American Electric Power Co., one of the largest electric utilities in the U.S., on Friday said it was selected by the Department of Energy to receive funding to cover some costs of installing a commercial-scale carbon dioxide capture and storage system in West Virginia.
The company is requesting $334 million, which will cover about half of the estimated cost of the project, which will be located on its Mountaineer coal-fired power plant in New Haven, West Virginia.
The system will capture an estimated 1.5 million metric tons of captured carbon dioxide per year, which will be treated and compressed, then injected into suitable geological formations about 1.5 miles underground for permanent storage.
AEP expects the system to begin commercial operation in 2015.
Shares of the company fell 68 cents, or 2 percent, to $33.36 in afternoon trading.