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Carbon Capture Proposed to Save New Mexico Coal Plant

March 3, 2019

The New York-based hedge fund aiming to take over New Mexico’s San Juan Generating Station (SJGS), targeted for closure by state lawmakers, wants to refit the 46-year-old, coal-fired plant to use carbon capture and sequestration (CCS) technology.

Acme Equities LLC said last week that retrofitting the 847-MW plant with CCS technology would cut carbon emissions by 90% and offer the plant another revenue stream—selling the captured CO₂to help produce oil. Acme is negotiating with local Farmington, N.M., officials to take over the San Juan plant, a major employer in the area, and keep it operating.

Injecting carbon dioxide into older oil fields has been done for years to encourage wells to continue producing oil.

But state lawmakers expressed doubts about the technology even as they pushed a bill (Senate Bill 489) that would close the plant by 2022, limit the financial hit to the plant’s current ownership, and preserve tax revenue for local schools.

Lawmakers wondered about the economic viability of the CCS technology during discussions March 2 with the state’s Senate Corporations and Transportation Committee.…

THE BIG PICTURE: Japan’s Nuclear Comeback

March 1, 2019

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After the Great Tohoku Earthquake and tsunami, and ensuing crisis at the Fukushima Daiichi nuclear plant in March 2011, Japan issued stringent safety regulations and reviews that affected its entire 50-reactor fleet. It meant that as each Japanese nuclear reactor entered its scheduled maintenance and refueling outage, it could not returned to operation until restart was approved by both Japan’s Nuclear Regulation Authority (NRA) and the central government. Nuclear operators also need consent from governments of local prefectures.

Between September 2013—when Ohi 3 and 4 were shut down—and August 2015, when Sendai 1 and 2 restarted, Japan’s entire reactor fleet went black. In 2013, though there was no consensus on how long the approval process could take, some industry observers forecast reactors under NRA review could be back online within a year. As of December 2018, only nine reactors had restarted. Sixteen others were under review by the NRA, where average review duration stretched beyond 1,000 days, owing to staffing issues.…

GE Selling Biopharma Unit in $21.4 Billion Deal

February 27, 2019

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General Electric’s (GE’s) sale of its biopharma unit on February 25 is designed to reduce the company’s overall debt load, and CEO Larry Culp said the deal is the latest step in his plan to strengthen the whole of GE, particularly the company’s struggling Power division.

GE on Monday agreed to sell the biopharma part of its life sciences business to Danaher Corp. for $ 21.4 billion. Washington, D.C.-based Danaher is the company Culp ran for about 13 years prior to joining GE.

Sale Strengthens Balance Sheet

“This news meaningfully accelerates our deleveraging plan,” Culp told Bloomberg after the deal was announced. “You can see the tide beginning to turn where we can really focus on a little less defense, a little more offense.” GE in November said it would reorganize GE Power into two businesses and consolidate the unit’s headquarters.

Shares in GE surged Monday, rising almost 9% to their highest level since October 2018. Culp, who took over as CEO on October 1 of last year, replacing John Flannery, in January said GE’s strategy moving forward “is clear: de-leverage our balance sheet and strengthen our businesses, starting with Power.…

Groups Reach Deal to Keep New Mexico Coal Plant Open

February 25, 2019

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A private New York-based real estate investment company that focuses on North American energy projects has reached an agreement with officials in Farmington, New Mexico, to keep the coal-fired San Juan Generating Station open beyond 2022.

The city is part-owner of the 847-MW plant, and the other owners—which include Tucson Electric Power, Los Alamos County, and Utah Associated Municipal Power Systems, along with majority owner Public Service Company of New Mexico (PNM)—have said they do not plan to receive power from the SJGS after 2022. The agreement with Acme Equities LLC, a hedge fund founded by Jason Selch in 2012, was reached late February 23, according to a news release from the city.

Farmington officials have worked to find a new operator for the plant after PNM in 2017 said it would close the plant’s two remaining units in 2022, 30 years ahead of schedule. According to a plant fact sheet, PNM owns 46% of the SJGS.

Several California-owned utilities formerly owned some of the plant’s generation, but they ended their ownership agreements in 2017 after 2015 legislation in California required them to divest from coal-fired generation.…

APS Will Add 850 MW of Battery Storage to Solar Plants

February 23, 2019

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Arizona’s largest utility wants to support its renewable power portfolio by adding as much as 850 MW of battery storage capacity to its solar power plants by 2025.

Arizona Public Service Co. (APS) made the announcement February 21. Don Brandt, the utility’s chairman and CEO, in a statement said, “Arizona is already a national leader in solar energy. The challenge is, no one has figured out how to stop the sun from setting at night. As storage technology improves and declines in cost, we will increasingly be able to store the power of the sun cost-effectively to deliver when our customers need it.”

The plan includes installing batteries at existing solar facilities, and at future sites. APS would not talk about the cost of the program, citing confidentiality agreements, but said it would build at least 100 MW of new solar capacity by 2025. Analysts have said the utility currently generates about 14% of its power from renewable sources.

The U.S.…

National Engineers Week: Engineering for the Power World

February 21, 2019

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This week (Feb. 17–23) is National Engineers Week. “EWeek” as the National Society of Professional Engineers calls it, is a formal coalition of more than 70 engineering, education, and cultural societies, and more than 50 corporations, and government agencies. Its key goal: raising public awareness of engineers’ positive contributions to quality of life.

Over the 14 decades it has been in print, POWER’s pages have captured countless engineering achievements that have advanced the world of power generation. In honor of EWeek, here some recent important stories that shed light on engineering topics and illustrate how important engineering is to our sector. Find many more in our archives at powermag.com.

Who Needs an Owner’s Engineer?

March 2011
In the past, members of a utility’s engineering staff spent their career designing and building new power plants. Today, many utility engineers find that opportunity comes around only once in a career. To fill the experience gap, an “owner’s engineer” company can add to a utility’s team a cadre of highly qualified power engineers who focus on avoiding design errors and keeping the project on schedule.…