Bob Ciura of The Motley Fool released an article on February 11th on Southern Company’s nuclear energy and coal-fired plants, and how potential investors should be looking at this technology.  Ciura specially looks at the Kemper TRIG technology.

Southern Company is plowing huge resources in a radical technology that has the potential to permanently transform how utilities utilize coal. The Kemper facility is a 582-megawatt electric power plant that features a high-efficiency technology capable of utilizing lignite, which accounts for more than half of the world’s coal reserves.

The technology is called Transport Integrated Gasification, or TRIG, and was developed by Southern Company and KBR, (NYSE: KBR  ) .This technology converts lignite to gas at a much lower temperature than traditional coal conversion, resulting in significantly lower costs than what’s possible with existing gasification technologies. The Kemper facility will employ two KBR TRIG gasifiers to produce clean coal energy.

This is a revolutionary plan for Southern that will allow for greater power production at a lower capital cost. In addition, the facility is more environmentally friendly than existing coal burning technologies, since it involves fewer emissions of sulfur dioxide and carbon dioxide. Southern Company management hopes to begin operation at Kemper by the end of the year.

Of course, costs are still a considerable concern. Southern Company’s results last year were weighed down by $729 million, or $0.83 per share, by increased cost estimates for the Kemper project. It’s important for Southern Company to keep costs under control, and not just for its own well-being. Other utilities may shy away from building similar clean coal plants on the basis of cost feasibility.

Southern Company has of course seen some ridicule for their attempts to make a cleaner, more cost effective, coal based energy, but investors are excited for the prospects of this project.

Southern Company’s two major strategic initiatives, the Vogtle expansion and Kemper facility, are key to its future. Southern Company is investing heavily in nuclear and coal, two sources of energy that endure heavy criticism. The potential for these two facilities to provide more energy along with more favorable environmental impacts and cost savings is truly exciting. Through these massive undertakings, Southern Company is proving that utilities can give their investors a dose of excitement after all.

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