Changing and challenging winds in the power industry
It's an awkward time in the energy business. Coal is plentiful, but coal-gas generation is carbon-spewing, and the body politic won't tolerate that. Wind is promising but might not be enough. In the midst of this transition is Energy Northwest, the public-utility consortium whose customers are still paying for nuclear plants that were never built.
Click to enlarge
Both locally and nationally, efforts to have our cake and eat it, too, seem to be running a bit behind schedule. Burn coal and you produce carbon dioxide. Let that carbon dioxide escape into the atmosphere, and it traps heat, accelerating global climate change. If you want to halt climate change without foregoing the opportunity to burn the United States' estimated 271 billion tons of coal (27 percent of the world's supply), you must "sequester" the carbon – remove it from the waste stream, stick it into the ground, and keep it there.
As a centerpiece of the Bush administration's plan to produce energy from "clean coal," a public-private partnership called the FutureGen Industrial Alliance was going to build a coal power plant that sequestered carbon right there in Illinois. No more. The federal government, which was footing 76 percent of the bill, has announced that FutureGen is history.
"Michael J. Mudd, chief executive of FutureGen Alliance, said that the Bush administration's decision would set back the timetable for carbon capture and storage technology that is considered essential for meeting targets for greenhouse gas emissions," Steven Mufson reported in The Washington Post. Projected cost of the plant had nearly doubled to $1.8 billion. Added Rebecca Smith and Stephen Power in The Wall Street Journal: "The crippling blow dealt to FutureGen, the U.S. government's marquee effort to develop a "clean coal" power plant, will make it harder for the utility sector to slash carbon-dioxide emissions and keep coal in the mix over time as a cheap electricity source."
Closer to home, Energy Northwest's proposed 680-megawatt Pacific Mountain Energy Center at Kalama, Wash., is dead or stalled because it would appear to run afoul of a new Washington law. That law requires any new fossil-fuel-fired generating plant that produces more than 1,100 pounds of CO2 per hour (i.e., more than a natural-gas-fired plant) to somehow sequester the carbon emissions. Energy Northwest says it can't be done and wants the requirement waived, as the law provides. The State of Washington says they haven't tried, as they law requires.
So depending on how you look at it, the Pacific Mountain Energy Center could be a little ahead of its time (the technology's not mature yet) or a little behind (coal-gas is a dirty old way to make electricity). Either way, it's an awkward sell right now. An Energy Northwest executive said at a hearing last June that the project "is not dead," but some in the energy business aren't so sure. The technological and political challenges faced by Energy Northwest and other projects coincide with changing technological and political winds.
The plant would combine oxygen with a slurry of coal or petroleum coke to form a gas, then burn the gas to turn turbines. Waste heat from the gasification process and from the first combustion process would turn other turbines. Technically, this makes the operation an "integrated gasification combined cycle" generating plant, or IGCC. It is basically a gas-fired generating plant that manufactures its own gas – much as an early-20th-century gasworks turned coal into lighting gas beside Lake Union, long before the city of Seattle transformed the site into Gas Works Park.
Energy Northwest, a joint operating agency of Washington public utilities, applied in 2006 to the state Energy Facility Site Evaluation Council (EFSEC) for certification. The Washington Department of Ecology and two coalitions of environmental groups have intervened. This will be the carbon-sequestration law's first test.
Neither EFSEC nor the Department of Ecology has developed rules yet for sequestration. Energy Northwest is stepping into uncharted territory. No one else will be allowed to go through the process until rules are in place.
Pumping CO2 into the earth isn't an entirely new idea. People have already pumped the gas deep into old oil wells to boost production, although no one knows whether or not the CO2 will stay there forever. People are also testing the idea of injecting CO2 through bore holes into basalt, like the deep basalt flow that covers much of the Columbia Basin in Eastern Washington and Oregon. Theoretically, the CO2, liquified by the high pressure and heat deep underground, will seep into crevices, react with minerals in the rock, and form limestone - which isn't going anywhere, ever.
Under Washington law, if a utility has a sequestration plan and finds after a good-faith effort to carry it out that sequestration isn't feasible, the utility can buy carbon offsets from power plants elsewhere in the western U.S. or Canada. Energy Northwest says sequestration at the Pacific Mountain Energy Center isn't feasible and proposes buying offsets. It argues that the "measure of technological and economic feasibility for geological or other permanent sequestration ... is a cost of $5/tonne [of] CO2."
Critics don't accept that $5 threshold. And they don't believe Energy Northwest has the plan that state law requires. Assistant Attorney General Michael Tribble, functioning under EFSEC rules as counsel for the environment, has characterized Energy Northwest's current filing as nothing more than "a plan to have a sequestration plan."
Critics also argue that Energy Northwest has never demonstrated that sequestration isn't feasible. The Northwest Energy Coalition, the Washington Environmental Council, and the Sierra Club, represented by Earthjustice, argue in a recent brief that "mass market commercial availability is not the same as feasibility. A technology may be 'feasible' i.e. capable of being done, long before it is commercially available to a mass market." They argue that the Legislature wanted the law to push development of sequestration technology, not wait until the technology was available off the shelf.
"The core of the dispute involves timing," explains Assistant Attorney General Laura Watson. "Energy Northwest argues that it is entitled to determine now that sequestration is infeasible, which would excuse Energy Northwest from developing a detailed plan. The State Parties take the position that Energy Northwest cannot [determine] that sequestration is infeasible until it develops a bona fide sequestration plan and makes a good faith attempt to implement that plan."
If the Pacific Mountain Energy Center goes down in flames, it won't be the first power plant that the joint operating agency now known as Energy Northwest has failed to build. Once upon a time, doing business as the Washington Public Power Supply System (WPPSS), the organization gained national notoriety for a quixotic attempt to build five big nuclear plants – Three at the federal Hanford nuclear site in Eastern Washington near Richland, and two near Satsop, Wash., west of Olympia. Construction costs mushroomed, demand for power shrank, the well of Wall Street capital ran dry, and only one of those plants was finished. (As the Columbia Generating Station, it currently contributes 1,157 megawatts to the Northwest power grid.) The other four were abandoned, triggering the largest municipal default in American financial history.
WPPSS itself may have receded into the dim recesses of the region's consciousness, but WPPSS payments continue to show up every month on the region's electric bills. The Bonneville Power Administration had guaranteed nearly all the bonds sold to finance the first three plants. BPA customers will continue paying for those uncompleted plants through 2021. Currently, the annual debt service tab runs to roughly $311 million.
Like what you just read? Support high quality local journalism. Become a member of Crosscut today!











Twitter
Facebook
RSS Feeds
Comments:
Posted Tue, Mar 18, 7:11 a.m. Inappropriate
linked text
"IGCC: Pipedreams of Green and Clean"
linked text
MN report recommending DENIAL of PPA:
linked text
Here's the rejection in Delaware, with links to an excellent PSC staff report:
linked text
Arizona's Bowie plant didn't get beyond proposal stage, same with Xcel's plan in Colorado. Just last week, two IGCC proposals went down, one in Alaska, based on economic considerations, and another in Ohio, AEP's Miegs County proposal, which went down based on a Supreme Court decision that would not allow the utility to charge ratepayers before it was permitted and constructed.
Posted Tue, Apr 8, 2:05 p.m. Inappropriate
FutureGen, the near-zero emissions plant planned for Mattoon, Ill., and recently abandoned by the U.S. Department of Energy (DOE) in favor of a "restructured plan," would have developed advanced technologies like coal gasification and carbon capture and sequestration. Technologies developed at this plant would quickly be made widely available for commercial use in plants across the U.S., including Washington state, and internationally, and would serve as the model for clean coal plants worldwide. Even though (DOE) has abandoned the project, all is not lost. Congress has the power to make the project a reality. Congress can and should direct DOE to issue a record of decision for FutureGen so that the process to build this plant can continue.
A secure source of affordable and reliable electricity is critical to fueling our state's economy and keeping up with growing energy demands. Testing and commercialization of advanced coal-generation plus large-scale geologic sequestration is required to prove the effectiveness of this integrated approach. FutureGen will provide a commercial-scale research and development facility for industry to implement technology-based solutions to world energy needs, while supporting continued environmental improvement in the energy industry.
I urge our legislators in Washington state, particularly Sen. Patty Murray, a member of the all-important Senate Appropriations Committee, to help provide the federal funding necessary to make FutureGen a reality, while directing DOE to issue the record of decision. FutureGen can make our use of domestic coal environmentally friendly and help address our nation's growing demand for electricity.
Sincerely,
Michele
Issaquah, WA
cc: Senator Patty Murray
Login or register to add your voice to the conversation.