Reuters quoted Duke Energy as saying that design modifications will increase to USD 2.5 billion the estimated cost of its Edwardsport coal gasification power plant under construction in southwest Indiana.

Duke told Indiana utility regulators in a filing that the increase of USD 150 million is due to a need for more steel, piping and other material needed for the 630 MW integrated gasification combined cycle project.

Mr Jim Stanley president of Duke Energy Indiana said that "As engineering progressed, the scope of the project has increased."

IGCC technology uses a gasification system to convert coal into a synthesis gas that is processed to remove sulfur, mercury and ash before being sent to a traditional combined cycle power plant to produce electricity.

The utility also asked the Indiana Utility Regulatory to hold a proceeding by next March when most engineering work will be complete so that the company can further revise the cost estimate.

Duke said that regulators already approved USD 365 million hike in the project's price tag earlier this year, an increase also related to materials and rising labor costs.

The Edward sport plant will boost the average customer's costs by about 18% which Duke will phase in between now and 2013. Duke is also working to obtain regulatory approval to study the capture and permanent storage of a portion of the plant's carbon dioxide emissions in underground formations.

(Sourced from Reuters)