. Each project is carried out and

funded under a cooperative agreement between DOE and the project’s

sponsor. DOE funds up to 50 percent of a project’s cost, and the project’s

sponsor and other nonfederal participants fund the balance.

Goals and

Technologies

Supported by DOE’s

Fossil Energy

Programs

For program management and budget purposes, DOE has organized its

Fossil Energy R&D Program into five major R&D areas, several of which are

further divided into subprograms. The general goal of work in these

areas—together with the Clean Coal Technology Demonstration

Program—is to improve the utilization of fossil fuels by improving facets

of the production, delivery, and/or use of coal, natural gas, and petroleum.

Table 1 summarizes the subprograms’ goals and provides examples of

technologies addressed by these major program areas. Appendix II

presents additional details on goals and technologies for activities within

the subprograms.

Page 3 GAO/RCED-98-63 Fossil Energy Programs
B-278987 

Table 1: Goals and Technologies of DOE’s Fossil Energy R&D Program and Clean Coal Technology Demonstration

Program

Program Subprograms Goals Technologies

Coal Advanced clean fuel research;

advanced clean/efficient power

systems; advanced research and

technology development

Develop highly efficient integrated

coal combustion technologies.

Chemical cleaning processes,

fluidized bed combustion,

Fischer-Tropsch liquefaction

Gas Natural gas research; fuel cells Improve exploration and

production technologies, gas

turbines, and chemical fuel cell

systems.

Reservoirs modeling, corrosion

resistant materials, and solid

oxide fuel cell system

Petroleum Oil technology Produce economically, hard to

reach oil and improved refinery

technologies.

Microbes, thermal, and other oil

extraction techniques; improved

environmental compliance

technologies

Cooperative R&D None Improve basic scientific

information available on the use of

fossil fuels.

Variety of collaborative fossil

energy R&D activities

Mining Materials Develop extended life and better

performance for material in

corrosive and high-temperature

applications.

Advanced processes for

producing metal alloys

Clean Coal Technology

Demonstration

Advanced electric power

generation systems, 

environmental control devices,

coal processing for clean fuels,

and industrial applications

Develop more efficient and

environmentally acceptable coal

technologies for electric utilities

and industry.

Low nitrogen oxide coal

emissions systems, coal

gasification or

fluidized bed combustion systems

integrated into electric power

plants

Source: Developed by GAO using DOE’s data.

Fiscal Years 1996

Through 1998 Funding

for DOE’s Fossil

Energy R&D and

Clean Coal

Technology

Demonstration

Programs

As of December 1997, DOE obligated or planned to obligate about

$1.3 billion (or about 75 percent) of its fiscal years 1996 through 1998

funding on R&D activities within the Fossil Energy R&D and Clean Coal

Technology Demonstration programs. (See table 2.) The remaining funds

were obligated or were to be obligated for environmental restoration,

program management, and other non-R&D activities.

Page 4 GAO/RCED-98-63 Fossil Energy Programs
B-278987 

Table 2: Summary of Fiscal Years 1996

Through 1998 Obligations for R&D and

Non-R&D Programs Within Two of

DOE’s Fossil Energy Programs

Dollars in millions

Activity/program

area

FY

1996

FY

1997

FY

1998 Total

Research and Development

Fossil Energy

R&D

$296.2 $286.2 $273.7 $856.1

Clean Coal

Technology

Demonstration

30.6 182.2 204.1 416.9

Subtotal 326.8 468.4 477.8 $ 1,273.0

Non-Research and Development

Fossil Energy

R&D

85.3 85.8 87.6 258.7

Clean Coal

Technology

Demonstration

16.0 16.0 15.9 47.9

Subtotal 101.3 101.8 103.5 306.6

Total $428.1 $570.2 $581.3 $1,579.6

Source: Developed by GAO using DOE’s data.

Fiscal Years 1996 Through

1998 Funding for R&D

Activities

As of December 1997, DOE obligated or planned to obligate about $1.3

billion for fiscal years 1996 through 1998 R&D activities sponsored by the

two programs. About $743 million (or about 87 percent) of the Fossil

Energy R&D Program’s funding has been or will be spent on activities in the

applied research and development phases of R&D. (See table 3.) Projects in

these phases are in the laboratory for research or small-scale testing and

are not ready to be tested under commercial operating conditions. About

$113 million (or about 13 percent) of the program’s funding has been or

will be spent on basic research. In addition, about $417 million has been or

will be spent by the Clean Coal Technology Demonstration Program on

projects to demonstrate the commercial feasibility of technologies.

Projects in this phase are closest to the marketplace in terms of eventual

commercialization.

Page 5 GAO/RCED-98-63 Fossil Energy Programs
B-278987 

Table 3: Estimated Obligations by Research Phase for R&D Activities Within Two of DOE’s Programs, Fiscal Years 1996

Through 1998

Dollars in millions

Program

Basic

research

Applied

research Development Demonstration Total

Fossil Energy R&D

Coal $59.9 $167.1 $102.2 0 $329.2

Gas 25.0 173.0 144.9 0 342.9

Petroleum 7.7 72.7 70.0 0 150.4

Cooperative R&D 4.4 4.4 8.8 0 17.6

Mining R&D 16.0 0 0 0 16.0

Total $113.0 $417.2 $325.9 0 $856.1

Clean Coal Technology

Demonstration

0 0 0 $416.9 $416.9

Source: Developed by GAO using DOE’s data.

Appendixes III and IV have a comprehensive listing of R&D funding by

phase for each Fossil Energy R&D subprogram and activity and for the

Clean Coal Technology Demonstration Program, respectively, for fiscal

years 1996 through 1998.

Fiscal Years 1996 Through

1998 Funding for Non-R&D

Activities

DOE obligated or plans to obligate an additional $307 million to manage the

programs and other non-R&D activities in fiscal years 1996 through 1998. Of

these funds, about $250 million (or about 81 percent) is or will be

obligated for program direction and management support. (See table 4.)

Program direction and management support includes funding for salaries

and benefits, travel, administrative services, and other related activities.

Other non-R&D funds will be used to improve the physical infrastructure at

DOE research sites, clean up environmental damage caused by DOE’s

activities at its research sites, and promote coal technology export

programs.

A description of the non-R&D activities funded by the two programs is

included in appendix V.

Page 6 GAO/RCED-98-63 Fossil Energy Programs
B-278987 

Table 4: Budget Obligations for

Non-R&D Programs Within Two

Energy Programs, Fiscal Years 1996

Through 1998 Budget obligations

Dollars in millions

Program FY 1996 FY 1997 FY 1998 Total

Fossil Energy R&D

Program

direction and

management

support

$65.6 $68.7 $66.1 $200.4

Environmental

restoration

14.4 12.6 13.3 40.3

Coala 0 0 3.3 3.3

Fuels Program 2.4 2.4 2.2 7.0

Plant and

capital

equipment

2.9 2.1 2.7 7.7

Total $ 85.3 $85.8 $87.6 $258.7

Clean Coal Technology Demonstration

Program

direction and

management

support

$16 $16 $15.9 $47.9

aThese funds are used for coal technology export, support of international activities, and grants to

colleges and universities, as discussed in app. V.

Source: Developed by GAO using DOE’s data.

Companies Receiving

Funds During Fiscal

Years 1996 Through

1998

DOE uses contracts, grants, and cooperative agreements to encourage

industry participation and cost-sharing in R&D activities. During fiscal years

1996 and 1997 and fiscal year 1998 through December 16, 1997, 112

companies received 162 awards to conduct R&D activities.

The Clean Coal Technology Demonstration Program made the largest

award, which was for $219 million. Other awards made by the program

ranged from $490,000 to $183 million. (See table 5 for a list of the

program’s 10 largest awards.) Many of the active awards are for projects

that span several years and are being partly matched by the companies.

Because many of the current projects involve the demonstration of

technologies at large electric power plants, the government’s share of the

cost of these projects is generally more expensive than research activities

funded by the Fossil Energy R&D Program.

Page 7 GAO/RCED-98-63 Fossil Energy Programs
B-278987 

Table 5: Projects and Companies Associated With the Most Costly Demonstration Projects

Dollars in millions

Principal

participanta

Description of

project

Typical non-DOE

team memberb

Government share

of costs

Industry share

of costs

Wabash River Coal

Gasification Repowering

Project Joint Venture

Wabash River Coal

Gasification Repowering

Project

PSI Energy,Inc., Destec

Energy, Inc.

$219.1 $219.1

Clean Energy Partners, L.P. Clean Energy

Demonstration

Project

(fuel cell)

Fuel Cell Engineering

Corp., Electric Power

Research Institute

$183.3 $657.8

Tampa Electric Company Tampa Electric

Integrated Gasification

Combined Cycle Project

Texaco Development

Corp., General Electric

Company

$171.0 $172.5

Sierra Pacific Power

Company

Pinion Pine Integrated

Gasification Combined

Cycle Power Project

Foster Wheeler USA

Corp.,The M. W. Kellogg

Company

$168 $167.9

CPICOR Management

Company, L.L.C.

Clean Power From

Integrated Coal/Ore

Reduction (CPICOR)

Geneva Steel Company,

Air Products and

Chemicals, Inc.

$149.5 $916.3

Alaska Industrial

Development and Export

Authority

Healy Clean Coal Project Golden Valley Electric

Assn., TRW, Inc.

$117.3 $124.8

City of Lakeland, Fla. McIntosh Unit 4B

Topped Pressurized

Bubbling Fluidized-Bed

Combustion

Demonstration Project

Foster Wheeler Energy

Corp., Westinghouse

Electric Corp.

$109.2 $109.5

City of Lakeland, Fla. McIntosh Unit 4A

Bubbling Fluidized-Bed

Combustion

Demonstration Project

Foster Wheeler Energy

Corp., Westinghouse

Electric Corp.

$93.3 $93.3

Air Products Liquid Phase

Conversion Company, L.P.

Liquid Phase Methanol

Demonstration

Air Products and

Chemicals Inc., Eastman

Chemical Company

$92.7 $121.0

York County Energy

Partners, L.P.

Advanced Circulating

Fluidized-Bed

Demonstration Project

Foster Wheeler Energy

Corp.

$74.7 $304.9

aCompanies receiving awards from DOE may represent or lead teams of multiple contractors. In

these cases, the lead company may divide the government’s share of costs among team

members.

bAll partners have not been listed.

Source: Developed by GAO using DOE’s data.

Page 8 GAO/RCED-98-63 Fossil Energy Programs
B-278987 

Within the Fossil Energy R&D Program, DOE’s 10 largest awards for R&D

activities ranged from $29 million to $128 million.4 (See table 6.) Six of

these companies received multiple awards. Westinghouse Electric

Corporation received four awards; the total government share of these

awards was $296.4 million. Each company provided some matching funds.

Table 6: Projects and Companies

Associated With the Most Costly R&D

Projects Active During Fiscal Years

1996 Through 1998

Dollars in millions

Companya

Number

of

awards

Government

share of

costs

Industry

share of

costs

Description of

largest

award

Westinghouse Electric

Corp.

4 $296.4 $340.2 Utility advanced turbine

systems

Foster Wheeler

Development Corp.

1 $127.9 $71.6 Coal-fired highperformance power

systems

General Electric Co. 2 $121.1 $263.7 Utility advanced turbine

systems

Energy Research Corp. 1 $101.7 $39.7 Molten carbonate fuel

cells

United Technologies

Corp.

2 $91.6 $49.4 Coal-fired highperformance power

systems

M-C Power Corp. 2 $87.7 $46.2 Molten carbonate fuel

cells

Air Products &

Chemicals

3 $58.1 $62.9 Fuels and chemicals

from synthetic gas

Riley Stoker Corp.b 1 $44.3 $12.1 Low-emission boiler

systems

Combustion

Engineering

2 $31.3 $28.4 Low-emission boiler

systems

Fuel Cell Engineering

Company

1 $28.8 $24.8 Molten carbonate fuel

cells

aCompanies receiving awards from DOE may represent or lead teams of multiple contractors. In

these cases, the lead company may divide the government’s share of costs among team

members.

bRiley Stoker Corp., now called DB Riley, Inc., was competing with Combustion Engineering and

Babcock and Wilcox Co. for the design and development of a low-emission boiler system. During

September 1998, DOE selected DB Riley, Inc., over the other companies to continue the

development of the technology.

Source: Developed by GAO using DOE’s data.

4

DOE also contracts for management of the National Institute for Petroleum Research in Bartlesville,

Oklahoma, and the Pittsburgh Energy Technology Center. These contracts are valued at about

$215 million and $97 million, respectively.

Page 9 GAO/RCED-98-63 Fossil Energy Programs
B-278987 

Appendix VI provides additional detail on both programs’ awards that will

cost the government more than $1 million over the life of the project.

Agency Comments We provided copies of a draft of this report to DOE for review and

comment. We discussed the draft with DOE officials, including the Principal

Deputy Assistant Secretary for Fossil Energy, who stated that the report

effectively summarized the programs’ goals, funding, and participants. DOE

provided us with technical corrections and clarifications that we

incorporated where appropriate.

Scope and

Methodology

To identify the programs’ goals and technologies, we interviewed officials

in DOE’s Office of Fossil Energy and reviewed documents such as the fiscal

year 1998 budget request for the programs and the October 1997 update on

the Clean Coal Technology Demonstration Program that discussed the

program’s goals and activities. To determine the programs’ funding by R&D

phrases and to identify the companies receiving these funds, we obtained

detailed funding data for fiscal years 1996 through 1998 from DOE that

identified the government’s cost and total value of contracts active during

this period and the companies receiving these procurement awards. We

also interviewed DOE officials in the Office of Fossil Energy who compiled

this funding information to discuss the assumptions that the officials used

to prepare the information and its general reasonableness. However, we

did not independently verify or validate the data provided to us.

As arranged with your office, unless you publicly announce its contents

earlier, we plan no further distribution of this report until 15 days after the

date of this report. At that time, we will send copies to the Secretary of

Energy and make copies available to others on request.

Page 10 GAO/RCED-98-63 Fossil Energy Programs
B-278987 

Please call me at (202) 512-3841 if you or your staff have any questions

about this report. Major contributors to this report include Robin Nazzaro

and Robert Lilly.

Sincerely yours,

Susan Kladiva

Associate Director

Energy, Resources, and Science Issues

Page 11 GAO/RCED-98-63 Fossil Energy Programs
Contents

Letter 1

Appendix I 

Definitions of

Research and

Development Phases

16

Appendix II 

DOE’s Fossil Energy

Research and

Development

Program’s R&D Goals

and Technologies by

Budget Category

17

Advanced Clean Fuels Research 17

Advanced Clean/Efficient Power Systems 18

Advanced Research and Technology Development 19

Natural Gas Research 20

Fuel Cells 21

Oil Technology 22

Cooperative Research and Development 22

Materials 23

Appendix III 

Fossil Energy R&D

Funding by Phases of

R&D, Fiscal Years

1996 Through 1998

24

Appendix IV 

Clean Coal

Technology

Demonstration

Program Funding, by

Phases of R&D, Fiscal

Years 1996 Through

1998

33

Page 12 GAO/RCED-98-63 Fossil Energy Programs
Contents

Appendix V 

Description of

Non-R&D Fossil

Energy Programs

34

Appendix VI 

Companies Receiving

Fossil Energy R&D

and Clean Coal

Technology

Demonstration

Awards Over $1

Million

35

Tables Table 1: Goals and Technologies of DOE’s Fossil Energy R&D

Program and Clean Coal Technology Demonstration Program

4

Table 2: Summary of Fiscal Years 1996 Through 1998 Obligations

for R&D and Non-R&D Programs Within Two of DOE’s Fossil

Energy Programs

5

Table 3: Estimated Obligations by Research Phase for R&D

Activities Within Two of DOE’s Programs, Fiscal Years 1996

Through 1998

6

Table 4: Budget Obligations for Non-R&D Programs Within Two

Energy Programs, Fiscal Years 1996 Through 1998

7

Table 5: Projects and Companies Associated With the Most Costly

Demonstration Projects

8

Table 6: Projects and Companies Associated With the Most Costly

R&D Projects Active During Fiscal Years 1996 Through 1998

9

Table II.1: Goals and Technologies Associated With the Activities

Within the Advanced Clean Fuels Research Subprogram

17

Table II.2: Goals and Technologies Associated With the Activities

Within the Advanced Clean/Efficient Power Systems Subprogram

18

Table II.3: Goals and Technologies Associated With the Activities

Within the Advanced Research and Technology Development

Subprogram

19

Page 13 GAO/RCED-98-63 Fossil Energy Programs
Contents

Table II.4: Goals and Technologies Associated With the Activities

Within the Natural Gas Research Subprogram

20

Table II.5: Goals and Technologies Associated With the Activities

Within the Fuel Cells Subprogram

21

Table II.6: Goals and Technologies Associated With the Activities

Within the Oil Technology Subprogram

22

Table III.1: Coal Program Funding, Fiscal Year 1996 24

Table III.2: Gas Program Funding, Fiscal Year 1996 25

Table III.3: Petroleum Program Funding, Fiscal Year 1996 25

Table III.4: Other Fossil R&D Funding, Fiscal Year 1996 26

Table III.5: Coal Program Funding, Fiscal Year 1997 27

Table III.6: Gas Program Funding, Fiscal Year 1997 28

Table III.7: Petroleum Program Funding, Fiscal Year 1997 28

Table III.8: Other Fossil Energy R&D Funding, Fiscal Year 1997 29

Table III.9: Coal Program Funding, Fiscal Year 1998 30

Table III.10: Gas Program Funding, Fiscal Year 1998 31

Table III.11: Petroleum Program Funding, Fiscal Year 1998 31

Table III.12: Other Fossil R&D Funding, Fiscal Year 1998 32

Table IV.1: Clean Coal Technology Demonstration Program

Funding, Fiscal Year 1996

33

Table IV.2: Clean Coal Technology Demonstration Program

Funding, Fiscal Year 1997

33

Table IV.3: Clean Coal Technology Demonstration Program

Funding, Fiscal Year 1998

33

Abbreviations

DOE Department of Energy

R&D Research and Development

Page 14 GAO/RCED-98-63 Fossil Energy Programs
Page 15 GAO/RCED-98-63 Fossil Energy Programs
Appendix I 

Definitions of Research and Development

Phases

Basic Research: Systematic study directed toward greater knowledge or

understanding of the fundamental aspects of phenomena and of

observable facts without specific applications towards processes or

products in mind.

Applied Research: Systematic study to gain the knowledge or

understanding necessary to determine the means by which a recognized

and specific need may be met.

Development: Systematic application of knowledge toward the production

of useful materials, devices, and systems or methods, including the design,

development, and improvement of prototypes and new processes to meet

specific requirements.

Demonstration: Demonstration of advanced technologies to promote

marketplace entry.

Source: Department of Energy (DOE).

Page 16 GAO/RCED-98-63 Fossil Energy Programs
Appendix II 

DOE’s Fossil Energy Research and

Development Program’s R&D Goals and

Technologies by Budget Category

The following presents brief descriptions of the goals and technologies

associated with DOE’s Fossil Energy Research and Development (R&D)

Program’s R&D-related activities.

Advanced Clean Fuels

Research

The overall goal of the Advanced Clean Fuels Research Subprogram

within the Coal R&D Program is to develop technologies for producing

clean coal and economically competitive coal-derived liquids. Table II.1

provides the specific goals and technologies by budget category.

Table II.1: Goals and Technologies Associated With the Activities Within the Advanced Clean Fuels Research Subprogram

Budget category Goals

New technological processes

or planned areas of work

Coal preparation Develop advanced technologies that remove

minerals, sulfur, and potentially toxic material

from coal before its use.

Biological, electrical, and chemical processes

for separating impurities from coal and

preparing the cleaned coal for final use.

Direct liquefaction Develop commercially viable processes for

converting coal into a liquid that can be used

as a transportation or boiler fuel.

Processes that mix coal with water, oil, and/or

petroleum-based wastes to generate a liquid

fuel.

Indirect liquefaction Develop commercially viable processes for

converting coal into a liquid that can be used

as a transportation or boiler fuel.

Processes that convert coal under high

temperatures and/or pressures into a gas,

which is then converted to a liquid fuel.

Advanced research and environmental

technologies

Improve the information available on and

explore new approaches that could reduce

the costs of coal-derived liquids.

Applied research into the characterization of

coal-derived liquids and the use of advanced

catalysts for coal liquefaction.

Source: DOE’s FY 1998 Congressional Budget Request, Vol. 4, (Feb. 1997), pp. 39-44.

Page 17 GAO/RCED-98-63 Fossil Energy Programs
Appendix II 

DOE’s Fossil Energy Research and

Development Program’s R&D Goals and

Technologies by Budget Category

Advanced

Clean/Efficient Power

Systems

The overall goal of the Advanced Clean/Efficient Power Systems

Subprogram within the Coal R&D Program is to develop coal and natural

gas-fired power plants that produce electricity more cheaply and with less

environmental emissions than current power plants. Table II.2 provides

the specific goals and technologies by budget category.

Table II.2: Goals and Technologies Associated With the Activities Within the Advanced Clean/Efficient Power Systems

Subprogram

Budget category Goals

New technological processes

or planned areas of work

Advanced pulverized coal-fired power

plants

Improve current systems that burn pulverized

coal to achieve efficiencies greater than or

equal to 42% and emissions less than

one-sixth of the New Source Performance

Standards (NSPS).

Power plants called low emission boiler

systems.

Indirect fired cycle Develop more efficient combustion and heat

transfer systems to achieve efficiencies

greater than 45% and emissions less than

one-tenth of NSPS.

High performance power plant systems that

use high-temperature air furnaces integrating

coal combustion and emission control

requirements and combining gas turbines in

the overall power plant.

High-efficiency 

integrated gasification combined cycle

Foster the commercialization of

gasification-based processes that convert

fossil resources to electricity and to steam,

fuels, chemicals, or hydrogen.

Transport and fluid-bed gasifiers, sulfur

sorbents; processes to remove particulates,

nitrogen oxides, and toxic pollutants from gas

streams; and concepts for cost effective

carbon dioxide recovery.

High-efficiency

pressurized fluidized bed

Improve the efficiency of existing

fluidized-bed combustors that burn a mixture

of coal particles and limestone under

atmospheric pressure by combining a gasifier

and gas turbine with pressurized equipment.

Processes to remove sulfur and other

impurities from the hot gases without lowering

the temperature of the gases.

Advanced research and environmental

technologies

Develop insights into advanced coal

gasification processes, the control of power

plant emissions, and the disposal of power

plant wastes.

More efficient and cost effective technologies

to reduce carbon dioxide, sulfur dioxides, and

other emissions from power plants.

Source: DOE’s FY 1998 Congressional Budget Request, Vol. 4, (Feb. 1997), pp. 45-55.

Page 18 GAO/RCED-98-63 Fossil Energy Programs
Appendix II 

DOE’s Fossil Energy Research and

Development Program’s R&D Goals and

Technologies by Budget Category

Advanced Research

and Technology

Development

The overall goal of the Advanced Research and Technology Development

Subprogram within the Coal R&D Program is to understand the

fundamental scientific principles that govern coal combustion and

environmental control processes and to support industry’s efforts to

expand coal exports. Table II.3 provides the specific goals and

technologies by budget category.

Table II.3: Goals and Technologies Associated With the Activities Within the Advanced Research and Technology

Development Subprogram

Budget category Goals

New technological processes

or planned areas of work

Coal utilization science Improve the knowledge available on the

mechanisms involved in advanced coal

combustion and the control of contaminants.

Mathematical models to predict the

performance of advance combustion

systems; research into advanced nitrogen

oxide control and cleaning of

high-temperature filters.

Technology crosscut Develop better analyses of emissions from

power plants, identify innovative technologies

for using coal, and promote international

cooperation and sharing of information on

coal technologies and exports.

Mathematical analyses to predict emissions

from advanced electric systems, studies to

support multiyear planning, research into the

potential for biotechnologies to be used to

convert coal to other fuels, and maintaining

relationships with international organizations.

University coal research Support competitively awarded research

grants to understand the science underlying

coal combustion.

Research on a variety of chemical and

engineering issues.

Materials and components Develop materials that withstand the high

temperatures and corrosive gases generated

by advanced coal based power systems.

High temperature ceramics and filters, metal

alloys, and components of fuel cells.

Source: DOE’s FY 1998 Congressional Budget Request, Vol. 4, (Feb. 1997), pp. 56-64.

Page 19 GAO/RCED-98-63 Fossil Energy Programs
Appendix II 

DOE’s Fossil Energy Research and

Development Program’s R&D Goals and

Technologies by Budget Category

Natural Gas Research The overall goal of the Natural Gas Research Subprogram within the Gas

Program is to ensure a long-term supply and the utilization of natural gas

at reasonable prices by increasing the amount of gas that can be

recovered, stored, delivered, and utilized in a clean, efficient manner.

Table II.4 provides the specific goals and technologies by budget category.

Table II.4: Goals and Technologies Associated With the Activities Within the Natural Gas Research Subprogram

Budget category Goals

New technological processes

or planned areas of work

Exploration and production Develop advanced technologies for efficiently

exploring and recovering gas from different

types of fields.

Develop advanced drilling, completion, and

stimulation systems. Develop reservoir data

systems and imaging and modeling

techniques. Assess the resource and develop

techniques to produce gas from hydrates.

Delivery and storage Improve the effectiveness and reduce the

cost of current storage and delivery facilities

and develop additional capacity to meet

periods of high demand.

Inventory measurement systems, techniques

to identify and prevent damage to wells used

by underground storage facilities, and

improved technologies for storing gas in salt

formations.

Processing Develop technologies to prepare for pipeline

transportation and/or use of gas that is low in

quality or found in remote locations.

Processes to minimize the corrosion of

materials and to extract heat more efficiently

through cooling combustion gases.

Turbines Develop ultra-high-efficient natural gas

turbines for electric power plants with the

lowest emissions.

Utilization of advanced high-temperature

materials and cooling technology, and

advanced low-emission combustion systems.

Environmental Develop credible and scientific information

and advanced technologies to address

high-priority environmental issues.

Risk assessments, new technology, impact

analysis, and workshops to assess and

remediate wastes and emissions from gas

equipment and facilities.

Source: DOE’s FY 1998 Congressional Budget Request, Vol. 4, (Feb. 1997), pp. 65-74.

Page 20 GAO/RCED-98-63 Fossil Energy Programs
Appendix II 

DOE’s Fossil Energy Research and

Development Program’s R&D Goals and

Technologies by Budget Category

Fuel Cells The overall goal of the Fuel Cells Subprogram within the Gas Program is

to develop power plant technology for use in electric utility, on-site

cogeneration, distributed generation, industrial, and commercial sectors

that will be capable of ultra-high efficiencies and no harmful emissions.

Table II.5 provides the specific goals and technologies by budget category.

Table II.5: Goals and Technologies Associated With the Activities Within the Fuel Cells Subprogram

Budget category Goals

New technological processes

or planned areas of work

Advanced research Identify processes and/or materials that will

improve the efficiency and reduce the cost of

fuel cell components.

Electrochemical processes and catalysts

used for chemical conversions and improved

ceramic materials and internal connections.

Molten carbonate fuel cells and solid

oxide fuel cells (Formerly molten

carbonate systems & advanced

concepts)

Develop and demonstrate market entry fuel

cell stationary power plant products; validate

the economic and environmental benefits of

molten carbonate and solid oxide

technologies; promote the development of

70%-efficient fuel cell power plant designs.

Integration of components for

proof-of-concept testing; customer tests of

subscale integrated systems; and eventual

commercial demonstration of full-scale

systems.

Source: DOE’s FY 1998 Congressional Budget Request, Vol. 4, (Feb. 1997), pp. 75-78.

Page 21 GAO/RCED-98-63 Fossil Energy Programs
Appendix II 

DOE’s Fossil Energy Research and

Development Program’s R&D Goals and

Technologies by Budget Category

Oil Technology The overall goal of the Oil Technology Subprogram within the Petroleum

Program is to enhance the efficiency and environmental quality of

domestic oil exploration, recovery, and processing. Table II.6 provides the

specific goals and technologies by budget category.

Table II.6: Goals and Technologies Associated With the Activities Within the Oil Technology Subprogram

Budget category Goals

New technological processes

or planned areas of work

Exploration and production supporting

research

Develop technologies to locate and recover

more oil from domestic reservoirs.

Imaging and diagnostic tools, techniques,

and computer models to better locate oil and

reservoir flow paths that control its

production. Advanced extraction techniques

using gas, heat, chemicals, or microbes to

recover otherwise unproducible oil.

Recovery field demonstrations Increase recovery from groups of known

reservoirs with large volumes of remaining oil.

Through demonstrations, transfer successful

technologies to other oil operators.

Advanced and underutilized techniques for

reservoir characterization, modeling, drilling,

and extraction.

Exploration and production

environmental research

Provide government and industry with

information and science to address

environmental concerns of oil and gas

exploration and production.

Improved environmental compliance

technologies; working with states and the

federal government to streamline regulations;

and the development of scientific and

technical information for risk-based regulation.

Processing research and downstream

operations

Increase the relative volume of high-quality

transportation fuel that can be derived from

heavy crude oils found in Alaska and

California.

Cost-effective and environmentally

acceptable heavy oil and residuum

upgrading processing technologies. Provide

scientific information for improved regulation.

Source: DOE’s FY 1998 Congressional Budget Request, Vol. 4, (Feb. 1997), pp. 79-91.

Cooperative Research

and Development

The goal of the Cooperative R&D Program is to provide technical support to

other programs in the Fossil Energy R&D Program. New technological

processes or planned areas of work include support for research projects

at (1) the University of North Dakota Energy and Environmental Research

Center which provides scientific data on coal combustion to all R&D

programs and (2) the Western Research Institute (WRI), which is the

western center for oil and gas research. WRI provides information to the

oil and gas programs on recovery and environmental issues.

There are no budget categories under this program.

Source: DOE’s FY 1998 Congressional Budget Request, Vol. 4, (Feb. 1997), pp. 98-99.

Page 22 GAO/RCED-98-63 Fossil Energy Programs
Appendix II 

DOE’s Fossil Energy Research and

Development Program’s R&D Goals and

Technologies by Budget Category

Materials The goal of the Materials Subprogram within the Mining R&D Program is to

develop effective processes to produce advanced materials needed in the

next generation of fossil fuel-fired power systems, solve environmental

emissions problems related to fossil energy systems, determine the factors

that limit the service life of materials and increase the cost of power

generation in fossil fuel-fired power systems. New technological processes

or planned areas of work include advanced casting technologies for

high-temperature materials, sequestration of carbon dioxide through

fixation as a carbonate mineral, advanced refractories technologies, and a

database of information and a model to predict the erosion behavior of

materials at elevated temperatures.

Source: DOE’s FY 1998 Congressional Budget Request, Vol. 4 (Feb. 1997), pp. 105-110.

Page 23 GAO/RCED-98-63 Fossil Energy Programs
Appendix III 

Fossil Energy R&D Funding by Phases of

R&D, Fiscal Years 1996 Through 1998

Table III.1: Coal Program Funding, Fiscal Year 1996

Dollars in thousands

Subprogram/budget

category

Basic

research

Applied

research Development Demonstration

Advanced Clean Fuels Research

Coal preparation $323 $2,351 $1,936 0

Direct liquefaction 383 2,797 2,304 0

Indirect liquefaction 401 2,922 2,406 0

Advanced research and

environmental

technologies

245 1,778 1,464 0

Subtotal $1,352 $9,848 $8,110 0

Advanced Clean/Efficient Power Systems

Advanced pulverized

coal-fired

power plants

$740 $5,395 $4,443 0

Indirect fired cycle 838 6,105 5,028 0

High-efficiency integrated

gasification combined

cycle

1,011 11,009 9,566 0

High-efficiency

pressurized

fluidized bed

1,336 9,736 8,018 0

Advanced Research and

environmental

technologies

984 7,172 5,906 0

Kalina cycle 0 1,957 0 0

Subtotal $4,909 $41,374 $32,961 0

Advanced Research and Technology Development

Coal utilization science $3,120 0 0 0

Technology crosscut 3,716 $2,586 0 0

University coal research 4,865 0 0 0

Materials and

components

4,750 2,035 0 0

Subtotal $16,451 $4,621 0 0

Total, Coal Program $22,712 $55,843 $41,071 0

Page 24 GAO/RCED-98-63 Fossil Energy Programs
Appendix III 

Fossil Energy R&D Funding by Phases of

R&D, Fiscal Years 1996 Through 1998

Table III.2: Gas Program Funding, Fiscal Year 1996

Dollars in thousands

Subprogram/budget

category

Basic

research

Applied

research Development Demonstration

Natural Gas Research

Exploration and

production

$1,112 $7,091 $5,702 0

Delivery and storage 85 536 430 0

Turbines 1,878 22,345 11,635 0

Utilization 377 2,402 1,929 0

Environmental and

regulatory

233 1,489 1,197 0

Subtotal $3,685 $33,863 $20,893 0

Fuel Cells

Advanced research $103 $657 $529 0

Molten carbonate systems 1,472 21,945 13,729 0

Advanced concepts 2,047 6,529 5,249 0

Subtotal $3,622 $29,131 $19,507 0

Total, Gas Program $7,307 $62,994 $40,400 0

Table III.3: Petroleum Program Funding, Fiscal Year 1996

Dollars in thousands

Subprogram/budget

category

Basic

research

Applied

research Development Demonstration

Oil Technology

Production supporting

research

$1,156 $17,226 $14,746 0

Recovery field

demonstrations

542 5,637 4,661 0

Exploration and

production

environmental research

270 2,801 2,317 0

Processing research and

downstream operations

279 2,582 2,718 0

Total, Petroleum Program $2,247 $28,246 $24,442 0

Page 25 GAO/RCED-98-63 Fossil Energy Programs
Appendix III 

Fossil Energy R&D Funding by Phases of

R&D, Fiscal Years 1996 Through 1998

Table III.4: Other Fossil R&D Funding, Fiscal Year 1996

Dollars in thousands

Subprogram/budget

category

Basic

research

Applied

research Development Demonstration

Cooperative Research and

Development $1,538 $1,538 $3,076 0

Mining R&D 4,998 0 0 0

Total $6,536 $1,538 $3,076 0

Total, Fossil Energy R&D $38,802 $148,621 $108,989 0

Page 26 GAO/RCED-98-63 Fossil Energy Programs
Appendix III 

Fossil Energy R&D Funding by Phases of

R&D, Fiscal Years 1996 Through 1998

Table III.5: Coal Program Funding, Fiscal Year 1997

Dollars in thousands

Subprogram/budget

category

Basic

research

Applied

research Development Demonstration

Advanced Clean Fuels

Coal preparation $340 $3,651 $1,108 $0

Direct liquefaction 423 3,755 879 0

Indirect liquefaction 475 2,047 1,730 0

Advanced research and

environmental

technologies

65 1,184 497 0

Subtotal $1,303 $10,637 $4,214 0

Advanced Clean/Efficient Power Systems

Advanced pulverized

coal-fired power plant

$570 $4,845 $4,585 0

Indirect fired cycle 600 6,103 3,802 0

High-efficiency integrated

gasification combined

cycle

1,350 11,475 9,675 0

High-efficiency

pressurized

fluidized bed

1,071 9,103 7,676 0

Advanced research and

environmental

technologies

565 5,801 3,048 0

Kalina cycle 0 0 0 0

Subtotal $4,156 $37,327 $28,786 0

Advanced Research and

Technology Development

Coal utilization science $3,154 0 0 0

Technology crosscut 2,795 $2,463 0 0

University coal research 3,941 0 0 0

Materials and

components

3,140 1,930 0 0

Subtotal $13,030 $4,393 0 0

Total, Coal Program $18,489 $52,357 $33,000 0

Page 27 GAO/RCED-98-63 Fossil Energy Programs
Appendix III 

Fossil Energy R&D Funding by Phases of

R&D, Fiscal Years 1996 Through 1998

Table III.6: Gas Program Funding, Fiscal Year 1997

Dollars in thousands

Subprogram/budget

category

Basic

research

Applied

research Development Demonstration

Natural Gas Research

Exploration and

production

$1,374 $7,264 $5,485 0

Delivery and storage 100 543 357 0

Turbines 3,750 28,606 16,244 0

Utilization 672 2,350 3,319 0

Environmental and

regulatory

210 1,568 1,372 0

Subtotal $6,106 $40,331 $26,777 0

Fuel cells

Advanced research $130 $592 $496 0

Molten carbonate systems 2,547 19,557 15,295 0

Advanced concepts 1,585 6,280 4,635 0

Subtotal $4,262 $26,429 $20,426 0

Total, Gas Program $10,368 $66,760 $47,203 0

Table III.7: Petroleum Program Funding, Fiscal Year 1997

Dollars in thousands

Subprogram/budget

category

Basic

research

Applied

research Development Demonstration

Oil Technology

Exploration and

production 

supporting research

$1,650 $17,464 $10,409 0

Recovery field

demonstrations

412 3,511 1,973 0

Exploration and

production

environmental research

490 2,033 2,913 0

Processing research and

downstream operations 524 2,994 1,903 0

Total, Petroleum Program $3,076 $26,002 $17,198 0

Page 28 GAO/RCED-98-63 Fossil Energy Programs
Appendix III 

Fossil Energy R&D Funding by Phases of

R&D, Fiscal Years 1996 Through 1998

Table III.8: Other Fossil Energy R&D Funding, Fiscal Year 1997

Dollars in thousands

Subprogram/budget

category

Basic

research

Applied

research Development Demonstration

Cooperative Research and

Development $1,391 $1,391 $2,784 0

Mining R&D 5,953 0 0 0

Total $7,344 $1,391 $2,784 0

Total, Fossil Energy R&D $37,886 $146,510 $100,185 0

Page 29 GAO/RCED-98-63 Fossil Energy Programs
Appendix III 

Fossil Energy R&D Funding by Phases of

R&D, Fiscal Years 1996 Through 1998

Table III.9: Coal Program Funding, Fiscal Year 1998

Dollars in thousands

Subprogram/budget

category

Basic

research

Applied

research Development Demonstration

Advanced Clean Fuels Research

Coal preparation $417 $3,312 $1,251 0

Direct liquefaction 579 3,927 1,092 0

Indirect liquefaction 481 2,287 1,762 0

Advanced research and

environmental

technologies

45 1,028 418 0

Subtotal $1,522 $10,554 $4,523 0

Advanced Clean/Efficient Power Systems

Advanced pulverized

coal-fired

power plant

$328 $10,676 $2,678 0

Indirect fired cycle 656 2,497 4,198 0

High-efficiency integrated

gasification combined

cycle

2,458 12,147 7,617 0

High-efficiency

pressurized

fluidized bed

1,072 11,154 5,887 0

Advanced research and

environmental

technologies

584 8,566 3,186 0

Kalina cycle 0 391 0 0

Subtotal $5,098 $45,431 $23,566 0

Advanced Research and Technology Development

Coal utilization science $3,073 0 0 0

Technology crosscut 2,312 $960 0 0

University coal research 3,132 0 0 0

Materials and

components

3,527 1,979 0 0

Subtotal $12,044 $2,939 0 0

Total, Coal Program $18,664 $58,924 $28,089 $0

Page 30 GAO/RCED-98-63 Fossil Energy Programs
Appendix III 

Fossil Energy R&D Funding by Phases of

R&D, Fiscal Years 1996 Through 1998

Table III.10: Gas Program Funding, Fiscal Year 1998

Dollars in thousands

Subprogram/budget

category

Basic

research

Applied

research Development Demonstration

Natural Gas Research

Exploration and

production $1,489 $6,492 $5,984 0

Delivery and storage 99 519 388 0

Turbines 3,152 23,473 16,889 0

Utilization 481 3,439 2,875 0

Environmental and

regulatory

462 611 2,001 0

Subtotal $5,683 $34,534 $28,137 0

Fuel Cells

Advanced research $133 $617 $560 0

Molten carbonate systems 0 0 0 0

Advanced concepts 0 0 0 0

Fuel cell systems 1,467 8,079 28,563 0

Subtotal $1,600 $8,696 $29,123 0

Total, Gas Program $7,283 $43,230 $57,260 0

Table III.11: Petroleum Program Funding, Fiscal Year 1998

Dollars in thousands

Subprogram/budget

category

Basic

research

Applied

research Development Demonstration

Oil Technology

Exploration and

production 

supporting research

$946 $10,810 $19,155 0

Recovery field

demonstrations

484 3,115 3,320 0

Exploration and

production

environmental research

513 2,484 2,988 0

Processing research and

downstream operations 474 2,082 2,944 0

Total, Petroleum Program $2,417 $18,491 $28,407 0

Page 31 GAO/RCED-98-63 Fossil Energy Programs
Appendix III 

Fossil Energy R&D Funding by Phases of

R&D, Fiscal Years 1996 Through 1998

Table III.12: Other Fossil R&D Funding, Fiscal Year 1998

Dollars in thousands

Subprogram/budget

category

Basic

research

Applied

research Development Demonstration

Cooperative Research and

Development $1,459 $1,463 $2,918 0

Mining R&D 4,965 0 0 0

Total $6,424 $1,463 $2,918 0

Total, Fossil Energy R&D $34,788 $122,108 $116,674 0

Page 32 GAO/RCED-98-63 Fossil Energy Programs
Appendix IV 

Clean Coal Technology Demonstration

Program Funding, by Phases of R&D, Fiscal

Years 1996 Through 1998

Table IV.1: Clean Coal Technology

Demonstration Program Funding,

Fiscal Year 1996

Dollars in thousands

Subprogram/

budget category

Basic

research

Applied

research Development Demonstration

Clean Coal Technology

Advanced

electric power

generation

0 0 0 $12,641

Clean fuel 0 0 0 0

Environmental

control devices 0 0 0 16,721

Industrial

applications

0 0 0 1,195

Total 0 0 0 $30,557

Table IV.2: Clean Coal Technology

Demonstration Program Funding,

Fiscal Year 1997

Dollars in thousands

Subprogram/

budget category

Basic

research

Applied

research Development Demonstration

Clean Coal Technology

Advanced

electric power

generation 0 0 0 $103,168

Clean fuel 0 0 0 67,138

Environmental

control devices

0 0

0

2,500

Industrial

applications

0 0

0

9,403

Total 0 0 0 $182,209

Table IV.3: Clean Coal Technology

Demonstration Program Funding,

Fiscal Year 1998

Subprogram/

budget category

Basic

research

Applied

research Development Demonstration

Clean Coal Technology

Advanced

electric power

generation

0 0 0 $194,562

Clean fuel 0 0 0 9,510

Environmental

control devices

0 0 0 0

Industrial

applications

0 0 0 0

Total 0 0 0 $204,072

Page 33 GAO/RCED-98-63 Fossil Energy Programs
Appendix V 

Description of Non-R&D Fossil Energy

Programs

Non-R&D programs pay for salaries and benefits, travel, the working capital

fund for administrative services, and other non-R&D activities, including the

following.

Environmental Restoration: Activities designed to protect workers and the

public from exposure to hazardous conditions and material through the

cleanup of R&D sites, site revegetation, and assessments/site investigations

of inactive projects.

Coal Technology Export: Coal and technology export programs and

promotion initiatives, trade mission assistance and other activities to

promote the export of clean coal technologies, and the coordination of all

fossil energy international crosscutting activities.1

International Program Support: Analysis, studies, and technical

evaluations of ongoing and planned bilateral and multilateral activities and

support for international initiatives that leverage fossil energy resources.

International involvements are limited to those selected areas where it has

been determined that the United States will benefit at least to the extent it

gives on a quid pro quo basis.

Historically Black Colleges and Universities, Education and Training:

Training to accelerate workforce diversity in fossil fuel related

technologies.

Plant and Capital Equipment: General plant projects at the Federal Energy

Technology Center sites and the Bartlesville Project Office, including

repairs, improvements, alterations, and additions.

Fuels Program: Processing of electricity export applications, participation

in proceedings of the Federal Energy Regulatory Commission, and

processing of natural gas import/export applications.

1

Coal technology export; international program support; and education and training activities at

historically black colleges and universities are funded under DOE’s coal R&D program.

Page 34 GAO/RCED-98-63 Fossil Energy Programs
Appendix VI 

Companies Receiving Fossil Energy R&D

and Clean Coal Technology Demonstration

Awards Over $1 Million

Dollars in millions

Awardeea

Description of

award

Government

share

Industry

share

Total

share

Westinghouse Electric Corp.

Utility advanced turbines $119.1 $146.9 $266

High-temperature solid

oxide fuel cell

92.3 77.8 170.1

Solid oxide fuel cell 82.9 115.5 198.4

Filter assessment 2.1 0 2.1

Subtotal $296.4 $340.2 $636.6

Wabash River Coal

Gasification Repowering

Project Joint Venture

Integrated gasification

demonstration

219.1 219.1 438.2

City of Lakeland, Fla.

McIntosh Unit 4B

demonstration

$109.2 $109.5 $218.7

McIntosh Unit 4A

demonstration

93.3 93.3 186.6

Subtotal $202.5 $202.8 $405.3

Clean Energy Partners, L.P. Combined fuel cell and

gasification

183.3 657.8 841.1

Tampa Electric Co. Integrated gas

combined cycle

171 172.5 343.5

Sierra Pacific Power Co. Integrated gas

combined cycle

168 167.9 335.9

Air Products and Chemicals

Liquid methanol process $92.7 $121 $213.7

Synthetic gas products 28.6 7.1 35.7

ITM syngas technology 25.6 54.8 80.4

Slurry bubble reactor 3.9 1 4.9

Subtotal $150.8 $183.9 $334.7

CPICOR Management Co.,

L.L.C.

Advanced iron-making

process

149.5 916.3 1065.8

Foster Wheeler

Development Corp.

High-performance

system

127.9 71.6 199.5

General Electric Co.

Utility advanced turbines $120 $263.7 $383.7

Advanced sorbent

development

1.1 0 1.1

Subtotal $121.1 $263.7 $384.8

Alaska Industrial

Development and Export

Authority

Advanced combustor 117.3 124.8 242.1

(continued)

Page 35 GAO/RCED-98-63 Fossil Energy Programs
Appendix VI 

Companies Receiving Fossil Energy R&D

and Clean Coal Technology Demonstration

Awards Over $1 Million

Dollars in millions

Awardeea

Description of

award

Government

share

Industry

share

Total

share

Energy Research Corp. Molten carbonate fuel cell 101.7 39.7 141.4

United Technologies Corp.

High-performance

system

$89.4 $47.4 $136.8

Humid air turbine 2.2 1.9 4.1

Subtotal $91.6 $49.3 $140.9

M-C Power Corp.

Molten carbonate fuel cell $71 $33.4 $104.4

Molten carbonate fuel cell 16.7 12.8 29.5

Subtotal $87.7 $46.2 $133.9

New York State Electric and Gas Corp.

Milliken demonstration $72.2 $198.3 $270.5

Micronized coal

reburning

2.7 6.4 9.1

Subtotal $74.9 $204.7 $279.6

York County Energy Partners Atmospheric circulating

fluidized bed

74.7 304.9 379.6

The Ohio Power Co. Tidd pressurized

fluidized-bed

combustion

demonstration

67 122.9 189.9

Pure Air on the Lake, L.P. Advanced flue gas

desulfurization

63.9 87.8 151.7

Babcock & Wilcox Co.

Low-emission boiler

systems

$14.8 $3.6 $18.4

Emission control

development

5.3 6.5 11.8

Low-emission boiler

system demonstration

7.6 11.8 19.4

Coal reburning for

nitrogen oxide control

6.3 7.3 13.6

Flue gas cleanup

demonstration

6.1 7.2 13.3

Low nitrogen oxide cell

burner retrofit

5.4 5.8 11.2

Multiple pollutant

removals

2.6 1.2 3.8

Subtotal $48.1 $43.4 $91.5

ENCOAL Corp. Coal gasification

demonstration

45.3 45.4 90.7

(continued)

Page 36 GAO/RCED-98-63 Fossil Energy Programs
Appendix VI 

Companies Receiving Fossil Energy R&D

and Clean Coal Technology Demonstration

Awards Over $1 Million

Dollars in millions

Awardeea

Description of

award

Government

share

Industry

share

Total

share

NOXCO Corp. Sulfur dioxide/nitrogen

oxide removal

demonstration

42.8 43.3 86.1

Riley Stoker Corp. Low-emission boiler

systems

44.3 12.1 56.4

Rosebud SynCoal

Partnership

Coal cleaning and

conversion

43.1 62.6 105.7

Southern Company Services

CT-121 flue gas

desulfurization

$21.1 $22 $43.1

Selective catalytic

reduction techniques

9.4 13.8 23.2

Advanced wall-fired

combustion

6.6 9.3 15.9

Advanced tangentially

fired combustion

4.4 4.8 9.2

Subtotal $41.5 $49.9 $91.4

Custom Coals International Advanced coal-cleaning

facilities

38 49.4 87.4

Combustion Engineering

Low-emission boiler

systems

$32.2 $24.1 $56.3

Air toxics control 1.6 0.8 2.4

Subtotal $33.8 $24.9 $58.7

Bethlehem Steel Corp. Granulated coal in blast

furnace

31.8 162.5 194.3

Energy & Environmental Research

Gas reburning and

sorbent injection

$18.7 $18.9 $37.6

Gas reburning and

wall-fired burners

8.9 8.9 17.8

Toxic emissions 2.1 0 2.1

High-efficiency nitrogen

oxide control

1.6 0.7 2.3

Subtotal $31.3 $28.5 $59.8

Fuel Cell Engineering Co. Molten carbonate fuel cell 28.8 24.8 53.6

Hydrocarbon Technologies

Proof-of-concept facility $21.9 $5.2 $27.1

Multistage liquefaction 3.9 0.4 4.3

Bench-scale

coprocessing

2.7 0.2 2.9

(continued)

Page 37 GAO/RCED-98-63 Fossil Energy Programs
Appendix VI 

Companies Receiving Fossil Energy R&D

and Clean Coal Technology Demonstration

Awards Over $1 Million

Dollars in millions

Awardeea

Description of

award

Government

share

Industry

share

Total

share

Subtotal $28.5 $5.8 $34.3

North Dakota University

Low-rank coal (II) $12.7 $14.1 $26.8

Low-rank coal (I) 11.7 0 11.7

Hybrid particulates

collector

1.3 0.3 1.6

Trace element emissions 1.3 0 1.3

Subtotal $27 $14.4 $41.4

Arthur D. Little Inc.

Coal diesel combined

cycle

$23.8 $23.8 $47.6

Catalytic sulfur dioxide

reduction

1.5 0.3 1.8

Subtotal $25.3 $24.1 $49.4

Western Research Inst.

Joint projects 13.1 18.3 31.4

Base research program 7.5 0 7.5

Subtotal $20.6 $18.3 $38.9

Clemson University Advanced gas turbines 19.6 1.6 21.2

ThermoChem, Inc. Steam gasification of coal 18.7 18.6 37.3

Tristate Generation and

Transmission Assn.

Nucla fluidized bed

demonstration

17.1 29.4 46.5

Public Service Co. of Colorado

Integrated emission

control

$13.7 $13.7 $27.4

Mercury control 2.2 0.5 2.7

Subtotal $15.9 $14.2 $30.1

ABB Environmental Systems SNOX flue gas cleaning 15.7 15.7 31.4

Amax R & D Inc. Advanced fine coal

cleaning

13.6 1.7 15.3

Radian Corp.

Control of hazardous air

pollutants

$2.5 $1 $3.5

Clear liquor scrubbing 2.4 1 3.4

Toxic emissions 1.7 0 1.7

Subtotal $13.2 $4.0 $17.2

Bechtel National Inc.

Flue gas desulfurization $5.2 $5.2 $10.4

Refining coal liquids 4.9 0 4.9

(continued)

Page 38 GAO/RCED-98-63 Fossil Energy Programs
Appendix VI 

Companies Receiving Fossil Energy R&D

and Clean Coal Technology Demonstration

Awards Over $1 Million

Dollars in millions

Awardeea

Description of

award

Government

share

Industry

share

Total

share

Fischer-Tropsch

technology

2.9 0.1 3

Subtotal $13 $5.3 $18.3

ABB Combustion

Engineering Inc.

Coal evaluation software 10.9 10.8 21.7

LIFAC-North America Sorbent injection

desulfurization

10.6 10.8 21.4

Consortium for Fossil Fuels Coal liquefaction 9.9 8.5 18.4

Hague International Ceramic heater for

turbines

9.8 2.4 12.2

Kentucky Research Foundation

Coal liquefaction studies $6.6 $0 $6.6

Iron Fischer-Tropsch

catalyst

3.2 0 3.2

Subtotal $9.8 $0 $9.8

University of Tenn. MHD facilities completion 9.4 0 9.4

Phillips Petroleum Co.

Carbon dioxide flood of

oil reservoir

$6.9 $14.3 $21.2

Sorbent development 1.1 0 1.1

Subtotal 8 14.3 22.3

Strata Production Co. Advanced oil recovery 7.8 10.5 18.3

Donlee Technologies Inc. Cofiring of coal and

wastes

7.6 0.5 8.1

Union Pacific Resources Green River Basin 7.3 4.4 11.7

Dow Corning Corp.

Methyl chloride from

methane (II)

$5.6 $10 $15.6

Methyl chloride from

methane (I)

1.4 1.4 2.8

Subtotal $7 $11.4 $18.4

University of Oklahoma Fluid characterization

facility

6.9 5.9 12.8

ICF Resources Inc. Systems analysis model 6 0 6

Passamaquoddy Tribe Cement kiln flue gas

recovery

6 11.8 17.8

Advanced Resources International

Gas detection $3.5 $0.5 $4

Fracture stimulation 1.9 0 1.9

Subtotal $5.4 $0.5 $5.9

(continued)

Page 39 GAO/RCED-98-63 Fossil Energy Programs
Appendix VI 

Companies Receiving Fossil Energy R&D

and Clean Coal Technology Demonstration

Awards Over $1 Million

Dollars in millions

Awardeea

Description of

award

Government

share

Industry

share

Total

share

Parker and Parsley

Development

Carbon dioxide gravity

drainage

5.2 8.0 13.2

Stanford University

Heavy oil recovery $2.1 $0 $2.1

Horizontal drilling 2.1 0 2.1

Gas injection

performance

1 0.3 1.3

Subtotal $5.2 $0.3 $5.5

Research Triangle Institute

Hot gas desulfurization

(bench-scale)

$2.6 $0 $2.6

Acrylates and

methacrylates

1.3 0.4 1.7

Hot gas desulfurization

concepts

1.2 0 1.2

Subtotal $5.1 $0.4 $5.5

CER Corp. Field fracturing project 4.8 4.7 9.5

S. Powell Construction Co.

Facility construction $3.7 $0 $3.7

Construction of syngas

generator

1 0 1

Subtotal $4.7 $0 $4.7

Battelle Memorial Institute

Toxics from coal $3.1 $0.1 $3.2

Characterization of air

toxics

1.4 0 1.4

Subtotal $4.5 $0.1 $4.6

BPF Inc. Development of norm 4.3 0 4.3

Maurer Engineering Inc.

Tubing drilling system $3 $1.9 $4.9

Underbalanced drilling

products

1 0.2 1.2

Subtotal $4 $2.1 $6.1

(continued)

Page 40 GAO/RCED-98-63 Fossil Energy Programs
Appendix VI 

Companies Receiving Fossil Energy R&D

and Clean Coal Technology Demonstration

Awards Over $1 Million

Dollars in millions

Awardeea

Description of

award

Government

share

Industry

share

Total

share

Atlantic Richfield Co. Oil recovery techniques 4.0 3.9 7.9

ABB Power Generation Turbine research 3.6 0.9 4.5

Physical Sciences Inc. Toxics from coal 3.4 0.9 4.3

Electric Power Research Institute

High sulfur test facility $2 $8.5 $10.5

Utility biomass cofiring 1.4 4 5.4

Subtotal $3.4 $12.5 $15.9

Coleman Research Corp. Gas detection 3.3 0 3.3

Energy & Environmental

Analysis

Gas information system 3.2 0 3.2

Virginia Polytech Institute

Hazardous air pollutant

precursors removal

$1.6 $0.4 $2

Testing of coal separator 1.3 0.4 1.7

Subtotal $2.9 $0.8 $3.7

Gas Technology Information

Institute

International center for

gas

2.7 0 2.7

Roy Weston Inc. Toxic emissions 2.7 0.1 2.8

Carnegie-Mellon University

Coal gasification systems $1.4 $0 $1.4

Environmental control

model

1.3 0 1.3

Subtotal $2.7 $0 $2.7

The M. W. Kellogg Co. Hot gas desulfurization

facility

2.5 0 2.5

AirPol, Inc. Gas suspension

absorption

2.3 5.4 7.7

Novatek Mud drilling system 2.3 1 3.3

Southern Research Institute Hot gas cleanup 2.2 0 2.2

University of Utah Increased heavy oil

recovery

2.2 3.6 5.8

Southern Illinois University Desulfurization products 2.1 1.1 3.2

Pacific Operators Offshore Class III oil recovery 2 2.2 4.2

Smith International Steerable air percussion 2 1.1 3.1

Hughes Eastern Corp. Using microflora near oil

formation

1.9 2 3.9

James Bunger & Associates Shale oil enhancement 1.9 0 1.9

CQ Inc. Hazardous air pollutant

removal

1.8 0.7 2.5

(continued)

Page 41 GAO/RCED-98-63 Fossil Energy Programs
Appendix VI 

Companies Receiving Fossil Energy R&D

and Clean Coal Technology Demonstration

Awards Over $1 Million

Dollars in millions

Awardeea

Description of

award

Government

share

Industry

share

Total

share

Consolidated Coal Co. Coal liquefaction 2.5 0 2.5

Tulane University US/China technology

center

1.8 0 1.8

Advanced Technology

Systems

Sampling and analyzing

methods

1.7 0 1.7

Gas Technology Institute Evaluation of contractors 1.7 3.2 4.9

Department of Interior U.S. Geological Survey

studies

1.7 0 1.7

ADA Technologies Inc. Mercury vapor removal 1.6 0.3 1.9

Flowdril Corp. Slim-hole high pressure

pump

1.6 2.4 4

LSR Technologies Particulate air toxic

control

1.6 0.7 2.3

Sperry-Sun Drilling Underbalanced drilling 1.6 0.7 2.3

Tempress Technologies Hydraulic pulse drilling 1.6 0.9 2.5

University of Kansas Improved oil recovery 1.6 1.6 3.2

American Geological

Institute

National data system 1.5 0.4 1.9

Interstate Oil Compact State regulations 1.5 0.4 1.9

Mitre Corp. Research guidance

studies

1.5 0 1.5

Petroleum Consulting CO2/sand fracturing 1.5 0 1.5

West Virginia University

Research

Ash disposal in mines 1.5 0.6 2.1

Advanced Fuel Research Fossil fuel conversion 1.4 0 1.4

State of Oklahoma Data management

system

1.4 0 1.4

Conoco Coal Development Coal liquefaction concept 1.3 0.3 1.6

Dravolime Co. Dry FGD by-products 1.3 3 4.3

Pennsylvania State

University

Coal sample bank and

database

1.3 0 1.3

Texas Railroad Commission Data management

systems

1.2 0 1.2

(continued)

Page 42 GAO/RCED-98-63 Fossil Energy Programs
Appendix VI 

Companies Receiving Fossil Energy R&D

and Clean Coal Technology Demonstration

Awards Over $1 Million

Dollars in millions

Awardeea

Description of

award

Government

share

Industry

share

Total

share

University of Wyoming Riverton dome

demonstration

1.2 1.7 2.9

Fisher-Klosterman, Inc. Coal reactors 1.1 0 1.1

Michigan Technologies Dundee foundation oil

recovery

1.1 1.6 2.7

Little Bear Lab Inc. Removal of hazardous

air pollutant precursors

1 0.3 1.3

Underground Injection Co. Implement data system 1 0 1

aCompanies receiving awards from DOE may represent or lead teams of multiple contractors. In

these cases, the lead company may divide the government’s share of costs among team

members.

(141133) Page 43 GAO/RCED-98-63 Fossil Energy Programs
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