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DOE’s First Advanced Fossil Fuel Loan Guarantee Commitment Awarded to Methanol Plant with Carbon Capture

December 25, 2016

The Department of Energy’s (DOE’s) first loan guarantee under an $ 8 billion solicitation for advanced fossil energy projects may go to a methanol production facility in Lake Charles, La., that will employ carbon capture technology for enhanced oil recovery.

The DOE said in a statement on December 21 that it offered a conditional commitment to guarantee loans of up to $ 2 billion to help build the facility. If built, the facility will be the world’s first methanol production facility to use carbon capture technology. It would also be the first facility in the U.S. to derive methanol from petroleum coke (petcoke), which is a byproduct of oil refining.

The proposed plant will produce methanol, hydrogen, and other industrial gases and chemical products using petcoke as a feedstock. It proposes to capture 77% of carbon dioxide from the petcoke gasification plant. The gas will then be compressed and transported to oilfields in Texas for enhanced oil recovery.

The DOE’s solicitation issued in December 2013 under Title XVII of the Energy Policy Act of 2005 sought applications for loan guarantees to finance U.S.…

Market Conditions Doom Another Nuclear Plant, Palisades, to Closure in 2018

December 8, 2016

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Entergy Corp. has decided to permanently close the Palisades nuclear power plant on October 1, 2018.

The news comes as a bit of a surprise, because Entergy had a power purchase agreement with Consumers Energy—Michigan’s largest utility and the principal subsidiary of CMS Energy—which committed the company to buying nearly all of the power generated at Palisades through April 2022.

Late last year, however, UBS utilities analyst Julien Dumoulin-Smith suggested that the contract appeared to be potentially break-even or under water. Terminating the deal early was presumably the best option for both companies.

In a press release, Entergy said Consumers’ customers would save as much as $ 172 million over four years, even after paying Entergy $ 172 million to terminate the contract. The early termination payment is expected to “help assure the plant’s transition from operations to decommissioning.”

The 798-MW plant located about five miles south of South Haven, Mich., faced economic difficulties similar to other single-unit facilities, such as the recently closed Fort Calhoun Plant, and the R.E.…

Arrests Made After Scaffold Collapse Kills 74 Workers at Chinese Power Plant

November 30, 2016

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Nine people, including the chairman and chief engineer of the Fengcheng power plant, have been arrested following a scaffold collapse that killed 74 construction workers on November 24.

The scaffold platform had been erected to facilitate work on a cooling tower that was being constructed at the plant located in Yichun City, Jiangxi Province. According to a CCTV newscast, more than 60 people were working on the platform, and more than a dozen were on the ground waiting for their 7 a.m. shift to start, when the scaffold collapsed.

China orders safety overhaul after power plant accident in Jiangxi killed 74 https://t.co/G3KfkVluIx https://t.co/D6K8nFAEZB pic.twitter.com/Jzdu1Jv2pw

— China Xinhua News (@XHNews) November 28, 2016

China’s state news agency Xinhua reported that the victims ranged in age from 23 to 53 years old, with most under the age of 36. More than 300 rescuers, two drones, four sniffer dogs, and seven cranes were said to have been involved in the search and rescue effort.…

Idaho Power Pursues Accelerated Depreciation of North Valmy Coal Plant

October 31, 2016

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Idaho Power—co-owner with NV Energy of the two-unit 522-MW North Valmy Generating Station near Battle Mountain, Nevada—filed a request with the Idaho Public Utilities Commission (IPUC) last week seeking to accelerate the depreciable life of the power plant from 2031 for Unit 1 and 2035 for Unit 2 to 2025 for both units.

In Idaho Power’s 2015 Integrated Resource Plan (IRP), the company said its preferred portfolio included retirement of the North Valmy plant at year-end 2025. The timing matched the expected completion date of the Boardman to Hemingway transmission line project, which will add a new connection to the Pacific Northwest. The preferred portfolio included the addition of 60 MW of demand response and 20 MW of ice-based thermal energy storage in 2030, and the addition of a 300-MW combined cycle combustion turbine in 2031.

The 2015 IRP included a 2016 action item to continue working with NV Energy “to synchronize depreciation dates and determine if a date can be established to cease coal-fired operations” at North Valmy Units 1 and 2.…

MPUC Decision Spells End for Two Coal Units at Xcel’s Largest Plant

October 15, 2016

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The Minnesota Public Utilities Commission (MPUC) voted unanimously to support Xcel Energy’s latest long-range plan, which will transform the company’s energy fleet.

Xcel expects to more than double its renewable energy portfolio as a result, delivering greater than 60% carbon-free energy to its Upper Midwest (Michigan, Minnesota, North Dakota, South Dakota, and Wisconsin) customers by 2030.

Coal-Fired Capacity Takes a Hit

The MPUC approval finalizes Xcel’s decision to retire Units 1 and 2 at the Sherburne County Generating Plant (Sherco, Figure 1) in Becker, Minn. Sherco is a 2,222-MW three-unit facility—Xcel’s largest. The company announced last year that it wanted to close the 1976- and 1977-commissioned units, but it still plans to continue operating the 860-MW Unit 3 (added in 1987). Xcel co-owns that unit with Southern Minnesota Municipal Power Agency, which holds a 41% stake.

1. Sherburne County Generating Plant. Units 1 and 2 will be retired in 2023 and 2026, respectively. Courtesy: Xcel Energy

Laura McCarten, regional vice president of Xcel Energy, told POWER that Unit 1 would be retired in 2023 and Unit 2 would be shuttered in 2026.…

Delayed Again, Kemper County IGCC Plant to Start Operations in a Month

October 6, 2016

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Mississippi Power’s integrated gasification combined cycle (IGCC) power plant under construction in Kemper County, Miss., will likely be placed in service by November 30, a month later than anticipated. The delay will be costly.

Mississippi Power reached a new milestone on September 16, announcing that it had started producing syngas using the second gasifier—gasifier “A”—at the facility. Initial production of syngas at gasifier “B” began on July 14, demonstrating the viability of transport integrated gasification technology, which is being used for the first time at commercial scale, Southern Co. said in a statement.

In late August, however, gasifier B was taken offline for inspection, the company said in an October 3 filing with the U.S. Securities and Exchange Commission.

“The removal of ash and ash deposits prior to the inspection of gasifier ‘B’ required more time than initially expected. Additional time has been added to the schedule to allow for the restart of gasifier ‘B’ and for both gasifier trains to achieve the sustained capacity levels necessary for the initial operations and testing of the syngas clean-up systems and the production of electricity using syngas,” it said.…