“Diamond Vault will put Cleco at the forefront of environmentally responsible power generation,” said the President and CEO of Cleco Corporate Holdings LLC, Bill Fontenot mentioned.
“Our organization has been honored to work in conjunction with Louisiana Economic Development (LED) to bring this innovative technology to our state through the FEED study, which will advance the energy industry and support the health and the well-being of our communities,” says Fontenot.
Diamond Vault will be one of the first US projects to capture existing CO2 emissions from a power plant and sequester them in geological formations. Madison 3 already has low sulfur dioxide, nitrogen oxides and particulate emissions due to its use of advanced combustion technology and pollution control measures. Installing CCS technology through Diamond Vault will ensure that Madison 3 remains a state-of-the-art solid fuel plant.
Diamond Vault is expected to create an average of 1,100 direct construction jobs over a three-year period and 30-40 new permanent positions. Statewide, USL economist dr. Loren Scott estimates that Diamond Vault, during the construction period, will create an average of 2,900 jobs each year, inject $2.7 billion in increasing sales and household income in the Louisiana economy and production $50 million in increasing state tax revenue. Construction of Diamond Vault is expected to begin in 2025 and commercial operation is planned for 2028.
The FEED study for Diamond Vault will take approximately 18 months and is expected to cost approximately $12 million. Cleco got a $9 million Congressional appropriations will be administered and disbursed by the LED, which will help cover the cost of the FEED study. Following the study, Cleco plans to increase capital funding for the project by approximately $900 million through tax credits, Department of Energy grants and private equity investments.
Diamond Vault was unveiled in a press announcement on April 11 and has been planned by Cleco with the support of political leaders and LED for over a year. United States Senator Bill CassidyMD was instrumental in moving the project forward through its sponsorship of funding for the FEED study in the enacted 2022 Omnibus Appropriations Bill.
Cleco has retained the help of experts to carry out the Diamond Vault project. Sargent & Lundy, a Chicago-a global power and energy design firm, acts as the owner’s engineer. Battelle, a private, not-for-profit organization dedicated to scientific and technological commercialization and advancement, advises on geological storage capacity characterization, permits and storage operations.
“Our customers deserve a world where everyone can access clean energy. We are investing in these efficiency and optimization technologies today, so that our communities can experience a brighter future tomorrow,” Fontenot said.
About Cleco Power LLC
Cleco Power is a regulated electric utility company that owns nine generator sets with a rated capacity of 3,035 MW and serves approximately 291,000 customers in Louisiana through its retail business and provides wholesale electricity in Louisiana and Mississippi. For more information about Cleco, visit www.cleco.com.
Additional resources available for download at https://bit.ly/3DWKkX3
- Full video of the announcement event in 720p
- Diamond Vault Project Logo
- High resolution pictures
- Additional citations for media use
SOURCE Cleco Power LLC