The U.S. Department of Energy said construction started on a $19.5 million carbon capture research project at a coal power station in Kentucky.

Kentucky Gov. Steve Beshear and state Energy Secretary Len Peters joined Department of Energy officials and other dignitaries for a ribbon-cutting ceremony for the construction of the pilot project at Kentucky Utilities' E.W. Brown Generating Station near Harrodsburg, Ky.

The facility is designed to strip carbon dioxide from the flue gas at the power station.

The project, developed in part by the University of Kentucky Center for Applied Energy Research, was selected to receive the majority of its funding by the Department of Energy in a competitive process in 2011.

Eli Capilouto, president of the university, said results from the pilot project could determine if it's ready for commercial-scale use for a state dependent on coal.

"Coal has been the lifeblood of Kentucky and the most affordable fuel for energy generation for some time, but economic and regulatory pressure is changing the role coal has played in the energy landscape of Kentucky," he said in a statement Monday.

The 2 megawatt system will be the first of its kind in Kentucky once it's completed in 2016.