This is an excerpt from EERE Network News, a weekly electronic newsletter.

February 15, 2006

BP and Edison Plan a 500-Megawatt Hydrogen Project in California

BP and the Edison Mission Group announced on February 10th that they plan to build a $1-billion hydrogen-fueled power plant in southern California. The 500-megawatt plant would be located next to BP's Carson refinery, about 20 miles south of Los Angeles, and would generate hydrogen from petroleum coke, a byproduct of the refining process. Carbon dioxide would also be generated by the process and will be separated, transported to an operating oilfield, and injected into the reservoir to stimulate more oil production. The hydrogen will be burned in a gas turbine to produce electricity.

Although the project remains largely speculative because of the many agencies, companies, and other stakeholders that would be involved, the companies hope to complete detailed engineering and commercial studies this year, finalize project investment decisions in 2008, and bring the new power plant online by 2011. The plant is the second large-scale hydrogen project announced by BP; the first is a 350-megawatt project fueled with natural gas and located in Scotland. See the press release from Edison International—the parent company for the Edison Mission Group—and the project description on the BP Alternative Energy Web site.