Kemper Project

Kemper Project

Company type	Subsidiary project
Industry	Electrical power generation
Founded	2010
Founder	Mississippi Power (a Southern Company subsidiary)
Headquarters	Kemper County , United States
Area served	Mississippi, United States
Key people	Southern Company, Mississippi Power
Products	Electrical power
Parent	Southern Company

The Kemper Project, also referred to as the Kemper County energy facility or Plant Ratcliffe, is an electrical power station fueled by natural gas, located in Kemper County, Mississippi. Construction began in 2010 under Mississippi Power, a Southern Company subsidiary. Initially planned as a coal-powered plant utilizing "clean coal" technology, it was aligned with President Obama's Climate Plan and considered for additional backing by both Congress and the Trump Administration. Had it operated on coal as intended, Kemper would have been the first large-scale facility to integrate gasification with carbon capture technology.

The project encountered considerable management difficulties. Originally slated to start operations in May 2014 with a budget of $2.4 billion, it remained unfinished by June 2017, with expenses soaring to $7.5 billion. An analysis by the Sierra Club ranked Kemper as the most costly U.S. power plant ever constructed relative to its output capacity. In June 2017, Southern Company and Mississippi Power announced a transition to solely natural gas fuel to mitigate further financial overruns.

Background

Situated approximately 30 miles north of Meridian, Kemper County is a small eastern Mississippi county chosen for the plant to capitalize on local brown coal (lignite), an underutilized resource, and to improve electrical reliability within Mississippi through geographic diversification. Headquartered in Gulfport, Mississippi Power provides electricity to key cities such as Gulfport, Biloxi, Hattiesburg, Meridian, Pascagoula, Columbia, Laurel, Waveland, Lucedale, and Picayune.

The Kemper Project was designed by Mississippi Power to produce cleaner energy by employing IGCC alongside carbon capture technologies, aiming to drastically reduce emissions typically associated with conventional coal plants. Southern Company, the parent organization of Mississippi Power, characterized the project as a landmark endeavor expected to shape future coal-based electricity generation.

On June 3, 2010, the Mississippi Public Service Commission granted approval for the project, with Governor Haley Barbour present at the groundbreaking ceremony.

Timeline

• 2008: Initial conceptual design phase
• 2010: Construction commences following approval from Mississippi Public Service Commission
• 2011: Groundwork and foundation installation begin
• 2012: Above-ground construction starts
• 2013

• August: Connection established for site's 230 kilovolt transmission lines
• September: First firing of the plant’s combustion turbine (CT) occurs
• October: Combined cycle unit synchronized with the electrical grid
• December: Final transmission line energized and operational

• 2014

• July: Pneumatic testing of gasifiers converting lignite into synthetic gas succeeds; combined cycle unit tested and enters commercial service—highlighted as a major achievement by Mississippi Power
• October: Projected in-service date postponed to early 2016; estimated cost escalates to $6.1 billion
• December: Completion of 48 “steam blows” conducted to verify pipe integrity

• 2015

• March: Gasifiers successfully fired for first time; these convert lignite coal into syngas for power generation
• May: South Mississippi Electric Power Association withdraws from acquiring a 15% ownership stake in the project
• September: Completion delayed beyond April 19, 2016; company obligated to repay $234 million in investment tax credits due to delays

• 2016

• March: Southern Company reports rising costs attributed to repairs and modifications; total expenses reach $6.6 billion
• July & September: Both gasifiers begin producing syngas consistently
• October: Plant generates electricity utilizing syngas from the initial gasifier

• 2017

• March: Leak detection causes further postponement of mid-March completion target
• June: Operations involving coal gasification are suspended

• October 2021: Demolition of gasification infrastructure finalized

Lignite

Lignite is a soft, brownish-black form of coal characterized by the lowest energy density among coal varieties and high pollutant emissions during combustion. The Lignite Energy Council reports that approximately 79% of lignite is utilized for power generation, 13.5% is converted into synthetic natural gas, and 7.5% is employed in fertilizer manufacturing. Mississippi possesses roughly five billion tons of lignite deposits, primarily dating back to the eocene epoch, which accounts for about 13% of the nation's lignite reserves. The economically viable seams generally measure between two and nine feet in thickness.

The Kemper facility was anticipated to consume nearly 375,000 tons of locally extracted lignite each month, amounting to close to 185 million tons over a span of four decades. The adoption of TRIG technology facilitated the use of lignite, influencing its selection for this initiative.

Technology

The Kemper plant, operated by Mississippi Power, was engineered as an integrated gasification combined cycle (IGCC) installation employing "transport integrated gasification" (TRIG) technology to transform on-site mined lignite into syngas. This syngas was intended to drive turbines for electricity production.

The utility sought to broaden its fuel portfolio by integrating coal, thereby decreasing dependence on a single energy source. The region boasts an estimated four billion tons of lignite available for utilization.

If realized, Kemper would have been the second facility in the United States to implement TRIG technology. The process produces substantial carbon dioxide emissions; however, Mississippi Power planned to capture and repurpose 65% of these emissions through Enhanced Oil Recovery techniques at adjacent oil fields.

Transport integrated gasification technology

TRIG was developed collaboratively by the Department of Energy, Southern Company, and KBR at the Power Systems Development Facility located in Wilsonville, Alabama.

Southern Company advocates TRIG as an advanced coal gasification approach with minimal environmental footprint. This technology's capability to utilize lignite—comprising over half of global coal reserves—has generated worldwide interest in the plant.

In April 2013, Power Magazine noted that commercial TRIG units can comply with stringent environmental regulations concerning , NO_x, particulate matter, mercury, and emissions. Economic evaluations indicate that TRIG's air-blown transport gasifier maintains cost-effectiveness even when incorporating carbon capture and storage measures.

Clean coal

Had the carbon capture and sequestration system at Kemper succeeded, it would have marked the United States’ inaugural clean coal power plant. This development addressed ongoing discussions within the energy industry about mitigating carbon dioxide output. In 2013, coal accounted for 40% of the U.S. energy mix, surpassing other sources in prevalence.

Acknowledging continued demand for coal, Mississippi Power, Southern Company, KBR, and the Department of Energy invested in technologies designed to capture emissions from fossil fuel combustion. They anticipated that clean coal innovations like those deployed at Kemper would achieve widespread global adoption and deliver benefits to Mississippi consumers.

Nonetheless, environmental advocates contend that clean coal remains impractical since some emissions are unavoidable.

Carbon capture and sequestration

Carbon capture and sequestration (CCS) is a process capable of capturing as much as 90% of carbon dioxide () emissions. This approach integrates multiple technologies to extract from combustion sources, transport it to designated storage locations, and securely store it—usually in deep underground formations—thereby preventing its release into the atmosphere and reducing environmental impact. Typical storage sites include saline aquifers and depleted oil fields, where the stored can also facilitate enhanced oil recovery.

As global energy consumption continues to grow, the use of fossil fuels—and consequently emissions—is projected to rise through 2035.

Carbon dioxide enhanced oil recovery

Enhanced oil recovery using carbon dioxide (-EOR) enhances petroleum extraction by injecting into oil reservoirs, which displaces oil that was previously unrecoverable, pushing it to the surface. According to the US Department of Energy, this method can increase recoverable oil by an additional 30–60% beyond original estimates. Once extraction is complete, these exhausted reservoirs can be repurposed for long-term storage.

The Kemper Plant had plans for a 60-mile pipeline designed to transport captured to nearby oil fields for EOR purposes, targeting an annual capture of 3 million tons. Reports in 2014 indicated that this captured would be supplied to two companies in Mississippi for their enhanced oil recovery operations.

Research and development

Starting in 1996, the Department of Energy partnered with Southern Company and construction firm KBR at the Power Systems Development Facility (PSDF) in Wilsonville, Alabama to advance Transport Integrated Gasification (TRIG) technology. The gasifier design employed at Southern Company's Kemper Coal Plant is derived from this technology, which is economically viable for processing low-energy content coals with high moisture or ash content such as lignite.

Per the U.S. Department of Energy, coal gasification provides a flexible and cleaner alternative by breaking coal down into its chemical components rather than combusting it directly, enabling production of electricity, hydrogen, and other energy carriers.

Commercial coal gasification technologies have been under development since the 1970s and have been operational since the mid-1980s.

TRIG technology, adapted from fluidized catalytic cracking units used in petrochemical refining, employs a pressurized circulating fluidized bed design. This configuration delivers improved efficiency and enables processing of low-rank coals like lignite. Commercial TRIG installations comply with strict environmental regulations covering sulfur dioxide, nitrogen oxides, particulate matter, mercury, and carbon dioxide emissions. Economic assessments based on Kemper’s configuration indicate that air-blown transport gasifiers retain cost competitiveness even when incorporating carbon capture and sequestration measures.

The largest transport gasifier was commissioned in 1996 at Southern Company’s PSDF facility. Engineered to provide reliable data for scaling up to commercial operations, it accumulated over 15,600 hours of run time. During four test campaigns totaling more than 2,300 hours, it successfully gasified high-moisture lignite sourced from Mississippi’s Red Hills Mine, confirming the suitability of the design for Kemper County applications.

Legal issues

In February 2015, the Mississippi Supreme Court determined that Mississippi Power must reimburse approximately 186,000 ratepayers in South Mississippi for rate increases associated with the Kemper Project. These charges originated under Mississippi's Baseload Act permitting utilities to bill customers for power plants still under construction.

In May 2016, Southern Company and Mississippi Power disclosed that they were subject to an SEC investigation concerning cost overruns related to the Kemper Project. The project faced multiple delays and saw its budget escalate from $2.88 billion up to $6.7 billion.

In June 2016, Treetop Midstream Services filed a lawsuit against Mississippi Power after the company canceled an agreement to receive carbon dioxide captured by the Kemper Project's carbon capture and storage system. Treetop claimed fraudulent misrepresentation regarding the plant’s operational start date; however, Mississippi Power denied these allegations.

Additionally, Mississippi Power was found to have unlawfully terminated an employee who had raised concerns about purportedly false statements made by management.

Environmental controversies

Environmental organizations have voiced concerns over the project, labeling it as expensive while offering limited advantages. In 2011, both the Sierra Club and Bridge the Gulf petitioned the U.S. Army Corps of Engineers to reject the necessary wetland permits for the facility's construction.

The Mississippi chapter of the Sierra Club highlighted that situating the plant within wetlands could result in contaminated runoff and ecological damage, including soil erosion linked to lignite mining that necessitated relocating nearby residents. To address these issues, mitigation measures were implemented, such as improving 31 acres of wetlands, establishing 105 acres of riparian buffer zones, and rehabilitating nearly 3,000 linear feet of stream channels.

Collaborating with the city of Meridian, the plant relies exclusively on municipal wastewater for its water supply. The Kemper facility functions as a "zero" liquid discharge plant, meaning no treated water is discharged into surrounding natural water bodies.

Political controversies

Mississippi Governor Haley Barbour lauded the initiative for elevating Mississippi’s profile nationally by potentially becoming the first commercial-scale power plant in the U.S. to implement carbon capture technology. Former House Speaker Newt Gingrich also endorsed the Kemper Project, describing it as an innovative venture in power generation and encouraging Mississippi to emerge as a leader in energy innovation over the next decade or two.

Following the cancellation of Southern Company’s Orlando Gasification Project due to Florida’s resistance to new coal plants, approximately $270 million in Department of Energy funding was redirected to the Kemper Project. This reallocation occurred in 2008 after lobbying efforts by Barbour’s Washington D.C.-based BGR Group, which had represented Southern Company since 1999 and received $2.6 million from them. Southern Company denies that Barbour influenced additional funding allocations, and BGR subsequently removed Southern Company references from its website.

Legislation in Mississippi was revised to permit recovery of construction expenses from ratepayers. In 2017, to prevent further increases in consumer rates, the Mississippi Public Service Commission recommended transitioning the plant’s fuel source from coal-derived syngas to natural gas.

After failing to achieve its intended objectives, the project abandoned its "clean coal" ambitions in July 2017 and is currently anticipated to operate exclusively on natural gas.

See also

• Petra Nova, a CCS project at the WA Parish Generating Station in Texas