Carbon Capture Proposed to Save New Mexico Coal Plant
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 CO2 to 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.…