Coal

Revised plan for clean coal power plant could save customers $437.7mn in 20 years

Wed, 16 May 2012 19:30:00 GMT

Under the revised "Power Block First" proposal for the 611 MW Taylorville Energy Center (TEC) in Illinois, electricity customers in the state could save an estimated $437.7 million over a 20-year period, including more than $250.6 million in the plant's first five years of operation, according to a rate impact analysis conducted by Pace Global LLC, a Siemens (NYSE: SI) business.

As TEC's power capacity is bid into the PJM auction in future years, hundreds of millions in additional savings for ComEd customers could also be realized because of lower resulting auction prices. PJM holds an annual auction for generating capacity contracts that begin three years into the future.

Using U.S. Energy Information Administration (EIA) forecasts of natural gas and power prices, and electricity demand growth, Pace Global found that adding TEC's power into the Illinois energy markets would reduce average electricity bills by $21.9 million per year over the first 20 years of the project. During the plant's first five years of operation, customers can expect $50.1 million in average annual savings.

The revised “Power Block First” proposal would authorize construction of the initial stage of TEC. The first phase of the project would equip a combined-cycle natural gas-fired power plant that would be equipped to accept substitute natural gas (SNG) from a potential future coal gasification unit. Should market conditions improve and the plant meets the General Assembly’s approval, the second phase of the plant would incorporate the coal gasification unit along a with carbon capture and storage system.

"The 'Power Block First' plan allows Illinois to take advantage of today's low natural gas prices to build a necessary new source of electric power resulting in lower overall rates," said Tenaska Vice President Bart Ford. "In the future, when economics favor the use of Illinois coal, equipment can be added to convert coal to clean SNG, capture carbon dioxide and provide for geologic storage."

The new plan also allows Tenaska to preserve the air permit and interconnection position for the initial natural gas-fired power plant. The ability to proceed with the SNG portion of the plant is preserved as a hedge against the possibility of increasing gas prices.

Mexico will require $20bn investments in power generation through 2026

Wed, 16 May 2012 15:49:00 GMT

The energy minister of Mexico said the country would require $20.1 billion in power generation investments through 2026, according to BNamericas. More than three-quarters of the investments will go toward renewable energy sources, with hydroelectric generation increasing from 36 TWh to 44 TWh.

The generation mix in 2025 is expected to have 55.7 percent of capacity from fossil fuels, down from 80 percent currently. Hydro will make up 18 percent of the total, followed by wind at 6.9 percent and solar at 0.7 percent, the article said.

Study evaluates MISO challenges for MATS compliance

Tue, 15 May 2012 20:04:00 GMT

In a study commissioned by the Midwest Independent Transmission System Operator (MISO), economists at The Brattle Group evaluated the feasibility of complying with the U.S. Environmental Protection Agency’s (EPA’s) Mercury and Air Toxics Standards (MATS) rule.

The study found that the projected amount of retrofits on coal units and the amount of new generation to replace retiring coal units in the MISO region will exceed the historical maximum achieved for simultaneous deployments of retrofits and new builds by 51 to 162 percent, based on MISO’s current projections of retrofit requirements and announced projects. For nationwide retrofits, the requirements imposed by MATS would be below historical maximums if the EPA’s projections are correct, or up to 93 percent above historical maximums if industry estimates are more accurate.

With respect to the timeline needed for retrofits, the study revealed that some types of upgrades can be completed before 2015 without difficulty, including activated carbon injection (ACI) and dry sorbent injection (DSI), which can be implemented within approximately a year and a half. Most projects, however, have a longer lead time of approximately three to four years, including wet and dry scrubber, baghouse, electrostatic precipitator (ESP), and selective catalytic reduction (SCR), as well as new gas combustion turbines (CTs) and combined cycles (CCs). Some of these longer lead time projects may not be completed by the MATS compliance date (April 2015, with a potential one-year extension) to the extent they have not already started.

The study evaluated the potential for craft labor to become a bottleneck that could introduce project delays and increase costs. Comparing the projected labor needs against the current labor supply for each craft revealed that boilermakers are the most likely bottleneck. As many as 7,590 boilermakers (or 40 percent of boilermakers currently employed nationally) could be needed to complete the projected retrofits and new generation construction by 2015. This potential demand is more than four times the number of boilermakers currently employed in the Utility System Construction Industry. Therefore, meeting the projected demand for boilermakers will likely require a combination of adjustments on the supply side, including training new labor, relocation, extending work hours and attracting craft labor from other industries.

With respect to the incremental outage periods necessary to implement the projected retrofits, the study estimates that some upgrades, such as dry scrubber, DSI, selective non-catalytic reduction (SNCR), and ACI, require that the outage duration need only be extended a few days or a week, although some types of upgrades impose much longer outages. Wet FGD, baghouse, and SCR retrofits are likely to require that outages be extended by approximately three weeks. Considering the fleet-wide impacts of these outages, it appears that MISO may have to schedule approximately 45 percent more megawatts of coal outages per season for MATS compliance by fall 2015, assuming that many plants will gain a one-year compliance extension. These additional outage requirements appear to be feasible to implement under MISO’s low-retirement scenarios without causing system reliability concerns. The study notes that implementing the incremental outages under scenarios with higher coal retirement scenarios (12 GW and 19 GW) would likely require a combination of extending the six-month outage season to nine months and requesting an additional one-year reliability extension to 2017 for MATS compliance.

The study, “Supply Chain and Outage Analysis of MISO Coal Retrofits for MATS,” is available for download here.

Weekly Coal Production

Thu, 10 May 2012 17:30:00 GMT

The Weekly Coal Production shows how much coal is being produced across the U.S. Each week, the Energy Information Administration (EIA) takes a look at coal numbers from each state as well as the coal-producing regions in the U.S.

For the latest numbers, click here.

DOE: Natural gas use at an all-time high

Thu, 10 May 2012 14:50:00 GMT

A report from the U.S. Department of Energy shows the U.S. used a record amount of natural gas-fired generation in February, according to Reuters.

Consumption from natural gas power plants rose 34 percent from last February, as gas prices remain at a 10-year low, pushing many utilities to switch from coal-fired generation in response to new and proposed environmental regulations, according to the article.

Gas-fired power plants used an average of 5 billion cubic feet per day more of natural gas through April 10, 2012 than during the same time period last year, the article said.

Tenaska contemplates abandoning coal for natural gas

Wed, 09 May 2012 16:35:00 GMT

Tenaska has offered to use natural gas instead of coal to power the proposed 716 MW Taylorville Energy Center in central Illinois. The move would reduce construction costs to about $1.1 billion and likely stifle opposition to the plant, according to The Chicago Tribune.

According to the report, a closed-door meeting discussing the possible change of plans was led by Senate President John Cullerton and Rep. John Bradley (D-Marion), who sponsored legislation that would force electricity customers to purchase power from the plant for 30 years.

The new offer has not yet been proposed in writing, according to the report.

Operations suspended at coal-fired power plant in New Hampshire

Wed, 09 May 2012 14:53:00 GMT

Public Service of New Hampshire suspended operations at its 460 MW Merrimack coal-fired power plant saying that it is cheaper to buy the electricity on the open market, according to the Chicago Tribune.

A company spokesman was quoted as saying in the article that an oversupply of natural gas and a drop in gas prices are the main reasons behind the plant going offline.

The company said Merrimack has been running as a peaking plant and does not expect the plant to produce much energy from April through June and again from September through November, the article said.

In 2005, Merrimack’s Unit 1 had a capacity factor of 98 percent and Unit 2 was operating at 68 percent. That fell to 64 percent and 49 percent, respectively, in 2011 and is expected to drop further in 2012, according to the article.

The company has invested $360 million on a mercury scrubber and plans to spend a total of $422 million in upgrades.

Read more coal operations and maintenance news

Minnesota Power announces emissions control plan for Boswell 4

Wed, 09 May 2012 14:35:00 GMT

Minnesota Power has announced plans to upgrade Boswell Energy Center Unit 4 in Cohasset, Minn. with emissions controls that will reduce its mercury emissions by 90 percent. The upgrades will also provide significant reduction of particulates and sulfur dioxide.

Minnesota Power, based in Duluth, is a utility division of Allete Inc. (NYSE: ALE).

Minnesota Power owns 80 percent of the 585 MW Boswell 4 with the balance owned by WPPI Energy. Minnesota Power’s portion of the project is estimated to be $350 to $400 million over the next several years. WPPI Energy will pay the cost of its share of the project. Multi-emission reduction project plans and permit applications will be filed with federal and state regulators next month.

With requirements for a 90 percent mercury reduction on Boswell Unit 4 by 2018 already in state
statute, Minnesota Power has been analyzing a Unit 4 retrofit as pending Environmental Protection
Agency regulations affecting coal units across the nation are finalized. Technology choices, resource needs, economic projections, customer cost impacts and project execution were key factors in this extensive assessment. The EPA’s issuance of the MATS Rule for mercury reduction in December of 2011 was a key factor in the timing of Minnesota Power’s decision.

Over the past six years, Minnesota Power has invested approximately $350 million dollars to reduce emissions by about 70 percent overall on its system, with most of this investment applied to
Boswell Unit 3, the company’s second largest generator. The Boswell 4 project will increase overall emission reduction to around 85 percent. Every phase of Minnesota Power’s ongoing resource planning process has underscored that emission reduction investments in Boswell 3 and 4 to enhance and sustain these core energy sources are a good value for customers.

Read more new emissions control projects news

Indiana coal-fired power plant to close in 2015

Wed, 09 May 2012 14:30:00 GMT

Hoosier Energy Rural Electric Co-op plans to retire its 250 MW Ratts coal-fired power plant in Indiana in 2015, according to Platts. The co-op cited costs associated with U.S. Environmental Protection Agency regulations as the reason behind the closure, the article said.

The co-op reportedly reached the decision after analyzing the impact of EPA rules, the article said. The plant is one of two baseload coal units owned and operated by Hoosier. The other is the 1,070 MW Merom power plant.

Read more environmental remediation news

Report evaluates EPA's new standard for greenhouse gases

Tue, 08 May 2012 20:34:00 GMT

A new report by Bloomberg Government says that gas-fired generation will likely become the dominant form of power generation over time in light of the U.S. Environmental Protection Agency’s (EPA’s) new standards for greenhouse gases. The report, “The Twilight of Coal-Fired Power?” finds that new coal plants would effectively be banned because their emission rate is almost double that allowed in the proposed standard.

The report also asserts that while the proposed rule makes room to build coal plants that incorporate carbon capture and storage (CCS) technology, coal plants with CCS will likely be too expensive to build unless Congress enacts programs to subsidize the technology. Electricity generated from coal with CCS is almost 50 percent more expensive than energy generated from conventional coal, according to the U.S. Energy Information Administration (EIA).

EPA recently announced that it will hold two public hearings on the proposed carbon standard. The hearings will be May 24, 2012 in Washington D.C. and Chicago. EPA is also extending the comment period on this proposed rule until June 25 to provide for 30 days for the public to comment after the public hearing. The report estimates that based on the timing of these hearings, a final version of the regulation will likely be issued after the November presidential election.

The report goes on to say that based on the compelling economics of natural gas prices, there are few companies seriously considering the construction of new coal-fired power plants in the U.S. In fact, the average U.S. coal-fired power plant is 38 years old, the study finds. Based on an EIA assessment of the cost of coal-fired power, natural gas prices would need to increase to almost $10/mmBtu for a power plant developer to be indifferent to between building with coal or natural gas, the study point out. Therefore, the proposed greenhouse gas standard may not alter the futures of the power generation mix after all.

Purdue plans to demolish coal-fired boiler, install CHP plant on campus

Tue, 08 May 2012 14:33:00 GMT

Officials with Purdue University in Indiana on May 7 presented a Comprehensive Energy Master Plan (CEMP), which calls for $33.1 million to be used to demolish an old coal-burning boiler, convert another coal-burning boiler to natural gas, install a natural gas-fired combined heat and power unit, and increase steam distribution along Jischke Drive. The money had originally been slated to build a new clean-coal boiler.

Planned near-term improvements include a 5 million gallon thermal energy storage tank that will allow water to be chilled at night when demand for cooling is low and electricity rates are cheaper. Wade Power Plant's Chiller 6 is scheduled for renovations to extend its service life. Planned upgrades to the pump at the northwest satellite plant will improve distribution at the north end of campus.

As written, mid- and long-term goals include replacing Chiller 6 at the Wade plant, removing Chiller 7 and Boiler 2, building a Boiler 9, adding new chillers at Satellite Plant 2, and building a new chilled water line along Third Street.

The Board of Trustees Physical Facilities Committee requested in 2011 that the university create a comprehensive energy plan to identify and meet the long-term energy needs on the campus. Burns & McDonnell was hired to assist the committee in the plan's development.

Coal-fired unit expected back online by end of May

Mon, 07 May 2012 19:59:00 GMT

Wisconsin Energy said it expects the 615 MW Unit 1 at the Elm Road coal-fired power plant in Wisconsin to be back online by the end of May, according to Reuters.

The unit shut down at the end of September for an inspection near the end of its warranty period. During the inspection, workers found deposits containing chlorides in the steam turbines. Unit 2 first entered service in February 2010.

The 615 MW Unit 2 has continued to operate throughout the shutdown. The company said in the article that it does not expect Unit 2 to have the same problem as Unit 1, but the unit would be inspected before its warranty ends later in 2012. Unit 2 entered service in January 2011.

The Elm Road units were built at Wisconsin Energy’s 1,135 MW Oak Creek coal-fired power plant.

Read more coal operations and maintenance news

Wisconsin Public Service vies to be first in U.S. to use ReACT

Mon, 07 May 2012 19:30:00 GMT

Wisconsin Public Service Corp. (WPS), a subsidiary of Integrys Energy Group (NYSE: TEG), has filed for a Certificate of Authority from the Public Service Commission of Wisconsin (PSCW) to install the first U.S. commercial application of Regenerative Activated Coke Technology (ReACT) at its 321 MW Weston 3 plant.

ReACT is a multi-pollutant control technology that removes sulfur dioxide (SO₂), nitrogen oxides (NO_x) and mercury from coal-fired plants by adsorption with activated coke. WPS said it expects that the estimated $250 million project will reduce plant SO₂ emissions by more than 90 percent, mercury by 90 percent or more, and NO_x by more than 20 percent.

WPS has partnered with Hamon Research-Cottrell, Inc. (HRC) to provide the ReACT technology, engineering, erection and other services for the project. HRC holds the license for the ReACT technology.

The ReACT technology has been used successfully in Japan for many years and has been successfully demonstrated in the U.S. as part of an Electric Power Research Institute project hosted by Sierra Pacific Power at its North Valmy Station.

Following PSCW approval, the project will take more than 3.5 years to complete and bring more than 200 temporary construction jobs to the Wausau, Wisc. area.

AES to sell stakes in coal-fired power plant, wind projects for $134mn

Mon, 07 May 2012 14:55:00 GMT

AES Corp. (NYSE: AES) will sell 2,727 MW of coal-fired capacity in China for $134 million because it is unable to pass on higher coal costs to customers, according to Reuters. The deal is expected to close in the second half of 2012.

Sembcorp Utilities, a subsidiary of Sembcorp Industries, will acquire some of the assets for $85.5 million. The deal includes a 49 percent stake in four wind power assets with a total generating capacity of 247.5 MW owned through AES Huanghua, AES Hulunbeier Wind Power Co., AES Xinba’erhu Wind Power Co. and AES Chenba’erhu Wind Power Co., also known as the China Wind joint venture, as well as a 25 percent stake in the 2,100 MW Yangcheng coal-fired power plant owned through AES China Corp. The remaining 51 percent stake in the wind projects are owned through joint venture partner Guohua Energy Investment Co.

AES also plans to sell its 49 percent interest in Jianghe Rural Electrification Development Co. Ltd. to its joint venture partner China Three Gorges New Energy Corp. for $48 million, according to Reuters.

Emissions control system to be installed at Illinois coal-fired power plant

Mon, 07 May 2012 13:56:00 GMT

KBR (NYSE: KBR) announced that Kincaid Generation LLC, a subsidiary of Dominion Resources Inc. (NYSE: D), awarded the KBR Power & Industrial Group a contract to provide engineering, procurement, and construction (EPC) services for a dry sorbent injection (DSI) system to reduce sulfur dioxide emissions at its 1,158 MW Kincaid coal-fired power plant in Illinois. Financial terms of the deal were not disclosed.

The project will include sodium bicarbonate (SBC) rail unloading facilities, SBC truck unloading facilities, Nol-Tec Systems “Sorb-N-Ject” technology DSI system, and onsite SBC milling and storage. The project is scheduled for completion in late 2013.

EPA sued over Oklahoma coal-fired power plant emissions

Fri, 04 May 2012 14:51:00 GMT

The Sierra Club filed a federal lawsuit against the U.S. Environmental Protection Agency, claiming that a loophole allowed coal-fired power plants in Oklahoma to exceed emissions standards under the Clean Air Act.

According to The Associated Press, the environmental group claims that plants like Oklahoma Gas & Electric’s (OG&E) 1,716 MW Muskogee plant are permitted to exceed emissions standards during certain phases of operations, such as start up, shutdown, or when performing maintenance on a malfunctioning plant.

OG&E said in the article that it would follow whatever process the EPA approves.

Click here to read the filed complaint. (PDF)

Ameren seeks extension to comply with emissions standards, may close coal-fired power plants

Fri, 04 May 2012 13:40:00 GMT

Citing depressed power prices and the high cost of environmental controls, as well as other factors, Ameren Energy Resources Co. LLC (AER), filed a petition with the Illinois Pollution Control Board (IPCB) seeking flexibility in meeting certain emissions standards established by the Illinois Multi-Pollutant Standards (MPS).

AER, the holding company for the merchant generation business of Ameren Corp. (NYSE: AEE), is seeking additional time to meet the sulfur dioxide (SO₂) limits applicable to its fleet, extending the compliance dates to Dec. 31, 2020.

AER said it has spent more than $1 billion on pollution control equipment to comply with the existing MPS SO₂ limits until 2015, but the company said those limits will be significantly reduced on Jan. 1, 2015.

"Current market prices simply do not allow further investment in pollution control equipment at this time," said Steven R. Sullivan, president and CEO of AER.

In February, AER announced the deceleration of its planned scrubber project at its Newton Energy Center, which would have satisfied the 2015 MPS SO₂ standards. Sullivan said if the request is not granted, AER may shut down two of three remaining unscrubbed coal-fired power plants on Jan.1, 2015. Those plants are Edwards, Joppa, and/or Newton.

AER said approval of the request by the IPCB will allow additional time for economic recovery and related power price improvements necessary to support scrubber installations and other pollution controls at some of AER's energy centers. Under AER's proposed compliance plan, the company expects its SO₂ emissions during the period covered by the variance would not increase.

AER is also working closely with the PJM Regional Transmission Operator (PJM RTO) and the Midwest Independent Transmission System Operator (MISO) to remove barriers preventing downstate Illinois generators from moving power to the northern part of the state where prices are higher.

Battery storage system integrated into thermal power plant in Chile

Thu, 03 May 2012 18:31:00 GMT

AES Gener and AES Energy Storage announced the commercial operation of the second energy storage project in Northern Chile, integrating 20 MW of advanced battery-based energy storage with a 544 MW thermal power plant. Both companies are subsidiaries of AES Corp (NYSE: AES).

The project is owned by AES Gener and will operate through its subsidiary, Empresa Electrica Angamos S.A. (Angamos).

The advanced reserve capacity provided by the storage technology will enable the Angamos plant to generate an additional 20 MW of energy at virtually all times throughout the year. As a result, this newly available energy will increase power generation from the Angamos plant by 4 percent.

The storage system was designed, built and operational in 15 months. It is comprised of approximately one million advanced lithium-ion battery cells divided between ten, 2 MW battery containers and five, 4 MW power controls containers. A123 Systems (NASDAQ: AONE) supplied the energy storage systems for the project, and the power controls modules were provided by ABB (NYSE: ABB).

AES Energy Storage worked with AES Gener throughout the design, development, and installation of the Angamos BESS. AES Energy Storage worked with CDEC-SING, AES Gener and its partners to configure the parameters of the advanced reserves product enabling the Angamos BESS to meet the performance requirements of the electrical system operator and respond autonomously within established parameters. The advanced reserves product also features system monitoring, SCADA and integration with other operational systems.

Kentucky regulators OK new natural gas-fired power plant

Thu, 03 May 2012 16:17:00 GMT

The Kentucky Public Service Commission (PSC) approved a proposal by Kentucky Utilities Co. (KU) and Louisville Gas & Electric Co. (LG&E) to build a 640 MW natural gas-fired power plant at LG&E’s Cane Run plant and to purchase the 495 MW Bluegrass natural gas-fired plant in Oldham County. The Bluegrass plant will be used as a peaking plant.

In their application, KU and LG&E said that the additional generating capacity is needed to replace coal-fired units at Cane Run and at KU’s Green River and Tyrone plants and to meet projected increases in demand for electricity by 2016. Those facilities are being retired by the end of 2015 as part of a broader plan to comply with new and stricter federal air quality regulations. Construction of the new plant at Cane Run will cost about $583 million, the companies said in their application, which includes a new natural gas pipeline to the site. The purchase price of the Bluegrass Generation plant is $110 million.

Both LG&E and KU are subsidiaries of PPL Corp (NYSE: PPL). Based on the need for replacement power, a majority of the cost and ownership of the new Cane Run plant would be allocated to KU. Most of the Bluegrass plant would be allocated to LG&E.

Midwest expedites closure of coal plants

Thu, 03 May 2012 13:53:00 GMT

Midwest Generation is planning to close two coal-fired power plants in Illinois sooner than planned. In February, the company announced that it would shutter the 326 MW Fisk plant and the 542 MW Crawford plant by the end of 2014. According to The Chicago Tribune, the company has now agreed to retire the plants in September of this year.

Midwest Generation originally agreed to clean up or close the plants by 2018 in a 2006 agreement with state regulators.

According to the article, Fisk and Crawford are the last remaining coal plants in Chicago.