RWE, BASF, Linde developing new CO2 capture process

Three German powerhouses announced a deal today to jointly develop new processes for carbon dioxide capture in coal-fired power plants.

Essen-based RWE Power, Ludwigshafen's BASF (OTC: BASFY), and the Linde Group in Munich are aiming to remove 90 percent of CO2 from combustion gas in power plants.

RWE Power is the power generation division of energy conglomerate RWE (OTC: RWEOY).

"We are confident that, together with our partners, we will soon be developing the process of CO2 capture to commercial maturity so that this technology can be deployed in new and existing modern coal-fired power plants in the future," said Johannes Lambertz, board member of RWE Power.

The companies expect to have a commercial application by 2020.

"By entering into this collaboration with RWE Power and Linde, we are contributing our wide-ranging expertise in CO2 capture technology. Our research is seeking to find a suitable solvent for the efficient capture of CO2," said Stefan Marcinowski, board member of BASF, the world's largest chemical company.

The group plans to construct and operate a pilot facility at the lignite-fired power plant of RWE Power in Niederaussem to test new developments and solvents from BASF for the capture of CO2, also known as CO2 scrubbing.

Linde, the world's largest producer of industrial and medical gases, will be responsible for the engineering and construction of the pilot plant.

Aldo Belloni, executive board member of Linde, said, "Our activities include continuous efficiency improvements of our plant designs for the benefit of our customers, CO2 capture methods as well as expedient recycling systems and the production of environmentally friendly alternative fuels."

Once pilot tests are complete, a subsequent demonstration plant is expected to be built in 2010.

RWE Power said it has budgeted $113.5 million for the development project, including the construction and operation of the pilot facility and demonstration plant.

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