Duke gets final nod to start work on Indiana coal gasification plant
Friday, January 25, 2008 - 3:12 PM EST
bizjournals.com
Duke Energy has received an air permit from the Indiana Department of Environmental Management for its planned $2 billion coal gasification plant in the southwestern Indiana town of Edwardsport.
"The decision on the air permit is the last approval we needed to start construction," Jim Stanley, president of Duke Energy's Indiana operations, said in a news release.
The new Knox County plant will serve all of Duke's Indiana customer base in 69 counties. Charlotte, N.C.-based Duke (NYSE: DUK) will receive about $460 million in local, state and federal tax incentives to build the plant.
Duke said it anticipates that construction will be complete by 2012.
Electricity will be produced by a process that converts coal into a synthesis gas, devoid of sulfur, mercury and ash. The syngas then is sent to a traditional combined-cycle power plant, which uses two combustion turbines and a steam turbine to produce electricity.
The environment-friendly plant will come at a cost to Duke customers in Indiana, who will experience an average electric rate increase of about 16 percent, phased in between 2008 and 2012.
Duke said some site work on the new plant is expected to begin in about two weeks, and major construction will start in the spring.
The project will employ an average of 800 to 900 construction workers over the three-year building period, with a peak work force of about 2,000. Once complete, the plant will employ about 100 people.
-----
Duke Power Plant A Go
Posted: Jan 25, 2008 06:39 PM
wthitv.com
KNOX COUNTY, Ind. - A massive power plant for southern Indiana gets its final approval.
Duke Energy's $2-billion coal gasification power plant in Knox County is now set for construction.
The project had been awaiting the o-k for its air permit from the Indiana Department of Environmental Management.
Duke Energy's has already pumped millions of dollars into site preparation for its proposed coal gasification power plant near Edwardsport.
Now, the state has approved the air permit, clearing the way for the largest private construction project in the history of Indiana.
"I'm happy from a Duke Energy perspective," said Roger Tomes with Duke Energy, "but I'm also happy for the folks in Knox County and southwestern Indiana,."
Duke had already done a lot of preliminary work on the site, but with this final approval the power plant is now a reality.
"We'll have to watch for the weather to break," said Tomes, "We'd love to have an early spring where we could get some equipment in there so we can start doing some things."
"It's going to be moving fast from this point," added Marc McNeece with the Knox County Chamber of Commerce, "Very good news for Knox County."
The project is expected to produce thousands of construction jobs, and 100 full time jobs when the plant into operation.
It's a project the community wanted and worked for.
"How could it not be worth the effort?" said McNeece, "A $2-billion power plant for Knox County. It's definitely been worth the effort."
Because the now the preliminary work is over and the real construction can begin.
Besides the construction and full time jobs the new power plant is expected to produce hundreds of supporting jobs in coal mines, trucking and other industries.
By: Mike Grant
WTHI-TV
----
Indiana Department of Environmental Management Issues Air Permit for Duke Energy Coal Gasification Power Plant
sunherald.com
- Edwardsport to be one of the world's cleanest coal-fired power plants, - Site may be one of the first demonstrations of carbon capture and storage technology at a power plant, - Retirement of 160 megawatts of older Edwardsport coal units planned,
By Duke Energy
PLAINFIELD, Ind., Jan. 25 --
The Indiana Department of Environmental Management today approved the air permit for a 630-megawatt coal gasification power plant planned at Edwardsport Station in southwest Indiana.
"We have an opportunity to make history with the Edwardsport plant," said James L. Turner, president and chief operating officer, Duke Energy U.S. Franchised Electric and Gas. "The facility could very well be one of the cleanest coal-fired power plants in the world. It will produce nearly 10 times as much energy as the existing Edwardsport plant with much less environmental impact."
The plant will use "integrated gasification combined cycle technology," a coal gasification system to convert coal into a synthesis gas (syngas). The syngas is processed to remove sulfur, mercury and particulates before being sent to a traditional combined cycle power plant. The plant uses two combustion turbines and a steam turbine to efficiently produce electricity.
"The decision on the air permit is the last approval we needed to start construction," said Duke Energy Indiana President Jim Stanley. "Thanks to state leadership, federal support, and unwavering local enthusiasm, southwest Indiana will be home to the nation's first power plant to use coal gasification technology on this scale."
Due to be completed by 2012, the new plant will replace four older, less efficient generating units capable of generating approximately 160 megawatts at the Edwardsport site. Some construction site work is expected to begin in about two weeks, and major construction will begin in the spring. An average of 800 to 900 construction workers over a three-year period, with a peak work force of approximately 2,000, will be needed. Ongoing plant operations will employ about 100 people.
The plant will cost approximately $2 billion to construct. That cost will be offset by more than $460 million in future local, state and federal tax incentives. The plant will result in an average electric rate increase of approximately 16 percent phased in from 2008 through 2012.
Climate Change Technology
The Edwardsport project also shows strong potential for the future addition of carbon capture and storage technology - one of the most promising solutions to how to address climate change while still using coal to produce electricity. The technology could remove carbon dioxide from coal during the syngas conversion process and then store or sequester it deep underground in geologic formations. Duke Energy will be filing with the Indiana Utility Regulatory Commission plans for a carbon capture and sequestration study of a portion of the plant's carbon emissions. If it proves to be feasible, carbon dioxide capture and storage equipment could be added to the plant.
Angeline Protogere of Duke Energy, +1-317-838-1338, +1-317-367-3306 pager,
------------
State gives green light to coal plant
Despite new technology, foes say plant will still spew pollution
January 26, 2008
indystar.com
By Jeff Swiatek
jeff.swiatek@indystar.com
Duke Energy won a state environmental air permit Friday for its proposed coal gasification power plant in southwest Indiana, clearing the way for construction to start on the $2 billion plant, even in the face of regulatory appeals by opponents.
Duke, the largest electricity supplier in Indiana and one of the largest in the nation, said the plant could "make history" by being one of the cleanest coal-fired power plants in the world. It would be the first major power plant built in Indiana in about 20 years.
Duke said it will have to raise electric rates for its 770,000 Indiana customers by 16 percent between 2008 and 2012 to pay for the Knox County plant.
The cost to build the plant will be offset by $450 million in local, state and federal tax incentives.
Opponents, including the Citizens Action Coalition of Indiana, have argued that the plant will spew significant amounts of carbon dioxide and other pollutants into the air and might cost much more if strict regulations are passed on carbon dioxide emissions, which are linked to a rise in global air temperatures.
"While this is certainly cleaner (than older coal plants), it is by no means clean," said Dave Menzer, utility campaign manager for Citizens Action Coalition.
He said the activist group will appeal the Indiana Department of Environmental Management's approval of the air permit.
"Clearly, IDEM is acting as a rubber-stamp here . . . in doing the Daniels' administration bidding," Menzer said. Gov. Mitch Daniels has been a supporter of the plant.
It took Duke about 17 months to win the approval, including an eight-month period when Duke put the process on hold, said spokeswoman Angeline Protogere.
Citizens Action also is appealing the state regulatory approval given last year to spend up to $2 billion to build the plant. The activist group has warned that the plant could cost close to $3 billion if strict regulations are ever placed on carbon dioxide emissions.
"Carbon regulation is coming. It will add new costs to power plants," Menzer said.
Duke plans to start construction site work in about two weeks, with major construction starting in the spring, the Charlotte, N.C., company said.
The 630-megawatt plant will be built along White River near Edwardsport, about 15 miles northeast of Vincennes. The plant will replace a 160-megawatt coal-fired plant that Duke operates there.
The new plant, if built and opened by 2012, stands to be the first in the nation to use coal gasification technology on such a large scale. Duke has tested the technology at a plant on the Wabash River near Terre Haute, Protogere said.
A coal gasification system converts coal into a synthesis gas that's processed to remove pollutants such as mercury and sulfur before being burned in a traditional turbine power plant to produce electricity.
"The facility could very well be one of the cleanest coal-fired power plants in the world. We have an opportunity to make history," James L. Turner, president of Duke Energy U.S. Franchised Electric and Gas, said in a statement.
Duke said it will file plans with state utility regulators to study the possible installation of carbon dioxide capture and storage equipment at the plant.
"This could be one of the first demonstrations of carbon capture and storage at a power plant. This project is technologically important not just for Indiana, but for the nation," Duke President Jim Stanley said in a statement.
The capture and storage technique would prevent power plant-produced carbon from being released into the atmosphere by trapping it underground.
The plant would be large enough to supply one-third of the electrical needs of the Indianapolis metro area. Duke's Indiana customers are in 69 of the state's 92 counties, though Indianapolis is covered by Indianapolis Power & Light Co., which operates it own plants.
Duke said it needs the plant to meet growing demand for its customers. Statewide electrical use is projected to grow by 2.5 percent a year over the next 20 years, according to the Indiana State Utility Forecasting Group.
Call Star reporter Jeff Swiatek at (317) 444-6483. |
